What if I don't want to renew my policy? (2024)

FAQs

What if I don't want to renew policy expert? ›

If you do not want to renew your insurance, please let us know before the renewal date of your policy. If we are unable to offer to renew your policy, we will write to you at the last address we have on file for you.

Consequences of a car insurance lapse

Not having insurance: If your auto insurance expires or is cancelled, your biggest concern is not having coverage. That means if you cause an accident and injure someone else or damage their car, you'll have to pay completely out of pocket.

If you choose not to renew your policy at the end of its term, inform your insurer before the renewal date. If you've set up an automatic payment plan, be sure to contact your insurer and cancel before the first payment of the renewal term is automatically paid.

Being turned down for insurance, or not having your policy renewed, happens when an insurer decides it can no longer continue to cover you. This can occur for several reasons, such as changes in your situation that increase your risk, problems with credit history, a criminal record, or too many claims in the past.

You will need to let your insurer know if you do not wish to renew your policy. This must be done before your policy renewal date. However, if you miss the renewal deadline, you can cancel your policy within 14 days of the renewal date, which is known as the 'cooling off' period.

Before cancelling the policy, take the guidance of your insurance company as they will help you with the cancellation process. The insurer may ask you to submit a declaration stating the reason to cancel the plan. You may also need to sign a document for policy cancellation.

Some insurance companies permit you to cancel right over the phone or online. Other insurers may require written notification or a signed document. Generally, insurers will refund you the money for the unused portion of your policy, assuming you paid in advance.

Insurance Lapse Meaning

In such cases, the policy lapses and all benefits and coverages offered are terminated if the due amount is not paid by the end of the grace period. Usually, there is no provision for a lapsed policy refund for insurance policies.

There are many reasons a car insurance company may elect to not renew your policy. Most commonly, it considers you a riskier driver to insure than when you purchased coverage. For example, you may have received a DUI or multiple less-serious moving violations, like speeding tickets.

If you notice your car insurance keeps going up each time you renew, it could be from rising car insurance rate trends over time. These are often caused by factors outside your control, like increases in the costs to repair and replace vehicles or increases in claims and claim severity in your area.

Who is cheaper, Geico or Progressive? ›

Key Takeaways: Geico is best for you if you're simply looking for the cheapest option, as the provider has a cheaper average rate estimate in 82% of states across the U.S. Progressive is best for you if you're looking for more coverage options, add-ons and customizations.

Is there a fee for cancelling Progressive? This varies by state and when you purchased the policy. In some states, Progressive will charge a $50 cancelation fee if you cancel within your first term; meaning your policy has not yet renewed. Once the policy has renewed there will no longer be a cancellation fee.

If your car insurance has expired, you lose benefits such as the No Claim Bonus and will have to purchase a new insurance plan. If the grace period for the renewal has passed, you will no longer be able to make an insurance claim during the inactivity of the policy and lose any accumulated No Claim Bonus.

A policy could be non-renewed for a variety of reasons—from a company deciding to discontinue that line of insurance to a property no longer meeting an insurer's underwriting guidelines—so you shouldn't necessarily think the non-renewal is because of something you did.

The company must mail a nonrenewal notice to you at your last known mailing address, so it is important for you to notify your insurance agent or company if you move. The company must mail your nonrenewal notice: At least 30 days before the nonrenewal date if the policy has been in force less than 5 years.

Cons: As noted, the insurance company will typically raise premiums once the term is expired. And as the renewal is year-to-year, the premiums will generally increase more every year after. For many people, this is only viable for a few years at most.

Most providers allow policyholders to cancel their policies at any time. However, some may impose a waiting period before the cancellation goes into effect. This period could be as long as 30 days or more and is intended to prevent insurance gaps for drivers and loss of premiums for insurance companies.

Non-renewal occurs when the insurance company decides not to continue the coverage when the policy expires. Here are common reasons for non-renewal: Your insurance company decides to cease business in your state or sell fewer policies.