Can My Car Insurance in Arizona Be Non-Renewed Because of Accidents?

Arizona and United States flagAuto insurance policies are a product that the majority of consumers purchase with the hopes of never having to use it. However, traffic accidents occur everyday, and dependent on the circumstances of an accident, an Arizona motorist may find that an insurer may not allow the policy to be renewed when the term is up. Motorists that are involved in numerous accidents or are in a collision as a result of illegal activity may no longer be offered coverage by their provider.

The Arizona auto insurance laws are fairly strict in regards to whether a company can decide not to renew a policyholder's coverage. One form of consumer protection offered by the state is the prohibition of a carrier non-renewing a policy of an insured due to accidents unless certain specifics are met.

According to the state, one of the valid reasons that a carrier may not renew an insured's policy due to accident involvement is if customer has been at-fault in three or more accidents during the thirty-six months prior to the date of a nonrenewal notice. These accidents must also exceed the threshold amount of property damage that is set by the state. Currently, the amount of the threshold is $2,400, which means that a policyholder must cause over $2,400 in property damage as a result of an automobile collision on three separate occasions within a thirty-six month period in order for a car insurance company to issue a nonrenewal.

Another reason that an auto insurance policy may be non-renewed is if a policyholder commits criminal negligence resulting in death, homicide or assault while operating an automobile. Fleeing the scene of an accident is also considered a valid reason for non-renewal.

Broadside damaged SUVAdditional reasons for non-renewals may be allowed, and an insurer must give notice to the policyholder forty-five days prior to the end of coverage. If a motorist receives such a notice and believes that it is not in accordance with the law, they are advised to contact the Arizona Department of Insurance within ten days of receipt of the notice and state the objection.

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