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Non-renewal or cancellation?


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Ending your auto insurance policy can happen in two ways, non renewal, and cancellation. There is a very big difference between the two, and both ways can be very stressful on your life. If your policy is ended due to non renewal, that simply means that our policy has come to its renewal period, and your insurer has decided to not renew your policy.


Having your policy end with non renewal usually means that you have become too much of a liability to the insurance company. Having your policy end with cancellation, simply means that your insurer has decided to cancel your policy for a number of reasons.


The most common grounds for cancellation are losing your license from suspension or expiration, failure to pay premium on time, and misrepresenting facts about your policy. Misrepresenting facts on your policy could mean that you lie about your driving history, claim history, or you lie about who has access to your vehicle.


If you find out that your insurance company chooses not to renew your policy, it will be no picnic, but it is better than cancellation. Non renewal simply means that your insurance company no longer wants you as a customer. Some reasons for non renewal could include too many claims filed for at fault accidents, on road traffic citations, or conviction of driving under influence.


Non renewal could happen for many other reasons, but those are the most common cases for non renewal. Your insurance company must give you between 10 and 30 days notice for non renewal. The reason for non renewal is usually said, but if it is not, you can request it.


After you find out that your policy has been cancelled by your insurer, it may be difficult to find an insurance company to sell you a policy. You can try to have your policy reinstated by your insurance company, but if they will not work with you, you will have to look elsewhere. If you lost your policy due to failure to pay your premium on time, your insurer can choose to reinstate your policy, usually only if you pay your premium up front.


Otherwise finding another insurance company to give you a policy, can be hard. There are insurance companies that give policies high risk customers, but chances are you are going to have a higher premium. To put it simply, if your policy is cancelled, chances are you will have to find another insurer for a higher premium.


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