Can your insurance company drop you after an accident?

It is possible, but highly unlikely, for an insurer to cancel a policy after one accident. If the accident results in a suspended driver’s license or is alcohol- or drug-related, however, there is a higher likelihood of the policy being canceled.
Next Up: Does your car insurance company report accidents to the DMV?
High-Risk Drivers

Insurance companies are in the business of making money, and they do so by hedging against risk. Just about every driver is in an accident at some point, so one accident is not likely to affect a policy much. If your recent driving record is dotted with other accidents, speeding tickets, moving violations and the like, you are categorized as a high-risk driver. Rather than dropping a high-risk policy, insurance companies often wait until such policies are up for renewal and either raise the premiums or simply do not renew them.
Do Not Drink and Drive

Nothing good comes from driving while under the influence of drugs or alcohol. Insurance companies are much more likely to cancel a policy of a driver who has been involved in an accident while driving impaired. Such drivers, if allowed to retain a driver’s license at all, can expect their car insurance premiums to skyrocket. If the car insurance policy is canceled, it is often extremely difficult to find a company that provides coverage to drivers with DUI or DWI convictions.