How DUIs cause cancellation of insurance

Did you know that insurance companies can cancel insurance if a person’s driving privilege is suspended or revoked?

A DUI can cause your privilege to drive to be suspended three different ways.

First, if a driver either fails to request an administrative hearing within ten days of his/her license being seized OR loses the administrative hearing that he/she request AND/OR

Second, if a driver is convicted of a DUI in court AND/OR

Third, if a driver accumulates four or more points in a 12 month period.

California Insurance Code Section 661(a)(2) allows an insurance company to cancel insurance if the driver’s license was suspended or revoked.

California Insurance Code Section 661(a)(2) reads (bold for emphasis):

(a) A notice of cancellation of a policy shall be effective
only if it is based on one or more of the following reasons:

(1) Nonpayment of premium.

(2) The driver’s license or motor vehicle registration of the
named insured or of any other operator who either resides in the
same household or customarily operates an automobile insured
under the policy has been under suspension or revocation
during the policy period or, if the policy is a renewal, during its
policy period or the 180 days immediately preceding its effective

(3) Discovery of fraud by the named insured in pursuing a claim
under the policy provided the insurer does not rescind the policy.

(4) Discovery of material misrepresentation of any of the
following information concerning the named insured or any resident of
the same household who customarily operates an automobile insured
under the policy…”