Can My Insurance Drop Me?

There are really only two ways that your insurance carrier can drop your policy. They include, cancellation or non-renewal.

Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:

• You fail to pay the premium.
• You have committed fraud or made serious misrepresentations on your application.
• Your driver’s license has been revoked or suspended.

Non-renewal is a different matter. You or your insurance company can decide not to renew a policy when it expires for any reason except a reason that would be prohibited by law. In most states, an insurance company must give the policyholder a written notice at least 30 days prior to the end of the policy term if it intends to non-renew.

It is important to note that the non-renewal decision may not be because of something you did. A possible reason for not renewing include, the company deciding to drop that particular line of insurance or to write fewer policies in your state. On the other hand, if you did do something that raised the insurance company’s risk considerably, like driving drunk, the premium may rise or you may not have your policy renewed.

If your insurance company did not renew your policy, you will not necessarily be charged a higher premium at another insurance company.