The Difference Between Cancellation and Nonrenewal?

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Do you know the difference between a cancellation and a nonrenewal of your insurance policy? Many people don’t – but there is actually a big difference between an insurance company canceling a
policy and choosing not to renew it.

Insurance companies can cancel a
policy that has been in force for more than 60 days when:

  • You fail to pay the premium
  • You have committed fraud or made serious misrepresentations on your application.


Non Renewal is an entirely different topic. The decision to renew your policy can be decided by either you or your insurance company when it expires. Your insurance company must give you a certain number
of days’ notice and explain the reason for not renewing before they non renew your policy.

They also have the ability to non renew only a specific line of insurance. This could be because of something you did or their decision to write fewer policies where you are located. If it was something you did that raised an eyebrow with your insurance company, such as
committing fraud, they are very likely to non renew your policy.