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Car Insurance Non-Renewal Vs. Cancellation - Insurify

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Why you can trust Insurify

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Anna Baluch

By: Anna Baluch

Edited by Jackie Cohen | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

If you receive a car insurance non-renewal notice, don’t panic. While a non-renewal may force you to change car insurance companies, it doesn’t necessarily mean your rates will increase. You can look at it as an opportunity to evaluate your car insurance needs and potentially save money on your premiums.

With Insurify, it couldn’t be easier to compare car insurance quotes instantly. If you’re facing a non-renewal, you can use this handy tool to choose the right car insurance policy for your unique budget and needs. Rest assured, there are no fees or sign-ups involved.

Quick Facts

  • A non-renewal is when your car insurance company decides to discontinue your coverage once your policy ends.
  • If your auto insurance provider decides not to renew your policy, you’ll receive a non-renewal notice that will explain the reason.
  • After you receive a non-renewal notice, it’s important to shop for auto insurance coverage with a different company so you can drive legally and avoid a lapse in coverage.

What is car insurance non-renewal?

What is car insurance non-renewal?

Non-renewal occurs when a car insurance company decides not to renew after a policy expires.

A non-renewal in the car insurance industry means that your car insurance provider has decided they no longer want to insure you. If you face a non-renewal, your current policy will end once your policy period expires. The good news is you can purchase auto insurance elsewhere.

Since most states require that car insurance companies notify policyholders about their non-renewal in writing at least 45 days prior to the end of their policies, you should have enough time to shop around, compare options, and purchase the ideal replacement car insurance plan.

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How a Non-Renewal Works

If your car insurance company decides to discontinue your policy for any reason, it will send you a non-renewal notice. In most cases, these notices are sent 45 before the non-renewal actually goes into effect.

You can expect your non-renewal notice to explain why your car insurance provider does not want to renew your policy. If you’d like more details or believe the non-renewal was unwarranted, don’t hesitate to reach out to your insurer.

As soon as you find out you’ve been nonrenewed, it’s a good idea to find coverage from a new insurance company. Since auto insurance is required in most states and there’s no grace period after non-renewal, this should be your top priority.

When you read your non-renewal notice, take note of the expiration date of your current car insurance. Make sure your new policy takes effect before then. Otherwise, you’ll have lapsed coverage and may face serious consequences if you get into an accident without insurance.

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Common Reasons for Car Insurance non-renewal

There are a number of reasons an auto insurance company may decide to not renew your policy. If you’ve been convicted of a DUI or DWI, your insurance provider might send you a non-renewal notice. The same holds true if you’ve received too many speeding tickets or have been involved in multiple at-fault accidents in a short period of time.

If your insurance provider deems you too risky of a driver for any of these reasons, a non-renewal is highly likely. Also, if they notice you put false information on your insurance application or have a track record of nonpayment or late payments, they probably won’t want to extend coverage to you.

In addition, if you move to a new state and your auto insurance company doesn’t operate there, they won’t be able to renew your policy. Lastly, if they no longer offer a certain type of coverage you need, such as rideshare insurance, a non-renewal will occur.

See More: Cheap Car Insurance

What to Do If Your Car Insurance Isn’t Renewed

As soon as you find out your car insurance company will not renew your policy, you’ll need to find a new provider. Since there are countless options at your disposal, research multiple auto insurance companies. Compare the rates, coverage options, terms, and discounts of each one.

While you shop around, keep in mind that changes to your driving history or coverage may impact your car insurance rates. If you’ve recently received a few speeding tickets, you can expect to pay more than someone with a clean driving record, free of traffic violations.

By finding a policy from a different car insurance company, you can avoid a lapse in coverage and won’t be uninsured at any time. If you do drive without insurance and cause an accident, you’ll be on the hook for all the medical and repair bills, which can add up to thousands or even tens of thousands of dollars.

Car Insurance Non-Renewal vs. Cancellation

A car insurance cancellation is far more serious than a non-renewal. In fact, you might be penalized if your auto insurance policy gets canceled. Your car insurance company may choose to cancel your plan if you don’t have a valid vehicle registration, are driving with a suspended or revoked license, or fail to pay for your coverage.

Other common reasons for an auto insurance cancellation are fraudulent insurance claims or medical conditions like epilepsy that make you an unsafe driver. No matter why a car insurance provider is canceling your policy, reach out to them immediately to resolve the issue. You’ll only have a few weeks to do so, so you must act quickly.

See More: Best and Worst Sites to Compare Car Insurance

Make Sure You’re Covered After a Non-Renewal

Just because you receive a non-renewal notice doesn’t mean you won’t be able to obtain car insurance. You will, however, need to shop around and find another provider that will offer you coverage.

Even though a non-renewal isn’t as serious as a cancellation and doesn’t always result in higher premiums, it’s important that you take action and find an alternative insurer immediately so you can avoid a lapse in coverage and legally drive a motor vehicle.

Frequently Asked Questions

  • Yes, you can still purchase an auto insurance policy after you receive a non-renewal or cancellation notice. But the reason your original plan was nonrenewed or canceled might make it more difficult for you to obtain new coverage. If you have too many speeding tickets or were convicted of a DUI or DWI, you’ll be considered a high-risk driver and may therefore get denied for coverage or be forced to settle for higher premiums.

  • If you receive a notice of non-renewal, contact your car insurance company for more details. They can explain their stance, and you may argue your case if you believe it’s unfair. If you don’t receive the type of response you’re hoping for, you could always discuss the situation with the insurance department in your state.

    In the event you do think your non-renewal was warranted, don’t wait to shop for a new insurance policy. Your goal should be to lock in car insurance from a different auto insurance provider and ensure it goes into effect before your current coverage ends.

    This way, you can avoid a coverage lapse and the risk of driving illegally or getting into an accident without car insurance. Remember to explore and compare all your options so you can make an informed decision.

  • While every state is different, most states require a car insurance company to notify you of non-renewal in writing. It might also have to inform the Department of Insurance or a similar regulatory body in the state.

    When it comes to timing for non-renewal notices, this varies as well. In Nebraska, for example, auto insurance providers must send their notices 60 days before a policy expires. In Ohio, it’s 45 days’ notice. By notifying you ahead of time, your insurance company is giving you enough time to find a new policy.

  • There’s a chance you’ll receive a non-renewal notice that you feel is unwarranted. If this happens, don’t hesitate to reach out to the auto insurance company directly. Once you do, be prepared to share any information or documentation to explain your stance and prove any incorrect statements.

    If the provider won’t renew your policy despite your dispute, you can involve your state insurance agency and ask for an insurance hearing, depending on where you live. Keep in mind that in some states, you can only dispute a non-renewal if the insurer failed to follow the state’s guidelines for the non-renewal process.

    You might also have a limited amount of time to dispute the renewal. Do some research to find out the time period in your state so you don’t miss the deadline.

  • Contrary to popular belief, an auto insurance non-renewal is not the same as a cancellation. A non-renewal is when your insurance company discontinues your policy at the end of your insurance coverage period. Cancellation, on the other hand, is usually when your insurance provider cancels coverage in the middle of the policy term.

    Regardless of if the auto insurance provider decides to not renew or cancel your policy, you’ll receive a written notice with an explanation in advance. The time frame for this notice will depend on the unique circumstances and laws in your state.

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  • Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.

Anna Baluch
Anna Baluch
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Insurance Writer

Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.

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