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What Is The Cancellation Law On Non-Trucking Liability Insurance?

What Is The Cancellation Law On Non-Trucking Liability Insurance?

Even though it may not be a legal requirement for trucking companies, many motor carriers often need proof of non-trucking liability insurance. This is because it can provide additional coverage when a truck is not being used for business purposes such as helping a friend move or doing errands. 

If you are unhappy with your non-trucking liability insurance plan, you may usually cancel your policy at any time. However, there may be cancellation penalties that apply if you terminate your contract. Insurers can also cancel on-trucking liability insurance in certain circumstances but are legally required to provide notice in writing to the insured party. 

Cancellation Policies for Trucking Insurance 

If you choose to cancel your trucking insurance plan, you should check the fine print of your contract to see if there are any fines or penalties you’ll have to pay. You may also have to pay the remaining balance of premiums on your account. 

Insurance companies can also cancel your non-trucking liability insurance coverage with a 10-day notice for non-payment or a 30 to 35-day notice for other reasons, but this is unlikely to happen in the middle of a term unless you have made misleading claims in your non-trucking liability insurance application. 

The MCS-90 endorsement and federal regulations state that insurance policies can’t be canceled until 30 days after written notice has been given to the FMCSA by the insurance company, with 35 days of notice in writing to the other party. They will also need to comply with state law depending on their location. 

Frequently Asked Questions:

Can I cancel my non-trucking liability insurance anytime?

Yes, you can usually cancel your non-trucking liability insurance at any time, though cancellation penalties may apply based on your policy's terms.

Under what circumstances can an insurance company cancel non-trucking liability insurance?

An insurer can cancel your coverage with a 10-day notice for non-payment or a 30 to 35-day notice for other reasons, including providing misleading information in your insurance application.

What are the regulations regarding policy cancellation notices?

The MCS-90 endorsement and federal regulations require that insurance companies provide a written notice to the FMCSA 30 days before cancellation and 35 days of written notice to the insured party, in compliance with state law.

To learn more about the average cost of non-trucking liability insurance, check out the rest of Assured Standard!

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