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Cancellation vs. Non-Renewal – What’s the Difference?

When you’re without insurance, be sure to know why!

In some policy owners’ minds, whether your insurance company cancels your auto coverage, or simply chooses not to renew it, it all means the same – you’re suddenly without insurance.  However, the difference between a cancelled and a non-renewable policy can a significant factor in finding another policy pronto!


Insurance companies cannot cancel a policy that been in force for more than 60 days, unless:

  • Failing to pay your premium in a timely manner
  • You have committed fraud or made serious misrepresentations on your application
  • Losing your ability to drive because your license was suspended or revoked, or because it expired during the term of the policy.

If any one of these three circumstances are the case, your insurer has the right to cancel your policy at any time. If they decide to do this, you will be notified 10 to 30 days before the cancellation becomes effective. If your auto insurance is cancelled for any reason, you will likely have trouble finding another insurance company willing to issue you a policy.

If your auto insurer decides not to renew, it is usually because you filed too many claims for at-fault accidents, or you were convicted of driving under the influence, or you were cited for too many traffic violations during the previous three to five years.

Similarly, your auto insurer has between 10 to 30 days to send written notice of non-renewal. In this document, they should explain why they choose not to renew. If they don’t note why, always request an explanation from your insurer. The one advantage non-renewal has over cancellation is that it is less of a deterrent in finding another company to provide you with auto insurance coverage.

Are you waiting for your perfect auto insurance policy? Contact Abbate Insurance for all of your insurance needs in New Haven and the surrounding areas in Connecticut!

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