Auto insurance policies can only be canceled for a few specific reasons, such as filing too many claims, being consistently late or completely missing payments, or incorrect information on your initial application or a subsequent claim. In all cases, however, you will be notified in writing at least 30 days before your policy comes to an end, which gives you time to find a different insurance carrier.
If you receive a notice that your policy is scheduled for cancellation, you have the option of disputing the situation or bringing the account into a favorable position. Keep in mind that when you appeal such a decision, your dispute will be considered by arbitrators who work for the insurance company. In most situations, the better decision is to let the cancellation proceed and seek coverage elsewhere.
The important thing is that you get new car insurance before the existing policy ends. Any lapse in your insurance coverage would be reported to the DMV and could result in your license or vehicle registration being suspended or revoked. Even if you get a new policy, make certain that the change is reported to avoid problems arising from the cancellation. It is your responsibility to make sure the DMV is updated about changes in your insurance coverage, but the notification is usually done electronically by the insurance company.
In some cases, you may be able to resume coverage after a cancellation notice has been sent, but once the policy is terminated, you will not be able to resume the policy. In some cases, the insurer may write another policy for you, generally at a higher rate, but once an insurance policy is terminated, it cannot be put back in force again. However, you can always get free car insurance quotes from other companies.