On What Grounds Can My Minnesota Auto Insurance Be Canceled?
When Minnesota motorists buy an auto insurance policy, their coverage provider may cancel the plan within the first 59 days for virtually any reason. The only motives for cancellation that are prohibited during this period are those related to the insured’s employment status, tenant status, or for having no previous vehicle coverage (unless the driver has been required by law to purchase a policy). After the initial 59 days, a motorist may have a policy canceled only for a handful of reasons.
A common reason why motorists would have their Minnesota car insurance policy canceled is nonpayment. If motorists miss an installment or make a late payment, their plan may be immediately canceled. Often insurers do not provide billing grace periods, and making an overdue installment can result in a lapse in coverage.
If motorists are diagnosed with a specific illness that may inhibit their ability to drive, such as epilepsy, and are unable to provide a written statement from a physician stating that they can still safely operate a motor vehicle, they may lose their insurance policy. Additionally, if the insured vehicle is defective to a point where operation would pose a significant public safety risk, a policy may be terminated.
Because car insurance companies use many different details when setting rates, misinformation or failure to report certain facts to the insurer while buying coverage can lead to pricing inaccuracies and grounds for coverage cancellation. Actions and types of omitted information that can lead to a cancellation include:
- Knowingly making a false or fraudulent claim
- Aiding another person in presenting a false claim
- Failing to disclose an accident or traffic violation that took place within 36 months of purchasing the policy
- Failing to disclose that the policyholder is subject to a lawsuit for refusing to cooperate in a claims investigation
- Failing to disclose the presence of another motorist living in the same household who would be insured under the same policy