I was in an auto accident in Florida on 09/09/2011. My insurance company (State Farm) cancelled my policy and I have since gone to another insurer.
My mother and brother also have State Farm insurance and their policies are being cancelled. I am not covered by their plans, nor do I drive their vehicles. Is it legal for State Farm to cancel them?
The best way to find out is to have your mother and brother speak with their State Farm agent and ask the agent to find out why they are being canceled.
There are many reasons an insurance company may cancel a policy, including, but not limited to, non-payment of premium, material misrepresentation in the initial application, license suspension due to excessive points, conviction of driving under the influence, an accident in which the insured is at fault, or multiple accidents regardless of fault.
I would have your mother and brother contact their agents, which may shed some light on the cancellation.
Lars A. LundeenPersonal Injury LawyerRutland, VT ·
Yes, the company can cancel the policies.
I recommend that you and your family members speak with an independent insurance agent and have the agent shop for the most cost-effective policy that provides you with your needed degree of coverage. While bodily injury liability insurance is not required in Florida, that certainly is a coverage that you should purchase, along with uninsured motorist coverage.
Speak with an independent agent.
As a former insurance company defense attorney, I can tell you insurance premiums are based on risk: the greater the risk the insured might present, the higher the premium.
The carriers look at a number of factors when deciding to insure a vehicle. The driving record of the potential insured is the primary component carriers look to when deciding the risk to insure. If a person has a significant number of tickets or car accidents, they might not continue to insure their vehicles.
In addition, if there is evidence of misrepresentation when filling out the policy, that too could cause the carrier to cancel coverage. If you get a DUI, that will increase the risk factor substantially and cancellation of the policy is not uncommon. Again, if you are just too risky and the carrier does not feel it can make a profit from your premiums, they will cancel.
