Our Blogs

What is a cancellation on an automobile policy?

A cancellation can be the decision of either the insured or the insurer, but can happen before the end of the term on a policy. Typically, the rule is that insurance companies cannot cancel a policy that has been active more than 60 days. Exceptions to this rule are consequent to a pretty significant fault on the insured’s part. For example, if you have misrepresented yourself to your insurance company, they can cancel your policy with a 30 day notice. Other causes for cancellation include insurance fraud, getting your driver’s license revoked or suspended during the policy term, or failure to pay the premium. Steer clear of these mistakes and you shouldn’t have to worry about an unexpected cancellation.

 

What is a non-renewal?

Nonrenewal means that at the end of your policy term, it was decided that the insurance company will not continue providing coverage for another term. This can also be the decision of either the insured or the insurer. Typically, an insured will decide to non-renew their policy if the premium exceeds that of another company. A non-renewal based on the decision of the insurer happens due to your record or actions that considerably raises the company’s risk. An example of this would be receiving a DUI during your policy term. The insurance company can refuse to take on such a huge risk to avoid payout on a massive claim. Non-renewal can also happen as a result of an event that wasn’t your fault–such as an insurance company dropping a specific coverage or pulling business out of the state. The good news: Depending on the circumstances, a non-renewal does not always mean that another company will charge you a higher premium.

 

Insurance is a huge part of your life; you must have it. Receiving a notice of cancellation or non-renewal can be alarming– It’s important to make sure you keep your record clean to help yourself out in the future. If this happens to you, start shopping around with different carriers immediately to insure you are consistently insured.

By: KayLynn P.

Search Insurance Coverages

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Filter by Categories
Business Coverage Req
Businesses
Personal Insurance
type

Be Confidently Insured

Contact Us
By providing a telephone number and submitting the form you are consenting to be contacted by SMS text message from IKKA Insurance Agency. Message frequency may vary. Message & data rates may apply. Reply STOP to opt-out of further messaging. Reply HELP for more information.
See our Privacy Policy https://ikkainsurance.com/privacy-policy/