What are the differences between nonrenewal and cancellation of a policy?
You or your insurer can choose not to renew your auto insurance policy after it expires for a variety of reasons. You might decide not to renew your policy if you find a better deal somewhere else or weren’t happy with the service you were receiving. An insurer may not renew your policy if you did something to substantially increase their risk to cover you–or if the company decides to write fewer policies in your area. Cancellation, on the other hand, is more serious. According to the I.I.I., insurers cannot cancel a policy that’s been in force for more than 60 days unless: You fail to pay your premium You defraud the company Your driver’s license is suspended or revoked Cancellation of your policy may also make it harder to find insurance in the future, thus forcing you to buy a high-risk policy for a more expensive premium.
