Can the insurance company drop you right after signing you for not driving enough?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Mar 8, 2017

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Insurance Question from Smithtown, NY

Asked on 03/08/2017

Can the insurance company drop you right after signing you for not driving enough? My mother-in-law just switched from Geico from TSC to get a lower rate. She paid the full year premium upfront. But one month into the policy TSC informs her that they are dropping her because she does not drive enough, giving her less than 2 weeks notice to find another insurance company. Can they do that? Does she have any recourse to insist on her coverage as agreed upon?Also, this doesn't make any sense, it is a much lower risk for them and hence "free money" since she only puts about 3k miles on the car per year...

Answer given on March 11, 2017

I have never heard of an insurance company dropping a client, new or not, because they do not drive enough. When your mother in law signed up for the insurance did she discuss her driving habits with the agent or insurance company. If so the issue should have been raised at the time. Your mother in law should call the insurance company and try to get clarification as to the cancellation. The insurance company does have the right to cancel within a certain period of time, usually 30 days.If your mother in law cannot get a satisfactory answer from the company, she should talk to the Dept of Insurance in her state to see if they can assist her.If the new insurance company still refuses to keep her insured, she can talk to her old insurance company or look for a replacement. It is most likely the old insurance company will take her back if there is no issue with her record and if she does not have a lapse of insurance.

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