Maine car insurance customers need to understand that the company can choose to cancel the policy during the first 60 days after it is issued. They can do so for any reason that is not specifically prohibited under state law. After the 60-day mark has passed, a cancellation by the insurer is treated as a mid-term cancellation and can only be made for the following reasons:
Failure to Pay Premium: The premium payment must be made on or before the date on the invoice you are sent. If the payment is not made, the insurance company has the right to cancel the policy. There is no “grace period” given to Maine car insurance customers, although the company may agree to reinstate your policy if you pay the amount owing promptly.
Fraud or Misrepresentation: If you lie or otherwise conceal information from the car insurance company that would affect the decision to provide coverage or use false information to make a claim, the insurer has the right to cancel the policy.
Suspension of Driver’s License: In a situation where you (or a named driver on your policy) has had a license suspension, the insurance company can cancel the policy.
To avoid having your Maine car insurance coverage cancelled by the company, make sure that you are truthful on your application for coverage and that you pay your premiums on time. Having your license suspended, such as when you are charged with a DUI offense, can also lead to your policy being dropped by your insurer.