Can a Maine Auto Insurance Company Cancel my Policy?

During the first 60 days that your Maine auto insurance policy is in force, the company has the right to cancel the coverage for any reason it chooses, as long as the reason does not violate state law. Maine statutes prohibit a car insurance company from canceling a policy because of the policyholder’s age or credit rating.

After the six-month period, the insurer can only cancel the policy under certain circumstances:

Failure to pay the premium: If the premium is not paid on or before the date shown on the bill, the Maine auto insurance company can cancel the policy. There is no set “grace period” that insurers are required to give to customers who do not pay on time.

Fraud or misrepresentation: An insurance company can cancel a policy if it discovers that an applicant was not honest when filling out his or her application for coverage. Putting false information on an application form will also mean the insurer will cancel the policy.

Driver’s license suspension: If the policyholder has had his or her driver’s license suspended while the policy is in force or within six months of the last renewal date, the insurance company can cancel the policy.

A Maine auto insurance policy is a contract between a policyholder and the company. As long as the policyholder has not committed fraud or had his or her license suspended and continues to pay his or her premiums on time, the insurance company must honor the contract.