Under Arizona law, there are certain circumstances where an insurance company can cancel a customer’s policy. For example, within the first 60 days of the policy being issued, the insurer can cancel the coverage for any reason that it deems appropriate, as long as it doesn’t involve the insured’s
- National origin
- Place of residence
Once the 60-day period has passed or the policy is up for renewal, it can only be canceled for certain specific reasons:
- Conviction for certain driving related offenses (DUI, criminal negligence, reckless driving, leaving the scene of an accident)
- Policyholder or family member’s driver’s license suspended
- Policy obtained through fraud
- Premium not paid
- Vehicle is insured for personal use and is being used for commercial purposes
Having three or more at-fault accidents where the insurance company had to pay out more than the threshold for property damage set by the state Department of Insurance in a 36-month period is also grounds for the insurance company to cancel your policy.
Other than the reasons stated above, the insurance company can’t cancel your policy. As an insurance customer, you can choose to cancel your coverage if you wish. If you are changing companies, you will want to be sure that your new policy is in force before canceling the old one.