How can an insurance company cancel my policy without forewarning me?

Insurance companies are at liberty to cancel your policy without giving you any forewarning for various different reasons. One reason that would permit the insurance agency to cancel without forewarning is filing too many claims in a certain period of time. In this situation, the cause of the claims could be out of your control, but you will still be cancelled. The insurance agency will deem you a high risk client and cancel your coverage. Another instance is if you do not make payments. Most cases the company has a grace period for receiving the payment, but they will still cancel after missing multiple payments. And finally, the insurance agency can cancel you if they go out of business. In most cases the insurance company will make sure your policy is taken over by another company, but they are not required to tell you about it until after it is done.

All of these reasons will be outlined in the contract you sign with the company. Although the insurance companies have the right not to forewarn you about the cancellation of your policy before it takes place, they always make some effort to do so.