What Should You Do When You’ve Been Dropped?

Reviewed by Kara H. North, Managing Attorney at Moxie Law Group. Last reviewed September 21, 2026.

Reviewed by Kara H. North, Managing Attorney at Moxie Law Group. Reviewed February 27, 2025.

What Should You Do When You’ve Been Dropped? 

Don’t Drive 

If you have received a letter from your insurance company explaining that you’re being dropped, you need to find new insurance before you start driving again. Your insurance company shouldn’t just send you a letter that says, “no more insurance for you, effective immediately.” Instead, they’ll likely inform you that they are dropping you and that on a certain date, you will no longer have car insurance. For example, it may sound like, “Your policy will be cancelled, effective 14 days from (date).” If you have not found insurance by the time your policy is terminated, do not drive your car—it is uninsured. Insurers do not care that it was insured 24 hours ago, or that you forgot that your insurance was going to be cancelled. If you cause someone to sustain injury while driving without insurance, you could be personally liable for the injuries they sustain. You may also face criminal consequences for driving without insurance. 

Find Out Why You’ve Been Dropped 

If you receive notice that you’re being dropped, you will likely benefit from finding out why you’re being dropped. Your insurance company has to tell you why they’re no longer going to provide you with coverage. Knowing why you’re being dropped can help you explore different options. Most commonly, insurance companies drop clients because the client is too risky to insure. However, it could also be that the car or the property is too expensive to insure. If you buy your sixteen-year-old a Lamborghini, for instance, you may struggle to find insurance for it because a sixteen-year-old would be considered to be a high-risk driver, and a Lamborghini would be a very expensive car to fix. This happens with property and homeowner’s insurance too: it is possible for a company to refuse to provide homeowner’s insurance because the property is just too “high-risk.”   

Shop Around 

Just because one insurance company decides to drop you, that doesn’t mean you couldn’t get insured with another company. Different insurance companies make decisions regarding who they are willing to insure, and who they aren’t, all the time. Some insurers may decide to get out of the homeowners insurance business because of wildfires, while others really want to focus on homeowners’ insurance. If you’ve been dropped, reach out to insurance brokers who work with multiple insurance agencies to see if they can shop your rates and products for you all at once. 

Consider Nonstandard Insurance 

If shopping around still doesn’t help you obtain the insurance you want, consider nonstandard insurance. Nonstandard insurance generally refers to car insurance that’s specifically meant for high-risk drivers. What’s so special about nonstandard insurance? Well, generally, it’s the price tag, not the insurance itself. Nonstandard insurance typically offers the same, if not similar, coverage that standard insurance offers. However, the costs of the premiums for nonstandard insurance is calculated at a much higher rate due to the fact that it was designed for people who are more likely to file a claim. So, if you don’t have to buy nonstandard insurance, there isn’t any advantage for having it; you’re just paying more for something that you could probably get for less. However, if you were dropped by your insurance company due to having too many accidents or traffic citations, it may be worth it to shop around to see what options you have for nonstandard insurance 

Take Action 

The reason you were dropped will matter as, in some cases, there may be things you can do to prevent getting dropped in the future, or to prevent paying higher premiums for your insurance. If you were dropped because you were considered to be too much of a risk, you can see if there are defensive driving courses that you could take. Sometimes, these will lower your rates. In some states, taking driving courses can actually result in having points removed from your license. Depending on your circumstances, if you’ve just purchased a very nice car, your insurance company may decide that the car is too risky to insure. This may be even more common with exotic or luxury cars. If you’re looking to buy a new car (especially if it’s a vintage, luxury, or otherwise unique car), it’s a good idea to call the insurance company and make sure that they’ll insure it, and that you can afford the premiums. 

What If Nobody Will Insure Me? 

If you cannot find insurance, you will need to join a state-assigned risk pool. A state-assigned risk pool is, in short, a government program that matches drivers to insurance policies. Typically, this is reserved for the most high-risk drivers and, of course, the premiums tend to be significantly higher.  While that may sound like it’s too much, you have to have insurance if you’re going to drive. You cannot say that “nobody will sell me insurance, so I don’t have any” when you get pulled over and asked for proof of insurance. Eventually, you’ll be able to purchase a standard policy after you’re no longer considered to be a high-risk driver.  

Do I Really Need Car Insurance? 

Yes, you really need car insurance. You cannot drive without car insurance legally. If you are caught driving without insurance, you could face traffic citations, get your license suspended or, in some cases, have your license revoked. Driving without insurance can have other consequences as well: you could be personally liable for any accidents you cause, and insurance companies could refuse to sell insurance to you due to your failure to have car insurance.  

When You’ve Been Injured 

If you have been injured in an accident, contact Moxie Law Group today to get started on your free consultation.

Being Dropped by Your Insurance FAQs

Can my insurance company drop me for one claim?

In many cases an insurer can choose not to renew a policy after a claim, though the rules vary by state and by whether the policy is mid-term or up for renewal. A single not-at-fault claim is far less likely to trigger it than a pattern of claims.

What is the difference between being dropped and non-renewed?

Being dropped, or cancelled, usually happens mid-policy and requires specific grounds. Non-renewal happens at the end of your term, when the insurer simply chooses not to offer you a new policy.

Will being dropped raise my rates elsewhere?

It can. Other insurers may view a cancellation or a string of claims as higher risk, though shopping around often turns up better options than you expect.

How long does a dropped policy affect me?

The impact usually fades over a few years as claims age off your record. Keeping continuous coverage from that point forward is one of the best ways to rebuild a favorable profile.

Can I be dropped after an accident that was not my fault?

It is possible, though a genuinely not-at-fault accident should not count against you the way an at-fault one does. If you were hit by another driver, our Utah car accident attorneys can help make sure fault is documented correctly.

Dropped After a Crash That Wasn’t Your Fault?

Insurance companies sometimes drop or pressure their own policyholders right when a claim gets expensive. If your policy trouble started with a wreck someone else caused, you may have a claim against the at-fault driver instead. Our Salt Lake City car accident lawyers can evaluate it free of charge, and our Pleasant Grove office serves all of Utah County.