If you are facing auto insurance non-renewal, most likely you first learned of it through a letter in the mail from your insurer. This letter might have been expected, or could have come totally out of blue. Before we can elaborate on what actions you need to take, first it’s important to explain what exactly non-renewal is.
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Your Insurance Contract Is Ending
In a matter of weeks or months, your auto insurance policy will expire. The auto insurance company has decided not to renew your auto insurance past its expiration date. It is imperative that you are aware that after the effective end of your policy, you will no longer have auto insurance unless you take action. This means you will be driving illegally and taking great financial risks if don’t address this situation.
The date your policy ends should be indicated on the non-renewal letter. If still unaware what this date is (or didn’t receive a letter), contact your auto insurance company.
Why Your Auto Insurance Is Not Being Renewed
There could be a number of different reasons for this. Perhaps the insurance company feels that you represent too large of a risk – perhaps you have submitted a couple claims during the last policy period. Or, it could be that you have moved or live in an area that auto insurance company deems too risky and undesirable (too many stolen vehicle or accidents in your neighborhood).
Also, if you move to a different state, the auto insurance company may decide to not renew your policy. Different states, have different insurance laws and regulations, and one company that operates in Ohio may not do business in Texas (and vice versa).
It is also entirely possible that you have not done a thing – it is the auto insurance company that has changed. That may not offer the insurance policy type that currently covers you, or it’s possible that they have decided to drop auto insurance coverage all together.
The letter that you have received in the mail should state the reason for non-renewal. If the reasoning isn’t clear, contact your insurer.
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Non-Renewal Is Not The Same As Cancellation
Car insurance cancellation is more serious than non-renewal. It is effective immediately versus at the end of your policy period for non-renewal. This means that when your car insurance policy is cancelled, you don’t have any auto insurance (there is no grace period) and cannot legally drive until you purchase auto insurance from another company.
Auto insurance companies generally cancel your insurance policy due to some more serious transgressions on your part. If they feel you lied or were dishonest on your insurance application, your policy will be canceled. If you received a DUI ticket or another serious traffic offense, its possible the auto insurer may decide to cancel your insurance. Also, if you are late on your premium payments, if your license is suspended or revoked, the auto insurance company can cancel your insurance.
What You Need To Do
If you feel that your auto insurance is being non-renewed because of an error, you need to get in touch with your insurer. For example, perhaps they mistakenly believe that your address has changed to one that is now out of state (not common, but possible).
You can also contest the auto insurance company’s decision of non-renewal. Visit your state’s department of insurance website (all 50 states have one) and learn what your options are at this point. The website will contain further instructions about what you need to do. More than likely you can file a complaint against the insurer.
The non-renewal may not be an error, in which case you need to purchase a new auto insurance policy. Your best chance of finding the cheapest car insurance available is to receive multiple online quotes. Fill out quote forms here at Cheap Quotes Car Insurance and get the cheapest auto insurance possible. Don’t delay, as your auto insurance is going to expire very soon.