Courtesy of iii.org
There is a difference between an insurance company that cancels an insurance policy and chooses not to renew it. Learn why your insurance may not be renewed
Cancellation of car insurance
Insurance companies can not cancel an insurance that has been valid for more than 60 days except when:
- You do not pay the premium
- You have committed fraud or made serious incorrect information in your application
- Your driving license has been revoked or suspended.
Car insurance not renewed
Either you or your insurance company can decide not to renew the insurance when it expires. Your insurance company must notify you of a certain number of days' notice and explain the reason why you do not renew your insurance (the exact time frames and rules depend on the state in which you live).
There are a number of reasons an insurance company may choose not to renew an insurance policy, and it may not have anything to do with you personally. For example, your insurer may have decided to cancel that type of insurance or take out fewer insurances where you live.
However, a renewal may also be due to your registry or documents. Doing something to significantly increase the insurance company's risk — such as driving drunk — would be a reason for renewal.
If you have been told that your insurance is not renewed and you want a further explanation or think the reason is unfair, call the insurance company's consumer department. If you do not receive a satisfactory explanation, contact your state insurance department.
Please note that non-renewal with one insurer does not necessarily mean that you will be charged a higher premium with another insurance company.