Insurance is a product you purchase to protect you against insurable events, it is not a gift or a right. Insurance is necessary for protection against something that can put your financial present and future in jeopardy. And as such, it is also a contract that can be terminated or that either you or the insurance company can choose not to renew.
Insurance termination and non-renewal are two completely different procedures.
- In the case of non-renewal, either you or your insurance company can intentionally choose not to renew your policy after its expiration. This can happen for a few reasons including:
- Your life situation has altered and the insurer no regards you as an insurable risk.
- Your insurance company may stop coverage for particular lines of insurance.
- You opt to sign up with another agency, where the premiums are more affordable.
There is little to do to stop the policy, simply don’t pay the premium. However, if your policies renew automatically then be sure to call your agent to stop the payment before it goes through.
On the other hand if your insurance company decides not to renew the policy, they are obligated to give you 20 days notice before the renewal date. If they choose to cancel the policy, they must only give 10 days notice before it is cancelled.
Whether your policy is non-renewed or cancelled at the request of your insurance company, you have the right to contest it or get a written explanation. In order to exercise this right, you must contact the consumer affairs division of your insurer. If you are still unsatisfied you can contact the Department of Insurance.
- Your insurance company can terminate the policy at any time during the term of the policy—not just upon renewal. An insurance company can cancel a policy for many reasons, for example:
- Premiums are unpaid by the end of the grace period.
- Fraud is committed by lying on the application.
- Conviction of participating in criminal actions that could have potentially increased the risk to the insurance company.
- Partaking in acts that are deliberately dangerous with regards to claims thereby increasing the risk to the insurance company
If you would like to renew your policy or get a free Tulsa insurance quote, then give us a call at (918) 622-7560.