How to find new auto insurance after non-renewal?

Car insurance non-renewal occurs when your insurer decides not to renew your policy after its term. A non-renewal may be upsetting, and you’ll need to find new coverage, but your rates won’t necessarily rise. It’s also distinct from mid-policy cancellation, which is a more severe issue.

new auto insurance after non-renewal

When can an auto insurance non-renewal happen to me?

Your auto insurance company may amend your coverage at the end of your term. It has the option of renewing the insurance as is, changing the premiums may charge for coverage, or not renewing it at all. If your firm does not renew your insurance, it must notify you in writing a certain number of days before the expiration date. This is so you can find new insurance. The exact time varies by state: 45-60 days in New York, 30 days in Oregon. A cause for non-renewal is usually included in the written notice, as required by law.

Why was my Auto Insurance not renewed?

Insurers may refuse to renew your policy for several reasons. It now deems you a riskier driver than when you bought coverage like a DUI or many minor moving infractions like speeding tickets.

Common Reasons for Car Insurance Nonrenewal

  • Multiple insurance claims, particularly in the case of at-fault collisions
  • Multiple tickets are available
  • DWI (driving while intoxicated)
  • Purchased a new vehicle
  • You relocated, particularly across state borders

Your insurance company may cancel your policy after the term for something positive like buying a new car. You can even be dropped without your fault. Car insurance companies continuously update their risk profile, so your coverage may cancel your coverage without any change in your circumstances. If your city or state’s insurer has decided to discontinue selling insurance, You can only acquire a quote from another insurance company.

Non-renewal of auto insurance carries no intrinsic consequence. You won’t necessarily pay more rates at another company. If your insurer drops you for a significant violation like a DUI, you should expect a rate increase regardless of who insures you.

If my car insurance isn’t renewed, what should I do?

Your insurance company’s letter of non-renewal will explain why it chose not to renew your coverage. If you feel the non-renewal was unfair, you can usually contact your insurer for clarification.

Some states limit the reasons insurers might refuse to renew coverage. In New York, for example, insurers cannot deny you coverage due to your age. When your insurer refuses to renew your policy, you can contact your state’s insurance department to explain and submit a complaint.

After being nonrenewed, you’ll likely need to get new coverage. Car insurance is mandatory almost everywhere, and non-renewal is not allowed. Your non-renewal notice will state when your current policy expires, so get a new policy in place before then. If not, your insurance will lapse.

Check with several insurance providers to discover which one has the best rates—you may save money by switching firms. A recent accident or a new driver in the family may affect your vehicle insurance costs. If you’ve had multiple costly incidents, such as at-fault accidents, you may need to consider nonstandard insurance coverage.

Cancellation vs Non-renewal

Canceling your auto insurance is a much more serious matter than not renewing it, and you may be punished. Many states restrict why an insurer can cancel a policy mid-term – usually after the first 60 days.

  • Failure to pay for coverage
  • Suspended or revoked license
  • No car registration
  • Lying on your insurance application
  • Fraudulent insurance claim

Regardless of the cause, you should notify your insurance carrier immediately. You’ll only have a few weeks to resolve the issue before your insurance coverage expires, compared to months after a non-renewal. Unlike a non-renewal, your new insurer may punish you if your previous policy was canceled. Also, paying your bill plus a late charge may be enough to reinstate coverage if the cancellation is due to nonpayment.

Click here to learn more about auto insurance or get your coverage now.