Non-Renewal and Your Car Insurance

April 29, 2016

Understanding a Non-Renewal of your Car Insurance Policy

What does non-renewal mean? Is it bad? Did I do something wrong? There are a lot of questions that accompany a notice of non-renewal from your car insurance company. We’ll help you get this figured out and offer some suggestions on how to proceed from here.

Financial data analyzing. Counting on calculator.What is a Non-Renewal?

Non-renewal, in the world of car insurance, means that your car insurance company has decided they do not wish to insure you following the date of your current policy’s expiration. Most states require that your insurance company notify you of their intent forty-five days prior to the end of your policy, but we recommend you check with your state’s insurance office just to be safe. There are several reasons you might receive a notice of non-renewal. 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 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 DUIs or DWIs, reckless driving offenses, or certain other moving violations, your insurer may choose to non-renew your policy. The types of offenses may change from company to company, so check with your insurer or local agent for details.

I’ve been dropped from my insurance. What now?

Start looking for a new insurer. Being without insurance, even for a brief period of time, counts as a lapse in coverage ;and 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), but if you choose to do so, be sure to cancel your existing policy after your new policy is set to begin.

Buying auto insurance can be a confusing and disoriented process. We want to make sure that our users can make informed choices about their car insurance, selecting from as many options as possible. Read our Auto Insurance Buying Guide to educate yourself before you start a quote.

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