What to do if an Insurance company refuses to renew your policy?
Every year millions of auto drivers renew their auto insurance policies. They pay yearly and half-yearly payments of auto insurance premiums. But in some cases, an auto insurance company refuses to renew the policy of its customers after the renewal period of the insurance policy.
Sometimes an insurer can cancel your renewal and reject your policy even if you have a good driving history. You will need to shop for a new auto insurance policy.
When your auto insurer refuses to renew your car insurance policy then you have no other option than buying a new insurance policy from the other insurance company. There are different reasons to cancel the policy before the expiration and/or non-renew an auto insurance policy.
Difference between cancellation of an insurance policy and non-renewal of insurance policy
- Your policy may be cancelled if you default in your premium payments. It may also be cancelled if you provided false information at the time of the insurance application. .
- Suspension of driver’s license also leads to the cancellation of an auto insurance policy.
- Bad driving history is the biggest cause of the non-renewal of an insurance policy. If drivers get speeding tickets and driving history includes a number of accidents then the insurer can refuse the customer to renew the insurance policy. The insurer can also refuse to renew the policy if the driver has been arrested by the police when the driver broke laws while driving. Drivers with accidents in their driving history are considered riskier by the insurance agents so they don’t want to renew their auto insurance policy.
- In some cases insurance companies refuse to renew the auto insurance policy without any fault of the customer when the insurance company stops doing business in a particular state. If your state has a past record of hurricanes then your insurer can charge higher rates of insurance premiums. These are some reasons for the non-renewal of your insurance policy. It can also be seen in the areas of states where damage due to hurricanes is not much.
- If your insurance agent leaves the insurance company then the insurance company may refuse to renew the insurance policy to the customers of that insurance agent.
- If car insurance companies face losses in a specific market then also they may decide not to renew the auto insurance policies.
- Sometimes insurance companies offer non-renewal policies when they have insured and there are many drivers. In some circumstances, the carrier will sell some part of their business to other companies when they find risk in a particular market.
Get knowledge about your insurance rights
- Different insurance companies renew auto insurance policies under different rules and regulations. It is mandatory to send a notice of an auto insurance policy renewal before the expiry of your insurance policy in written form. The time limit to send the notice of renewal of an auto insurance policy is different for different auto insurance companies. In some states, insurance companies demand the notice of renewal of an insurance policy, 30 days before from the period of expiry of an auto insurance policy. Some insurance companies give relaxation to send notice by extending the notice period from 30 days to a minimum of 45 days and a maximum of 60 days before the expiration of an auto insurance policy. If your insurer refuses to renew the insurance policy then the insurer will send you the reason for not renewing the insurance policy in written form. There may be many reasons for non-renewal of an auto insurance policy such as accidents in driving history, too many speeding tickets, crime rates increase in your state, etc. But it is mandatory for insurance agents to provide you the reason to refuse to renew the insurance policy.
- When your auto insurance company refuses to renew the insurance policy then you have an option to buy an insurance policy from other auto insurance companies. You must check and compare auto insurance quotes from different insurance companies to get the cheapest insurance policy. Before purchasing an auto insurance policy you must ask the insurance agent about the renewal policies.
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