Auto Insurance

Details of the differences between auto policy non renewal and cancellation

It’s actually very important for you to have an insurance policy whether its life insurance, health insurance or automobile insurance. Depending on your requirement and necessity you can choose any type of insurance for you or your family that would fetch you a lot of benefits to handle any issues that might arise in the future.

Know why is your insurance policy not renewed?

There are two reasons by which your insurance policy is not renewed. In the first case, when the company cancels the policy and the other one, you don’t wish to renew the policy.

Auto insurance cancellation:

Actually, the insurance companies cannot cancel the insurance policy which is actually active for more than 60 days until

  • The person had failed to pay the premium.
  • When you made misrepresentations on your application or involved in any kind of fraud actions.
  • When the driving license has been suspended.

Auto insurance nonrenewal:

When your insurance policy gets expired either you or your insurance company can decide on not renewing the policy. Before your insurance policy has been dropped it’s the responsibility of the insurance company to inform you regarding the notice period and reason for dropping your policy. The notice period and rules followed by various insurance companies might vary from one state to another. Sometimes the insurance company might just have several reasons to drop off your policy and you might not be aware of the reasons for it. These companies can drop off certain policies of insurance type or can write a few policies.

There are reasons from your side as well which might end up the insurance companies on non-renewing your policy especially when you may cause risk to the company such as drink and drive. This would definitely cause non-renewal for your insurance policy. Whenever you got to know that your policy isn’t been renewed and wish to get an explanation on why it happened you can actually call to the insurance companies’ consumer unfair division. They might help you in this regard and if at all you are not satisfied with the response from then, you can directly go to the state insurance department.

One of the most important points which you need to remember is that if your insurance policy hasn’t been renewed by a particular company you can opt for a new insurance company and it doesn’t have any right to charge you more because of it.

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