Have you seen your driving record go up in smoke, only to learn that your insurer has cancelled your auto policy? It may be quite difficult to find a company that is willing to provide insurance down the road. And if you do find one, be prepared to pay the high premiums demanded of a high-risk driver.

A non-renewal means only that your company does not want to offer you a policy any longer — possibly because of your driving or claims record over the last three to five years. More than likely, you will find other insurers that are willing to provide insurance at a higher price.

Auto insurers may cancel your policy at any time if you fail to pay your premium, lose your driving privileges, or have not accurately reported the facts relating to your level of risk. A cancellation will make it hard to get insurance for a long time to come.

A driver who cannot find any insurance must resort to the assigned-risk pool and will be randomly assigned to a member company who must provide a policy. In most states, coverage is limited to the amount required by law. The premiums are set by the state, but they may depend on the driver's record and other specific factors.

If you are forced to enter the assigned-risk pool, the insurer must keep you for three years. However, you may want to shop for less expensive or more complete coverage from time to time. The longer your record is free of accidents and citations, the easier it will be to get insurance outside of the pool.

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any product. This material was written and prepared by Emerald. © 2013 Emerald Connect, Inc.