What’s the Difference Between Auto Policy Cancellation and Non-Renewal?

There’s a difference between an insurance company canceling a policy and choosing not to renew it.

Learn why your Auto Insurance or Commercial Auto policy might not be renewed.

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  • Your driver’s license has been revoked or suspended.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 Insurance Non-Renewal

You or your insurance company can decide not to renew the policy when it expires.

What you need to know:

  • 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.
  • Nonrenewal can also be due to your record or your actions. Driving drunk or doing something else that considerably raises the insurance company’s risk would be cause for non-renewal.

Call the insurance company’s consumer affairs division if you’ve been told your policy is not being renewed and you want a further explanation or think the reason is unfair. Contact your state insurance department if you don’t get a satisfactory answer.

Note: Nonrenewal at one insurer doesn’t necessarily mean you’ll be charged a higher premium at another insurance company.

Source: Insurance Information Institute

Read Other Blog Posts

Drowsy

Preventing Drowsy Driving

Every year, the National Sleep Foundation organizes Drowsy Driving Prevention Week to raise awareness about the dangers of driving while fatigued.
Smoke Detector

Daylight Saving Time Change: A Perfect Reminder to Check Your Smoke and CO Detectors

Daylight savings time is a perfect opportunity to keep your home safe by checking your smoke and carbon monoxide (CO) detectors. Time change days are memorable markers, making it easy to establish this habit without any extra reminders.
Flooding

Why Flood Insurance is Essential: Lessons from Hurricanes Helene and Milton

The devastating impacts of Hurricanes Helene and Milton have shown that flood risk isn’t limited to coastal areas. These storms have highlighted a crucial gap that individuals and businesses need to be aware of: flood damage is generally not included in typical home, condo, renters, or commercial property insurance, making a separate flood insurance policy essential for true protection.
Deer

Defensive Driving to Avoid Deer Collisions

With deer mating season in full swing from October through December, drivers face an increased risk of collisions. As deer are more active, especially around dawn and dusk, habitat loss has pushed them closer to roadways. Here’s how defensive driving can help you avoid an accident.
Massahusetts DIA Seal

MA Dept of Industrial Accidents New Notice Requirements

The Department of Industrial Accidents (DIA) has revised the Notice to Employees and has established new notice requirements. On or before September 16, 2024, all employers must utilize and repost the revised Notice to Employees poster.
Driving Car

Factors Affecting Your Car Insurance Rate

The cost of auto insurance is influenced by a wide range of factors. Together, these variables shape the overall cost of auto insurance. With this in mind, it can be helpful to better understand how the following elements may impact your rates:
Insurance Policy

Why Personal Liability Insurance is Essential for Homeowners, Condo Owners, and Renters

An essential part of home, condo & renter coverage often overlooked is personal liability insurance, which provides financial protection if you’re legally responsible for causing bodily injury or property damage to another person, both on and off your property.
Spam Phishing Scam

Recognize Spam and Phishing Emails

As more of our daily lives move into cyberspace, hackers, cybercriminals and spam bots may lurk behind every new message that shows up in your inbox. Even robust spam filters may not be able to catch every unwelcome email. Fortunately, you can act as an additional line of defense for yourself and your electronic devices by understanding the warning signs of spam and phishing emails.
Distracted Driving

How Distracted Driving and Texting Impact Your Auto Insurance Premiums

One major reason for auto insurance premiums going up is the rise in distracted driving, especially texting while driving. Distracted driving has become a leading cause of accidents, pushing up costs for insurance companies and, ultimately, leading to higher premiums for all drivers.

Visit Our Auto Insurance Page

Auto Insurance

At Murphy Insurance, we are here to assist you in obtaining the appropriate auto insurance. Choosing the appropriate auto insurance coverage can be overwhelming. Every insurance company has its unique offerings, making it challenging to compare options effectively. That’s where we shine. We simplify the process by helping you evaluate provider and policy choices, seek out discounts, and optimize your car insurance within your budget constraints. Ultimately, our goal is to provide you with peace of mind, knowing that you and your loved ones are well-protected.

Visit Our Commercial Auto Insurance Page

Commercial Auto Insurance

Commercial auto insurance can provide protection for any automobile used by your business. It can apply to a single car or to an entire fleet of vehicles and protects your company and employees driving company vehicles in the event of an accident. A policy can be adjusted to meet the coverage needs that fit your company and its vehicles. At Murphy Insurance, we are here to assist you in obtaining the appropriate commercial auto insurance for your business.