There’s a difference between an insurance company canceling a policy and choosing not to renew it.
Auto insurance cancellation
Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:
- 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- Your driver’s license has been revoked or suspended.
Auto insurancnonrenewalal
You or your insurance company can decide not to renew the policy when it expires. Your insurance company must give you a certain number of days’ notice and explain the reason for not renewing before it drops your policy (the exact timeframes and rules will depend on the state in which you live).
An insurance company may choose not to renew a policy for several reasons, and it may have nothing to do with you. For example, your insurer may have decided to drop that particular type of insurance or to write fewer policies where you live.
However, nonrenewal can also be due to your record or your actions. Doing something that considerably raises the insurance company’s risk—like driving drunk—would cause nonrenewal.
