We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Our content is backed by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Checkmark Expert verified
Bankrate logoHow is this page expert verified?
At Bankrate, we take the accuracy of our content seriously.
“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Their reviews hold us accountable for publishing high-quality and trustworthy content.
Written by
Lizzie Nealon
Lizzie Nealon is an insurance contributor for Bankrate and enjoys making home, auto and life insurance digestible for readers so they can prepare for the future.
Edited by
Amelia Buckley
Amelia Buckley is an insurance editor for Bankrate.com and an insurance agent with a personal lines licens. She emphasizes creating informative, engaging and nuanced content to support readers in making personalized insurance decisions with confidence.
Reviewed by
Kenneth Chavis IV
Kenneth Chavis IV is a senior wealth counselor at Versant Capital Management who provides investment management, complex wealth strategy, financial planning and tax advice to business owners, executives, medical doctors, and more.
Bankrate logoAt Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation of how we make money . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure .
Bankrate logoFounded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you.
All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first.
Bankrate logoBankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
Bankrate logoYou have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
Bankrate logoCoverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Having car insurance coverage is required in most states. However, sometimes even when you have purchased a policy, your car insurance policy can be canceled or nonrenewed. Understanding the situations in which an insurance company could cancel or choose to not renew your policy may be important so that you can take the steps to proactively avoid this from occurring. If your policy is canceled, this overview will also explain how to reinstate the necessary coverage to get you back on the road in as little time as possible.
Car insurance companies can cancel, or “drop” your coverage, although you will typically be given enough notice to obtain a new policy. Your car insurance company will likely send you a letter explaining why your coverage has been dropped. If the company neglects to explain its reasoning, you may want to contact your agent or a customer service representative to find out why your policy is being canceled.
Your auto insurance policy could be canceled if:
If your policy has been in force for fewer than 60 days, there may be more scenarios that could lead to cancellation.
Powered by Coverage.com (NPN: 19966249)
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
RATE INCREASE ALERTCosts will continue to rise through 2022. Shop for a better rate before you renew your current policy.
Powered by Coverage.com (NPN: 19966249)
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
If you have received an auto insurance cancellation letter, your first step may be to understand why your policy is being canceled and how long you have to find replacement coverage. Your insurance company is required to contact you in advance of any cancellation so that you have time to find a new policy. The amount of notice you get may depend on the regulations in your state.
If your car insurance coverage is dropped, you may want to try the following steps:
The key difference between an auto insurance cancellation and a nonrenewal is the timing. Insurance policies are contracts that typically last between six months and a year. At the end of this term, your provider can decide whether or not to offer you a new contract. Nonrenewal means the insurer decides not to offer you further coverage at the end of your term. The provider is usually required to send you a notice of nonrenewal a certain number of days before the end of your policy to give you time to shop for new coverage.
There are many reasons insurers can choose not to renew your coverage, but here are a few of the most common:
On the other hand, an insurance cancellation means that your policy is canceled at any time other than the renewal date. Cancellations can only happen for very specific reasons. Once you purchase a policy, the insurance company usually has 60 days to decide not to offer you long-term coverage by issuing a cancellation. After that, there are typically only three reasons an insurance policy can be canceled:
In the table below, Bankrate’s insurance editorial team has outlined the key differences between policy cancellations and nonrenewals:
| Cancellation | Nonrenewal | |
|---|---|---|
| Time frame | Within the first 60 days of coverage or for a specific reason | At the end of your policy term |
| Notice required | Depends on the reason for cancellation | Depends on the state; usually 30 to 60 days |
| Reason for termination | Must be due to nonpayment, fraud or license suspension if after 60 days | Variety of potential reasons including number of claims filed, credit score change or carrier coverage area change |
You can challenge your car insurance company after receiving a policy cancellation notice. You could first call your insurance company to discuss whether your insurer might be willing to keep your policy. Depending on the reason for your cancellation, you may be able to reach an agreement with your carrier.
However, if contacting the company proves unsuccessful, you may want to contact your state insurance department to file a complaint if you believe your policy has been canceled unfairly. Depending on the state, you may be protected from cancellation for specific reasons, such as your age. The state insurance department might investigate to see if the cancellation was justified.
Unfortunately, if your car insurance company drops your coverage, getting another policy could be difficult and expensive, depending on the reason for your cancellation. The reasons that often lead to the cancellation, such as a license suspension, may be viewed by other insurance companies as evidence of high-risk behavior, which generally leads to higher costs of car insurance.
However, some companies offer high-risk auto insurance, so a policy cancellation as a result of a driving incident does not necessarily mean you will not be able to find replacement coverage. Although your premium may be higher if you have accidents, tickets or a DUI conviction, you will likely still be able to find some form of coverage to meet state minimum requirements.
If you are unable to line up a new policy with another insurance company, you may be able to get coverage through your state’s “assigned risk” program. This type of auto insurance is typically available to high-risk drivers who have trouble buying a policy in the private market.
The best car insurance likely depends on your financial situation, where you live, your driving history and your preferences. If you have been dropped from coverage and you are looking for a new policy, you may want to get quotes from several companies to find an option that fits your needs. However, be aware that if you are being dropped from your current carrier for high-risk driving behaviors, it is likely that you will face higher premiums with other carriers as well.
Technically, yes you can cancel your auto insurance policy at any time, but some carriers may charge fees for policies canceled before the end of the policy term. Additionally, insurance experts advise that you should only cancel a policy if you have canceled your registration at your state’s department of motor vehicles or if you purchased a policy with another company that will become effective on or before the cancellation day. If you choose to cancel your policy and drive without insurance, you could be violating state laws and risk a variety of penalties that range from costly fines to license suspension.
Yes, you will likely be able to find coverage again if your carrier dropped your policy. When doing so, it’s important not to intentionally hide your canceled coverage status from your new insurer. Misrepresenting an insurance application can lead to having your policy canceled all over again. If you are unable to find auto insurance coverage from a private carrier, you may need to reach out to your state’s department of insurance to discuss your options for coverage.
A no-loss statement is an agreement that an insurance provider may have you sign to validate that your vehicle has not undergone any damage or loss that could lead to you filing a claim on that vehicle between the point your policy was canceled and the point you petition for reinstatement.
How long it takes for an insurance policy to be canceled for non-payment depends on the company and its billing policy. Car insurance companies must notify you prior to canceling the policy. Each state has different notice periods, but it is typically at least 10 and as much as 20 days. You usually have a grace period before the notice goes out, so if you realize you’ve missed a payment, be sure to make it as soon as possible to avoid being canceled for non-payment.
