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There
is a big difference between an insurance company canceling a policy and
choosing not to renew it. 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- Your driver's license has been revoked or suspended.
Nonrenewal is a different matter. Either you or your insurance company
can decide not to renew the policy when it expires. Depending on the
state you live in, your insurance company must give you a certain number
of days notice and explain the reason for not renewing before it drops
your policy. If you think the reason is unfair or want a further
explanation, call the insurance company’s consumer affairs division.
If you don't get a satisfactory explanation, call your state
insurance department.
The company may have decided to drop that particular line of insurance
or to write fewer policies where you live, so the nonrenewal decision
may not be because of something you did. On the other hand, if you did
do something that raised the insurance company’s risk considerably,
like driving drunk, the premium may rise or you may not have your policy
renewed.
If your insurance company did not renew your policy, you will not
necessarily be charged a higher premium at another insurance company.
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