To determine your next move, discover why your nonrenewal happened, what your rights are, the difference between a cancellation and a nonrenewal, and what next steps you might consider. 

What Is a Notice of Nonrenewal?

You may have a three-month, six-month, or annual auto insurance policy, and just like any other subscription, it needs to be renewed when its term ends. But you or the insurer can choose not to continue your policy, allowing it to end on the expiration date.  An insurer can also decline to renew portions of the policy. For example, in North Carolina, an insurer might decide not to renew your comprehensive and collision coverage if you have had several claims, even if some weren’t your fault. After sending a notice of nonrenewal, insurers in some states can renew your policy with another company in the same insurance group. 

Possible Reasons for a Notice of Nonrenewal

Some states set forth acceptable reasons for nonrenewal—and while a few states limit those reasons, others let insurers use almost any reason to decline your policy’s renewal. Some states have different requirements based on how long you’ve had the policy. For example, if the same company has insured you for five years in Illinois, the insurance company can nonrenew a policy within 30 days of expiration for one of 27 reasons. But if you’ve been with the company for fewer than five years, the company can cancel for almost any reason. Here are some of the reasons an insurer might not renew your car insurance policy. 

Your Medical Issues

An insurance company might not renew a policy if a driver in the household develops a physical condition such as epilepsy that could affect their driving and doesn’t have a physician’s certificate testifying to their ability to drive safely.

A policy may not be renewed if the driver has a history of traffic accidents, speeding violations, or convictions for motor-vehicle-related charges. Such charges could be driving under the influence of alcohol or drugs, leaving the scene of an accident, or homicide or assault related to operating a vehicle. Nonrenewals may also occur due to points accumulated on your license or having reported several cars stolen.

You may also find your auto policy is not renewed if you have forfeited (jumped) bail—or if you have been convicted of a felony, criminal negligence resulting in death, auto theft, or a number of other charges.

License Suspension or Revocation 

If your car registration or your license has been suspended or revoked, an insurer may nonrenew your policy. 

Fraud or Misrepresentation

If your insurer finds out that you lied or intentionally misrepresented information when obtaining the original policy or your driver’s license, your policy might not be renewed. It might also not be renewed if you filed a false or fraudulent claim or helped someone else do so. 

Auto Issues

The insurer may not renew a policy if a vehicle is defective, hasn’t passed a required inspection, or is being used for purposes such as ridesharing or transporting flammable materials.

Insurance Issues

At times, a nonrenewal can occur simply because the insurer no longer offers insurance in your state or doesn’t cover particular categories. If you’ve moved from one state to another, the insurer may not renew your policy. A nonrenewal could also occur because you didn’t provide insurer-requested information for policy purposes. In some states, an insurer can nonrenew an auto policy if the nonrenewal is consistent with specific geographic underwriting standards and you have a poor driving record or payment history. 

Unclear Factors

In some states, an insurer might be able to nonrenew a policy for any reason at all except for those based solely on your credit score or factors such as age, religion, gender, race, or marital status. 

What Are the State Laws for Notification of a Nonrenewal?

Most states require the insurer to notify you in writing and include specific facts or reasons for the nonrenewal, such as the particular incident that led to the nonrenewal.  In some states, the insurance company must also notify the regulatory body, such as the insurance commissioner.  The time frame for nonrenewal notification varies. For example, insurers must give you 30 days’ notice before nonrenewing your policy in Ohio, 45 days’ in most cases in Massachusetts, 60 days’ in Nebraska, and 45 to 90 days’ notice in New York. This advance notice gives you time to shop for a new insurance policy.  

Can I Dispute a Notice of Nonrenewal?

If you think the reasons for the nonrenewal are incorrect, you can contact the insurance company directly. Be ready to provide information or documentation to prove any statements are incorrect or that the insurance company isn’t following the state’s requirements.  If the insurance company won’t engage or still won’t renew your policy, depending on where you live, you might be able to involve your state insurance agency and request an insurance hearing regarding your nonrenewal. In other states, you can only dispute a nonrenewal if the insurance company didn’t follow the state’s guidelines or required steps for the nonrenewal process. You may have a limited amount of time to challenge a nonrenewal, so look up your state’s expectations and your eligibility to contest a nonrenewal. 

What If Your Coverage Is Denied?

If you can’t renew your policy with your current insurer, start shopping around for a new insurance policy as soon as possible, or speak with an independent insurance agent. If your insurance was nonrenewed due to a severe driving infraction, you might need to research high-risk insurance options. 

What Are the Differences Between a Nonrenewal and a Cancellation?

An insurance nonrenewal is different from an insurance cancellation, although the differences once again depend on state law. In many states, a new insurance company is legally prevented from canceling your auto insurance—with a few specific exceptions—after 60 to 90 days. Here’s how: