First Time Driver Insurance California CA

Reader’s Question:

I’m a first-time driver here in California, and I’m trying to learn about car insurance policies as much as I can. How different is cancellation from non-renewal? These terms confuse me a bit.

Karen

San Francisco, CA

Hey, Karen, I hope the following is helpful.

Cancellation means you have terminated your contract with a car insurance company before the date that it expires. In this case, you have to notify your auto insurance company there in California beforehand. It will then send you a letter of confirmation. When you decide to do this, you will be required to surrender all your certificates of car insurance. This can be a rather inconvenient process especially when you have lost your certificates. You will have to sign a form declaring that you have in fact lost them because not doing so and not turning them over are violations of the road traffic act. Refunds are not very common. Also, higher auto insurance premiums rates would apply because the longer you stay insured with the same company, the lower the premium should be. Terminating you car insurance policy early means your premium rate would end up higher than the rate you were first offered.

Here is another scenario. The car insurance company may also cancel your car insurance coverage if you fail to make your payments. Another possible reason for your contract to be terminated is if you provide the insurer with false information. Any kind of misrepresentation or fraud is a serious matter in this industry. Finally, your car insurance policy may be canceled if your driver’s license was revoked.

Non-renewal, on the other hand, means your car insurance policy will not be renewed after it has already expired. There are several factors to this; It could be no fault of yours. You can even complain to the state insurance department about this if you think it’s unfair. It doesn’t mean you must expect to be quoted higher premiums by the next car insurance provider that you choose.

 

Tags: auto insurance coverage, auto insurance policy, First time driver car insurance