This is something you probably never had to think about much unless you had to deal with it personally – what the difference is between car insurance cancellation and non renewal. There's a definite difference between an insurance company canceling a policy and choosing not to renew it. Typically, car insurance companies cannot cancel a policy that has been valid for more than 60 days except for 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- Your driver’s license has been revoked or suspended.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
When your policy expires, either you or your insurance company can elect not to renew it. not to renew it. Your insurance company must give you a certain number of days of notice prior to the date the policy becomes invalid and explain the reason for not renewing before it drops your policy (the rules will depend on the insurer and the state in which you live).
Furthermore, there are other reasons an insurance company may decide to not renew a policy, and it may have nothing to do with you or something you did. For example, your insurer may have decided to drop that particular type of insurance or to sell fewer policies in the area where you live.
However, a non renewal can also be due to something you did. Doing something to significantly raise the insurance company’s risk on you—like get a D.U.I—would definitely be cause for non-renewal.
If you've learn that your policy is not being renewed, be sure to call the insurance company’s consumer affairs division They might be able to help you get a better explanation or if you think the non renewal was unfair. If you after you speak with them you aren’t satisfied, contact your state’s insurance department.
And if you are worried that you are worried that receiving a non renewal from one insurance company means you will be saddled with a higher rate in the future, note that this doesn't necessarily mean you'll be charged a higher premium at another car insurer.
If you have been injured in a car accident, or your loved one was killed by a negligent or reckless driver, Kalfus & Nachman can help. Our compassionate legal team can discuss your options and build your case. Every step of the way, we will answer your questions and aggressively uphold your right to a financial settlement. Drivers have a responsibility to obey traffic rules and to drive without distractions. This involves not using a smartphone. With the data showing increasing fatalities from cell phone use, it is important to seek representation as soon as possible after an accident to pursue justice from those responsible. Contact us today to schedule a free consultation.