Your Car Insurance Policy Got Cancelled?
Reader’s Question:
I heard from a friend that his auto insurance policy was canceled. However, I also have another friend in which her car insurance was not renewed. Is there a difference or those things are just the same? We all live in Rhode Island.
Erin
Providence, RI
There is a difference between cancellation and non renewal of auto insurance policy and it’s a big difference if I may add.
First let’s define what a cancellation of a policy is. If an auto insurance policy has been in effect for more than 60 days, insurer cannot cancel it except for the following reasons:
1. no payment of the premium;
2. suspension or revocation of the driver’s license; and
3. falsification of information or fraud when applying for the policy
In addition, from what I know you could a policyholder can cancel his or her car insurance policy whenever he/she wants.
On the other hand, non renewal of car insurance policy is decided by either the policyholder or by the car insurance company once the policy has expired. Usually, if an auto insurance policy is not renewed by the car insurance company, the insurer is obligated to give a notification to its policyholder for a certain number of days prior to the expiration of the policy. Included on the notification is the reason why the policy is not renewed.
For more information about cancellation and non-renewal of car insurance policy, ask the Rhode Island Department of Insurance or you auto insurance agent in Providence.
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