There are many reasons why your insurance company can cancel your car insurance policy in Pennsylvania. Moving violations, suspensions, and accidents are just a few. Late payments and missing a payment is another, and Pennsylvania laws do not require companies to have a grace period for premium payments. However, by law, you will still need to obtain new insurance or you risk suspended driving privileges completely.
Additionally, some insurance companies add surcharges at renewals if you have moving violations, suspensions, or accidents even if they are not your fault. Some will even allow your spouse or teens to remain on the policy if you have a cancellation, but you will not be able to drive the vehicle yourself. Furthermore, once cancelled, no one can drive your vehicle until you purchase replacement insurance through another company, and reinstatement is complete.
If you receive a cancellation and cannot find replacement insurance Pennsylvania has an Assigned Risk Plan that is more expensive, but does keep you on the road. The insurance could even go through the same insurance company you have now. This is because the commonwealth requires all companies that sell in Pennsylvania to participate in the Assigned Risk Plan.
Keep in mind that you can also cancel your insurance policy provided you have coverage to replace the plan. However, there are some risks involved. The greatest is that the new Insurance Company has up to 60 days to investigate all drivers in the household, if any have suspensions, moving violations or accidents they also can cancel your new policy. Likewise, each time you receive a cancellation the next insurance company deems you a higher risk. Eventually you would only be eligible for the Assigned Risk Plan.
Still, you may be asking a question about what you can do when faced with high premiums. Even so, there are many reasons for your rates to be higher. If a company has paid a higher volume of claims in some neighborhoods, they can increase rates. If a driver in your household has moving violations or suspensions, they can increase rates. If you or any family members have been involved in any accidents, they can increase rates.
Sometimes it is less expensive to purchase a separate policy for the person who is a higher risk. However, you must prove to the Department of Motor Vehicles that each person has insurance. Although the company cannot cancel you because of age, marital status, occupation, or for any discrimination purposes, every driver who lives in the household must have insurance or you will risk suspension and all driving privileges.
Additionally, you can reduce the amount of insurance coverage you currently have. Work with your agent to determine, where you could best reduce the expense of your insurance policy without reducing the benefits that you need.
Full Tort and Limited Tort are options that you select, but if you select Limited Tort, you should be aware that you are limiting you rights to full settlements if you are in an accident. Uninsured and Underinsured coverage are other options that can decrease your premium. However, again each loses some of the benefits found in most car insurance policies in Pennsylvania.