FAQ's
Q: What is the difference between cancellation and non renewal?
A: There is a big difference between an insurance company canceling a policy and choosing to non-renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:
• You fail to pay the premium
• You have committed fraud or made serious misrepresentation on your application
Nonrenewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Depending on the state you live in, your insurance company must give you a certain number of days’ notice and explain the reason for not renewing before it drops your policy.
Q: Can I be cancelled for a claim?
A: it’s very unlikely that any type of insurance would be cancelled after you file a single claim. However, filing a claim could increase your premium on certain types of insurance.
Q: How do “points” affect insurance rates, and when do insurance companies check driving records?
A: In most states, the motor vehicle department has a “point” system, which is used to track accidents and violations that affect your driving record. Each insurance company has its own method of evaluating applicants, so the points on your driving record may or may not have a direct impact on the rates you pay for auto insurance.
Insurance companies will order a copy of your driving record history once you have purchased a policy, in order to confirm the information you have provided on your application. Your company may also check your driving record when your policy is scheduled for renewal.
