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  • Your driver’s license has been revoked or suspended.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

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.
Apartment living room

Keep Your Home Safe While on Vacation

Taking a trip and exploring the world is fun, but leaving your home unoccupied has some risks.  Before departing, protect your property from accidents and criminals by considering the following precautions.
Male teen driver

5 Tips for Adding a Teen to Your Auto Policy

If your teen is approaching driving age, it may be time to start thinking about your plan for adding them to your auto insurance policy. Here are five tips to consider when adding a teen to your auto insurance policy.
Night driving

Understanding the Risks of Speeding

According to NHTSA data, speeding kills more than 12,000 people behind the wheel each year, contributing to nearly one-third (29%) of all traffic fatalities. With this in mind, it’s important to understand what causes speeding and how to prevent it.
Mold

Keeping Mold Out of Your Home

Mold not only damages your property, but it can also cause serious health complications after long-term exposure. With this in mind, try these prevention tips to keep mold out of your home.
Hacker

Cyber Risk Exposure Scorecard: Assess your risk

Cyber incidents have become increasingly prevalent, impacting organizations of all sizes and industries. As these incidents continue to rise in both cost and frequency, organizations must take steps to address their cyber exposures and bolster their digital security defenses.
Shipping dock

Exposing Double Brokering: Safeguarding Your Freight Against Deceptive Schemes

In the landscape of global commerce, the logistics industry serves as the backbone ensuring that goods reach their destinations efficiently. Yet, amidst the complexities of this intricate network lies a threat known as double brokering, a freight fraud scheme that can leave companies vulnerable to financial loss and operational disruption.
Fireman

The Crucial Role of Disaster Recovery Plans and Insurance Solutions in Protecting Your Business

When preparing for disasters, the significance of comprehensive disaster recovery plans and understanding insurance solutions cannot be overstated. These two pillars serve as crucial safeguards, offering businesses resilience against unforeseen challenges and ensuring continuity in the face of adversity.

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.