Auto Insurance Policy Cancellation vs. Non-Renewal
Your auto insurance policy can come to a conclusion in two ways, either through policy cancellation or non-renewal. There is a big difference between these two types of policy terminations. Regardless of how your auto insurance comes to and end, it’s imperative that you find replacement coverage as quickly as possible so that you remain safely and legally insured.
If your auto insurance provider cancels your auto insurance, it will usually be for something significant. They can’t just cancel it at a whim. Basically, an auto insurance provider can only cancel your auto insurance policy if your license has been suspended or revoked; you haven’t paid the monthly premium; or it somehow comes to light that you falsified information on your auto insurance application. Those are, in the eyes of the auto insurance industry as well as the law, considered to be deal-breakers.
If your auto insurance provider decides to not renew your auto insurance policy, it is a different story: you can conceivably contest their decision. Auto insurers can choose non-renewal of a policy for different reasons: your location might be seen as undesirable; the type of insurance you’ve been paying for is no longer considered financially viable for the company, and they decided to discontinue that kind of auto insurance; or the company is dropping auto insurance altogether.
To learn more about auto insurance policy cancellation and non-renewal, and the differences between them, be sure to call or meet with a representative of your auto insurance provider. If you don’t currently have auto insurance but are looking around for some, be sure to ask about policy cancellation and non-renewal before you buy anything. Its important that you understand the basic rules and regulations of an auto insurance policy before you commit to it.