What do “nonrenewal” and “cancellation” mean?
Nonrenewal means your company is not continuing (renewing) your policy after your policy’s end date. You can find the end date on the notice of nonrenewal or ask your company.
Your company must send a notice if it isn’t renewing your policy. It must give you at least 60 days’ notice of a nonrenewal.
Cancellation means your company will stop your policy before its end date. A company must give you 10 days’ notice before it cancels your policy. You also have the right to cancel your policy early.
The company must refund any unearned premium to you within 15 days after the date of the cancellation. Unearned premium is the amount you paid in advance that didn’t go toward coverage.
Your company must give you the reason for the nonrenewal if you ask. If you were declined a policy or your policy was canceled or not renewed after Jan. 1, 2026, your company must give you a written statement telling you why they declined, canceled, or nonrenewed your policy.
You may file a complaint with TDI if you think a company nonrenewed or canceled your policy unfairly.
Learn more: Auto insurance guide
Why would a company not renew my policy?
A company might not renew your policy if:
- You drove under the influence of alcohol or were convicted of a DWI.
- You caused multiple accidents or got multiple driving tickets.
- You filed a lot of claims, especially for crashes you caused.
- The company stopped selling policies in your area.
- You or anyone your policy covers didn’t respond to calls or emails from the company or didn’t cooperate with a claim investigation.
Learn about when companies can't nonrenew your policy in our Auto insurance guide.
If your policy is for less than 12 months, a company can nonrenew your policy only on the anniversary of its effective date.
If you don’t cooperate with a claim investigation, the company will nonrenew the policy when it expires.
Why would a company cancel my policy?
An insurance company can cancel your policy in the first 60 days for any reason, unless the cancellation violates a law.
After 60 days, a company can cancel your policy if:
- You stop paying your premiums.
- You file a fraudulent claim.
- Your driver’s license or car registration is suspended or revoked. This also applies to other drivers who live with you or use your car. The company may not cancel if you agree to stop coverage for the driver with a suspended or revoked license.
What should I do if I get a notice of nonrenewal or cancellation?
Ask your agent or company if they can reinstate your policy. If not, start shopping right away. Have a new policy in place before your current policy expires. Get sample rates on our HelpInsure.com site. Also, ask friends or family about their insurance providers.
If you can’t find a company willing to sell you a policy, you can get minimum coverage through the Texas Automobile Insurance Plan Association (TAIPA). You can get TAIPA coverage if two insurance companies have turned you down. Ask an agent for help getting a TAIPA policy.
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