Call Us (888) 513-8784

In Omnia Paratus…"Ready for all things!"

Auto Insurance AUTO
Read More
Boat Insurance BOAT &
Read More
Business Insurance BUSINESS
Read More
Homeowners Insurance HOME
Read More
Life Insurance LIFE
Read More
Other Insurance OTHER
Read More

It is time to consider a new auto insurance policy. You may hear terms such as policy cancellation and non-renewal. What do they mean? Are there implications to these that you should know about when it comes time to renew?image of auto policy document

Car insurance cancellation and non-renewal are two different things. Both are important to understand as you go into changing your policy. There are a few things you should consider when it comes to choosing how to handle an existing policy, too.

What Is Cancellation?

Cancellation occurs when the insurer decides to terminate your car insurance. It is possible for them to do so for most any reason during the first 60 days of maintaining coverage. However, after that first 60 days, there are fewer opportunities for this to happen. The insurer might cancel your policy at any time if the following occurs:

  • You do not make your payments on time. You miss a premium payment. Sometimes, insurers allow leeway and one forgiveness payment.
  • Your driver's license is no longer in good standing. The department of motor vehicles revokes or suspends it for any reason.
  • You commit fraud in some way. You misrepresented yourself in some way when applying for or obtaining auto insurance.

When this happens, the insurer has the right to cancel the policy. This means you do not have coverage. You cannot file a claim. In many cases, continuing to drive without car insurance is breaking state law.

What Is Nonrenewal?

Either you or your car insurance company can decide not to renew the coverage after the policy expires. Most often, the insurer will send a letter in the mail outlining its decision not to renew your policy. The insurer may or may not have to provide you with a reason for not renewing your policy. They will likely give you a number of days until the policy and coverage are no longer applicable. State laws govern the actual process here.

There are many reasons this may occur. For example, the insurer may decide not to cover you because of high-risk situations, such as drunk driving. If you have multiple tickets while insured by the agency, it may no longer wish to cover you. It has the right to do so.

Auto insurance companies do not cancel policies often. There generally is plenty of reason why this may occur. But, remember, you can elect to not renew your policy, too. You may wish to do this if you are looking for different coverage. It may be beneficial if you find a policy with lower costs or better coverage levels, too. Call and talk to an insurance professional about your policy at 888-513-8784.

Additional Information: The Top 5 Mistakes Drivers Make When Getting Auto Insurance Quotes or What you Need to Know about Freezing Rain when Driving

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014

View Mobile Version
Pioneer State Mutual
Michigan Insurance
elephant insurance logo
© Copyright. All rights reserved.
Powered by Insurance Website Builder