Difference Between Auto Insurance Cancellation and Nonrenewal
Reader’s Question:
I am confused. I heard from my boyfriend that cancellation of car insurance policy is different from nonrenewal. I don’t see any difference at all. Can someone explain it to me in a manner that I can easily understand? Thanks!
Rica
Bismarck ND
You don’t have to be confused Rica. Your boyfriend is correct. There is a huge difference between cancellation and nonrenewal of auto insurance.
According to North Dakota Insurance Department, cancellation of auto insurance policy can take place in the middle of the policy period. It can be done by the policyholder. However, if a policy has been in effect for 60 days, a car insurance company can still cancel it for specific reasons like failure to pay the premium, policyholder’s license has been suspended etc. to name a few.
Meanwhile, nonrenewal of car insurance happens once the policy itself had expired. The car insurance company can choose not to renew the policy depending on its company’s guidelines. Some of the factors an insurer consider in not renewing (or renewing) a policyholder’s auto insurance are driving record and claim history.
If you have any questions about cancellation and nonrenewal of car insurance policy in North Dakota, you could always ask your car insurance agent or the North Dakota Insurance Department