Best Car Insurance Companies That Report to the DMV When They Cancel a Customer’s Policy (2021)

You can expect to buy car insurance from car insurance companies that report to the DMV when they cancel a customer’s policy because state insurance laws require all providers to report canceled policies to the DMV within 30 days. Car insurance cancellation laws also require companies to give drivers a grace period of at least ten days to find new coverage before canceling a policy.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Dec 14, 2021

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The Highlights

  • All car insurance companies are required by state law to report canceled policies to the local DMV
  • Car insurance cancellation laws require that drivers be given a car insurance grace period after termination to find new coverage
  • Car insurance companies have 30 days to report any policy changes to the DMV

Car insurance companies that report to the DMV when they cancel a customer’s policy are the standard. Each state’s insurance cancellation laws will vary, but, in general, insurance providers have 30 days to report a canceled policy to the local department of motor vehicles.

However, car insurance cancellation laws prohibit insurance companies from canceling your policy for no reason. Drivers must be notified and given a car insurance grace period after termination of at least 10 days to find new coverage.

Keep reading to learn more about car insurance cancellation laws, what to do when your car insurance policy is canceled, and why it’s essential to compare car insurance before you buy.

Ready to buy car insurance now? Enter your ZIP code above to start comparing free car insurance quotes from local companies near you.

Why do car insurance companies report to the DMV when they cancel a policy?

Because liability auto insurance is required in nearly every state, state laws require insurance companies to submit coverage details to the DMV.

This information is stored in an electronic database and used to track drivers’ registration. It can be accessed quickly after an accident or traffic violation to determine whether drivers carry the legal levels of liability coverage.

When you cancel or change your policy, this information is updated by the insurance company and forwarded to the DMV. The provider has around 30 days to report any policy changes to the DMV and update the database.

State insurance laws require all insurance companies to alert the DMV when they start a new policy or cancel an existing one, so you won’t find coverage from car insurance companies that don’t report to the DMV when they cancel a customer’s policy.

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What happens when the car insurance company cancels my policy?

Car insurance companies that report to the DMV when they cancel a customer’s policy can cancel policies at any time. However, state insurance laws determine why and how these policies can be withdrawn.

For example, a provider cannot deny or cancel coverage due to your driving record without telling you why it denies you coverage. In addition, even if you miss your insurance payments, your provider must notify you that your policy will be canceled due to non-payment before terminating your coverage.

Typically, if you missed a premium payment, you may be able to have your coverage reinstated after paying the outstanding bill. However, it can be harder to reinstate coverage if you filed a false claim or lied about another driver.

If you’ve received notice from your car insurance company that your policy will be canceled, you will have 10 to 20 days to find new coverage.

When you are notified of cancellation, it’s important to start shopping for new car insurance immediately to avoid a lapse in coverage.

Driving without insurance is illegal in every state except New Hampshire and Virginia, and you will see your car insurance rates skyrocket if you go without coverage, even for a few days.

Can car insurance companies check canceled policies?

When determining your eligibility for coverage and how much to charge you, car insurance companies will look into your driving and insurance records. Your insurance record will include any claims you’ve filed as well as any lapses in coverage you may have had.

If your car insurance policy were canceled for any reason, it would likely show up on your C.L.U.E. auto report. LexisNexis, a third-party risk solution management company, compiles claims and insurance history for drivers over the past seven years.

Insurance companies and drivers can both request access to C.L.U.E. reports, but be aware that car insurance companies can check canceled policies going back at least seven years.

If you have canceled policies on your record, you can expect to pay higher car insurance rates with car insurance companies that report to the DMV when they cancel a customer’s policy.

To find the cheapest car insurance rates possible, compare quotes online from at least three different companies near you. Get started now with our comparison tool below. Enter your ZIP code now to get free car insurance quotes.

Are you looking for free insurance quotes?

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