Auto Insurance Renewal and Cancellation Rights

Renewal and Cancellation Rights:

The auto insurance renewal and cancellation rights discusses about your rights:

• When your automobile insurance policy is cancelled or non-renewed.
• When your residential insurance policy is cancelled or non-renewed.

Can an Insurance Company Cancel or Non-renew My Automobile Insurance Policy?
Once your policy is active for sixty days, it may be cancelled or non-renewed by the insurer for the following reasons:

• Non-payment of premium
• Fraud or material misrepresentation, or
• Substantial increase in the hazard insured against.

However, the insurance company must mail you or otherwise get or delivered at your last known address the reason at least ten days before the effective cancellation date for non-payment of premium and twenty days in case of all other reasons. For non-renewal, companies are required to forward you notice at least thirty days before expiry. This notice will explain that after your written request, the company would provide you the reason for non-renewal.

In case the insurer fails to serve you a notice for non-renewal as per law, your policy will remain active for thirty days from the date the proper notice is served upon you. In case you have already replaced your policy, coverage will terminate on the effective date on which you replaced the policy. Therefore, you have the rights:

• To receive written notice before your policy will be cancelled or non-renewed.
• To a statement of the reasons for the cancellation or non-renewal.