When you obtain a car insurance quote you will be required to answer several questions about your previous insurance history and driving record. How you answer these questions will directly affect the premiums that you are quoted. One of the questions an insurance company will ask is if you have ever had a policy cancelled by a previous insurer. Any policy termination can influence a future car insurance quote.
There are basically two reasons that an insurance company can initiate a policy termination while it is in midterm. Your policy can be cancelled if you fail to pay the required monthly premiums or if you commit fraud or misrepresentation. If your policy has reached the date of expiry, then your insurance company can refuse to offer renewal if they wish.
However, there are several reasons that your insurance company cannot use to cancel your policy. If your policy has been in effect for more than 60 days, your insurance company cannot cancel it without reason, except for non-payment or fraud.
If you have accumulated many speeding tickets or other driving infractions, or have been involved n an accident, then your insurance company cannot simply cancel your policy because you now pose a higher risk to them financially. This is especially true if you currently have a claim open that hasn't yet been resolved. Once your insurance policy reaches its renewal date, then your insurance company can refuse to renew it or they can increase your premiums to reflect the level of risk that you pose.
An insurance company cannot decide to cancel your insurance policy if you allow someone to drive your vehicle who is not listed as a driver under the policy. When you lend your vehicle to someone else, you are also lending out your insurance. So, if that driver is involved in an accident, then you will be responsible for any damages or injuries that may have occurred. As the registered driver, you may also be named in a lawsuit depending on the severity of the accident.
You or your insurance company can make the decision not to renew a policy once the expiry date arrives. However, your insurance company cannot just decide to cancel your policy midterm unless they have a valid reason. If you feel that your insurance company doesn't have a valid reason for canceling your insurance, then you can file a complaint with the insurance company. If you are shopping around for a new car insurance quote, then you must advise them if you have ever had a previous insurance policy canceled and you must also state the reason why it was canceled.