Can I Appeal an Auto Insurance Cancellation in Massachusetts?
There are many reasons why a coverage provider would cancel a motorist’s insurance policy, but consumers in the Bay State have the right to appeal that cancellation. To accomplish this, a motorist must complete a cancellation complaint form and submit it to the Massachusetts Division of Insurance Board of Appeal with a copy of the cancellation notice.
Coverage May Remain in Place If Drivers Act Promptly
There is no cost to the motorist to submit these forms, and if they are filed before the cancellation date, the driver in question will remain insured until the board has come to a conclusion. The driver should have some formal warning that a policy is going to be terminated; insurers in Massachusetts are legally required to send the policyholder notice at least 20 days before the effective date of cancellation. Once a notice of cancellation has been issued to a motorist, it’s important to act as quickly as possible to avoid a lapse in coverage.
In the event that a motorist files a complaint after the MA car insurance policy has been canceled but still within 10 days of that cancellation, the motorist’s complaint will still be acknowledged, but the driver in question will remain uninsured. That could result in complications if the resident in question still wishes to drive.
Exceptions to the Right to Appeal
Residents should note that complaints cannot be made in the following circumstances:
• The motorist has already purchased a policy from another provider.
• The complaint is that an insurance company refuses to issue a policy.
• The policy cancellation was caused by a finance company.
Avoid a Lapse in Coverage
Because it is illegal to operate a motor vehicle in the Bay State without a policy, residents are strongly urged to avoid driving while uninsured or risk having either to pay a fine ranging from $500 to $5,000 or to serve jail time.
In the event that a motorist’s coverage has been canceled before he or she manages to purchase another policy, the driver in question is also required to return the vehicle’s license plates to the Registry of Motor Vehicles or risk penalties.
To avoid a lapse in coverage and the possibility of facing the previously mentioned consequences, motorists are urged to compare Massachusetts auto insurance quotes online before their policy has been canceled. Exploring sample rates from multiple insurers can allow residents to find cheaper prices by providing potentially dozens of options from one website. In the event that residents are unsuccessful in their appeal, they may be able to make a seamless transition from one insurer to another.
Motorists should thoroughly research alternative insurers if a valid notice of cancellation has been issued, especially if that notice is for non-payment or other activities that may be interpreted by other insurers as high-risk actions. Often drivers in the non-standard market have a more difficult time locating affordable coverage, and additional research may be required on the part of the shopper.