Non-Renewal and Your Car Insurance
Getting a non-renewal notice from your auto insurer can feel like a bad break-up. There are a lot of questions: What does non-renewal mean? Is it bad? Did I do something wrong? We’ll help you get this figured out and offer some suggestions on how to proceed from here. Don’t worry.
What is a Non-Renewal?
First of all: Non-renewal, in the world of car insurance, means that your car insurance company has decided they do not wish to insure you anymore. That means, once your current policy expires: that’s it. You can still get insurance somewhere else, but your current insurer is bowing out.
Most states require that your insurance company notify you in writing of their intent forty-five days prior to the end of your policy, so you should have plenty of time to shop around and find something new.
Why Do I Have a Non-Renewal Notice?
Maybe you didn’t talk enough? Didn’t appreciate them enough? Didn’t show them that you cared? There are several reasons you might receive a notice of non-renewal from your insurer. Typically your insurer will notify you in a written letter that they do not intend to renew your policy and will include their reasons for doing so.
Some of the most common reasons include:
- Claims: Multiple at-fault accidents and claims can warrant a non-renewal of your car insurance policy
- Moving Out of State: Not all insurance companies operate in every state. Some insurers only operate in a small handful of states. For example, if you made a change in your address on your policy to a state in which your insurer does not operate, this could be the cause of your non-renewal.
- Driving Record: If you have a DUI, DWI, reckless driving offense, or a number of other speeding violations, your insurer may choose to non-renew your policy, depending on their acceptance criteria
If you have received a non-renewal notice and disagree with their reasoning, give your insurer a call. It may have been sent in error, there may be a problem with your file, or you may even be able to sweet talk them into giving you another chance. Just remember that insurance companies in the US have to file their underwriting criteria with the state. That means that sometimes they can’t give you another chance – it’s against their regulations. The ultimate rejection.
I’ve Received a Non-Renewal Notice. What Now?
Bummer. If there’s no going back and that insurer won’t issue you another policy, take it as a blessing in disguise. It’s time to start looking for a new insurer. You may have been paying too much with that company anyway, or another company may offer you higher coverage for the same price. Plenty more fish in the sea.
Whatever you decide, you better get researching straight away. Being without insurance, even for a brief period of time, counts as a lapse in coverage. A lapse could cost you a lot of money on your car insurance in the future. You don’t need to start your coverage right away, you could set up your new coverage to take over when your current policy expires. If you’d rather just get a new policy sorted, be sure to cancel your existing policy after your new policy is set to begin. You’re better off without them, right?
If you have received a non-renewal notice or think you may be about to receive one, Compare.com is here to help. We make it easy to compare car insurance policies side by side. That way, you can compare different prices and coverage options to best suit you, your budget and your needs. Get a free quote today and see what’s out there.