In most cases, an Arizona car insurance policy will come with a sixty day discovery period. This period allows both the policyholder and the insurer to cancel the policy immediately for any reason they wish. Following this period, there are certain rules and regulations put in place to deal with the cancellation of an insurance policy by both sides. If the policyholder has faulted on their payments or has not provided enough funds to cover the cost of the premium then the policy may be cancelled by the insurer. However, there must be evidence to prove that there are significant payment issues. If the insurer finds that policyholder submitted documents that were fraudulent at the time of application then such as a fake credit history then the insurer is within their rights to immediately cancel the policy. In the case of fraud it is also likely that legal action will be taken against the policyholder. Where the policyholder is concerned there are certain changes in personal circumstance that would allow them to cancel their active Arizona car insurance policy.
Driving License Suspension
If the policyholder has for any reason had their driving license suspended or revoked then they will be able to cancel their insurance policy.
If the policyholder has been involved in an accident that leaves them physically or mentally disabled and therefore unable to drive their vehicle, then they may cancel their current insurance policy.
If the policyholder has been convicted of any crime that involves a car such as driving under the influence of drugs or alcohol, or being involved in a hit and run collision then it is likely that the policy will be immediately cancelled by the insurer. However, if it is not then the policyholder may cancel the policy themselves following conviction.
Insurer Financial Uncertainty
If an insurer is placed in receivership by the insurance supervisory official due to financial uncertainty, or if the insurer’s certificate of authority is rescinded then the policyholder may cancel their Arizona car insurance policy immediately and in cases of severe financial uncertainty they may even be forced to do so.
If the policyholder has been personally involved in over 3 accidents during the active period of their policy then it is highly likely that the insurer will consider them too much of a risk and cancel the policy.