A notice of Nonrenewal isn’t the same as a Cancellation Notice. An Insurance company can decide to nonrenew any policy when it comes up for renewal however there are several states that allow an insurance company to nonrenew only after the policy has been in force for one year or longer.
A notice of nonrenewal means the insurance company is no longer willing to sell the same insurance product to a customer. It could mean an insurance company is no longer offering that line or type of insurance product or that an insured no longer qualifies under the companies underwriting rules to be offered the same insurance contract.
A notice of nonrenewal will be sent when an insurance company has a different program an insured qualifies. Sometimes the notice of nonrenewal is great news for an insured, because if may mean they are being offered a preferred insurance product. Generally, an offer of the new insurance and the type or product will be offered, at the same time a nonrenewal notice is issued.
If the reason for the nonrenewal is negative and a new offer of insurance it offer it will generally be a much higher premium. Sometimes, the company will not have an insurance product to offer a customer and doesn’t offer any replacement insurance.
An Auto insurance policy holder may receive a nonrenewal notice if they have:
- Too many claims for at-fault accidents have been made.
- A member of the household is convicted for driving under the influence.
- A member of the household receives too many traffic citations during the last three to five years.
Insurance is a contract and the company has a right to look at the risks they are willing to insure. When an auto insurance carrier decides not to renew a policy, it must send a notice. State laws vary, but normally the insurance company must give between 10 and 30 days’ notice of nonrenewal. Some notices of nonrenewal may provide the reason the insurer decided not offer a policy again but the notice may not provide a reason. If the reason for nonrenewal isn’t stated in the notice of nonrenewal and an insured wants it, the best thing to do is request it in a written letter to the insurance company.
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- Are You A High Risk to Your Auto Insurance Company?
- The Price of Driving Drunk
- Social Host Liquor Liability (Are You Having A Party?)
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