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What’s the difference between a cancellation and a nonrenewal?

April 26, 2017cancellation difference nonrenewal

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What’s the difference between a cancellation and a nonrenewal?

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A cancellation is when your insurance company terminates your policy for non-payment, fraud, or if your driver’s license is suspended or revoked. A nonrenewal is when the driver or insurance company chooses not to renew the policy when it expires.