Cancellation - Reasons for Letting You Go
An insurance company cannot cancel a policy that has been in effect for more than 60 days except for the following situations:
- You failed to pay the premium
- You committed fraud or misrepresented details on your insurance application
- You had your driver's license suspended or revoked
These are all items you can manage yourself and by avoiding these situations, can keep your policy clear from cancellation.
Non-renewal - Changes upon Expiration
Upon the date of your auto insurance policy expiration, you and your insurance company each have the option to go your separate ways. Regulations might vary by state but most require your insurance company to give you advanced notice and details regarding the non-renewal before the expiration date. Non-renewal can be caused by something you did or just changes the insurance company is making.
For example, an insurance company might determine it no longer is writing policies like yours or is just taking on fewer auto insurance policies in your area. In the case of drunk driving or other risky behavior on your part, your insurance company my raise your premium or even choose to not renew your policy.
If you have an auto insurance policy cancelled and you believe the reason is unfair, you should contact the consumer services division of the insurance company. If after that conversation you are still unhappy with the non-renewal justification, contact your state's insurance department.
Reference: www.iii.org
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