What could possibly trigger cancellation of an insurance policy early on?

Receiving a traffic violation can indeed trigger the early cancellation of an insurance policy. Insurance companies assess risk based on a driver's history, and a traffic violation may indicate a higher risk of accidents or claims. As a result, insurers might choose to cancel the policy or refuse to renew it based on this increased risk.

Insurers often evaluate their clients’ driving records when they are up for renewal or after significant incidents. If a driver accumulates violations, particularly serious ones, it can lead to concerns about their driving behavior, prompting the company to take action to mitigate their own risk.

In contrast, the other choices typically wouldn't trigger early cancellation. Purchasing a new vehicle may require updating the policy but doesn’t lead to cancellation. Changing the premium plan might alter the terms of the insurance or the cost, yet it also does not imply cancellation. Renewing the policy early is generally a proactive step and doesn’t suggest a reason for canceling the coverage.