There is a big difference between Insurance Cancellation and Nonrenewal. Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:
- You fail to pay the premium.
- You have committed fraud or made serious misrepresentations on your application.
- Your driver’s license has been revoked or suspended.
Nonrenewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Depending on the state you live in, your insurance company must give you a certain number of days notice and explain the reason for not renewing before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company’s consumer affairs division. If you don’t get a satisfactory explanation, call your state insurance department.
The company may have decided to drop that particular line of insurance or to write fewer policies where you live, so the nonrenewal decision may not be because of something you did. On the other hand, if you did do something that raised the insurance company’s risk considerably, like driving drunk, the premium may rise or you may not have your policy renewed.
If your insurance company did not renew your policy, you will not necessarily be charged a higher premium at another insurance company. Keep in mind these insurance cancellation and nonrenewal difference. If you want to compare insurance quotes, please visit EINSRUANCE.
© Insurance Information Institute, Inc. – ALL RIGHTS RESERVED –
This content is used with the express permission obtained from the Insurance Information Institute: To request use of our content, email [email protected]