A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 14, 2021

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Important facts to know...

  • After your six-month or 12-month car insurance term is up, the insurance company will reassess your policy to recalculate premiums
  • When a policy is being reassessed and the company comes up with a new premium, it’s called a car insurance renewal
  • If the carrier has determined that you’re not eligible for coverage, you’ll receive a notice of non-renewal instead of a renewal notice
  • In your non-renewal notice, it will explain why the company is ending your policy and when it will end
  • You should see if you can provide documents to keep your coverage or start to shop for new coverage if that’s not an option

If you are the type of person who doesn’t like change, you might be like one of the many auto insurance consumers who buy coverage and stay with the same company for years.

When you keep your car insurance with the same insurer for years, you will more than likely receive a discount that’s dependent on how long you’ve had your policy.

Just because you’ve stayed loyal to your insurance company doesn’t mean that your company will stay loyal to you. When your current policy period is about to end, it’s the company’s job to look over your information and to decide if your policy will renew.

It’s also a good time to compare quotes from other companies to make sure you getting the best rate. Enter your zip code in our free rate tool above and see how much you could save.

If the company wants to sever ties with you, you’ll receive a non-renewal notice in the mail. Here’s what you need to know about non-renewals:

What is the purpose of an auto insurance renewal?

When you buy a policy, you’re agreeing to pay the final rate in exchange for a stated amount of coverage.

When your policy is issued, the rates are guaranteed to stay the same for the rest of term as long as you don’t endorse your policy. It’s when the six-month term or the 12-month term that you’re carrying is about to expire that it will renew.

The purpose of a car insurance renewal is to give the insurance company a chance to reevaluate all of your personal information to determine if you’re paying adequate rates.

The underwriter will run reports and review claims records to determine if you are still eligible for coverage based on the carrier’s underwriting guidelines. If new rates have been filed, your rates could change for no reason.

Insurance companies are required to send you documentation in the mail when the policy is renewing.

Most companies will start the process by assigning an underwriter your file about 30 to 45 days before the policy is set to expire. After everything has been reviewed, you receive renewal documentation in the mail as long as you’re eligible.

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What happens when you’re not eligible for your policy to renew?

If you’re not eligible for coverage because you’re too much of a risk to insure, the company will then initiate the non-renewal process. Your policy isn’t going to end immediately, but it is going to end within the next month or so when the term expiration date comes.

By law, all states require auto insurance carriers to send out written non-renewal notices to all of their clients.

The notice will contain the following:

  • your policy information
  • your name
  • the reason why the policy is ending
  • the date when the coverage will expire

It’s important to pay close attention to the reason for the non-renewal when you’re deciding what to do.

Most Common Reasons for Non-Renewals

There are several reasons that a company can set your policy up for non-renewal.

When insurance companies have stricter underwriting guidelines, it’s easier to lose your coverage for having even minor tickets and accidents.

Here are the most common reasons that non-renewals are issued:

  • You are convicted of a DUI
  • Your driver’s license is revoked
  • You have several moving violations on your record over the last year
  • You file multiple at-fault claims within a span of three years
  • You move out-of-state and you keep insurance in your previous state of residence
  • An unlisted driver in your home has an accident in your vehicle

Is there anything that you can do to keep your coverage?

After a non-renewal is issued it can be difficult to change the insurer company’s mind.

There are a few scenarios where you can stop the process and renew your policy as long as you provide the right documentation to your agent. Most commonly, you’re being non-renewed because a driver in your home has a spotty record.

If you’re willing to exclude the driver from the policy or you can show that they have their own coverage in their own name, you may be able to keep your policy.

Sign an exclusion form or provide a copy of the driver’s insurance and you shouldn’t have any further problems for the upcoming term.

If you can’t change the company’s mind, you’ll have to find coverage through a new insurer before your term ends. If you wait until the expiration date passes, you’ll have a lapse of insurance.

You can quickly compare rates with several insurers by using an online rate comparison tool. Get car insurance quotes here and see if it is better for you to buy insurance with a new insurance carrier.


  1. http://insurance.illinois.gov/autoinsurance/auto_insurance_definitions.asp
  2. https://www.thebalance.com/what-is-an-insurance-renewal-527419
  3. http://www.iii.org/article/is-there-a-difference-between-cancellation-and-nonrenewal
  4. http://www.npr.org/2015/05/08/403598235/being-a-loyal-auto-insurance-customer-can-cost-you
  5. http://www.insurance.ca.gov/0400-news/0100-press-releases/2014/notice001-14.cfm
  6. https://www.thebalance.com/what-is-insurance-underwriting-2645778
  7. http://www.tdi.texas.gov/pubs/consumer/cb020.html
  8. http://uphelp.org/sites/default/files/resources/boggs-conditional-renewal-rules-by-state.pdf
  9. https://www.thebalance.com/what-is-a-non-renewal-527436
  10. https://www.thebalance.com/what-is-an-excluded-driver-527281