An insurance company can only cancel your policy for good reason.
If you are late making your payments, they may drop you. Though there might be a grace period, it will depend on the company or type of insurance you have. Different companies handle this differently. Also, Auto, Life, Health, and Home policies have different rules regarding late payments.
If you lie to an automobile insurance company about the distance you drive car, you could also end up being dropped. Other lies you want to avoid are dangerous hobbies such as sky diving. Should you die while sky diving and your insurance company did not know, then your beneficiaries will not receive anything. If you are caught lying during the two year contestability time frame they can reduce the death benefit or cancel the policy.
Should you or another driver on your policy lose your license or get it revoked it is very important to contact your auto insurance company right away.
They will cancel the policy for the driver that doesn’t have their license. Also at the time of renewal the insurer usually will check the DMV records to verify you still have a license. If you do not inform the insurance company, your entire family could be left uninsured.
Your insurer can cancel your policy if you ignore their phone calls, especially during a claims-settlement process. You are required to comply and answer their calls and message. They may be calling because you need to be interviewed or appear in court. According to a standard car insurance policy, it states the insurer has “no duty to provide coverage” unless you are in full compliance.