Can Auto Insurance Companies Drop You. Car insurance companies can cancel, or “drop” your coverage, although you will typically be given enough notice to obtain a new policy. Insurance companies can usually drop you for any reason during the first 60 days of your policy.
Nonetheless, it's quite an easy process if you want to switch car insurance companies. Unsafe driver with frequent insurance claims Your insurance company will generally declare your car a total loss if the cost to repair it exceeds a certain percentage of the car’s value.