Is It Hard to Get Insurance After Being Cancelled?
Getting insurance after a policy cancellation can be more challenging—but it is not impossible. The difficulty largely depends on why the policy was cancelled and what steps you take afterward.
Why Policies Get Cancelled
Insurance companies may cancel a policy for several reasons, including:
- Nonpayment of premiums
- Material misrepresentation on the application
- Increased risk (such as repeated claims)
- Property condition issues (for homeowners' policies)
If the cancellation was due to nonpayment, many insurers will view you as higher risk. If it involved misrepresentation or fraud, finding new coverage may be significantly more difficult.
Cancellation vs. Non-Renewal
It is important to understand the difference:
- Cancellation: The insurer terminates the policy before it expires.
- Non-renewal: The insurer chooses not to continue coverage at the end of the policy term.
Non-renewal is generally less damaging to your insurance record than mid-term cancellation.
How Insurers Evaluate You
When you apply for new coverage, insurers review your claims history, payment record, and prior cancellations. In states like Texas, insurers also consider weather-related losses and regional risk factors.
A prior cancellation may result in:
- Higher premiums
- Stricter underwriting requirements
- Limited carrier options
However, many companies specialize in higher-risk applicants.
High-Risk and Alternative Options
If standard insurers decline coverage, you may still qualify through:
- Surplus lines insurers
- State-backed programs (for certain risks like windstorm coverage)
- Assigned risk auto insurance pools
These options often cost more but provide a pathway to maintain required coverage.
Steps to Improve Your Chances
To make approval easier:
- Address the reason for cancellation (such as paying past-due balances).
- Make necessary property repairs before applying again.
- Work with an independent insurance agent who can shop multiple carriers.
- Avoid coverage lapses, especially for auto insurance.
Maintaining continuous coverage moving forward helps rebuild your insurance profile over time.
Conclusion
While it can be harder to get insurance after being cancelled, it is rarely permanent. The key factors are the reason for cancellation, your claims and payment history, and how quickly you correct underlying issues. With the right approach, most policyholders can secure new coverage—though it may come at a higher initial cost.
