Skip to main content
What's the difference between cancellation and non-renewal?

What's the difference between cancellation and non-renewal?

There is a big difference between when an insurance company cancels a policy and when it chooses not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except:

  • If 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  • Your driver's license has been revoked or suspended.
Non-renewal 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 non-renewal 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 an 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 you shouldn't necessarily think the non-renewal is 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 and 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.

With Permission Insurance Information Institute, Inc. - ALL RIGHTS RESERVED -

Get an Online Quote 

TMC GROUP HAS JOINED THE EPIC FAMILY OF COMPANIES

Experience the same high-touch, local support from the TMC Team you know with the added power of national scale. 

As one EPIC company, we offer expanded Risk Management, Property & Casualty and Employee Benefits services to our clients. To learn more about the benefits of the the partnership, read the press release for further details.

Visit our website at www.epicbrokers.com or click through the links to several of our individual disciplines listed on the right.

Sign up for our Email Newsletter

© Total Management Corp., 2013 Powered By: Insurance Web Designs   webmail login