Every renewal period, your insurance company must determine if they are willing to renew your policy. While some people believe that renewal is completely up to them, that’s not the case. Insurance renewal is a two-way street, and both parties have equal say. If you’re happy with your insurance, having them decline to renew can be a shock. There are many reasons why your insurer might not renew your policy. If it happens, knowing how to handle it will help you get a new insurer as quickly as possible.
Why your Insurance Renewal was Denied
When you come up for renewal, your insurance company has a decision to make. If you’ve been a model client, and there have been no major changes in the last year, they will almost certainly renew your policy. But if there is new information or circumstances, then your insurance renewal may be denied. Here are the most common reasons:
Making Too Many Claims
Making a significant number of claims in a short period of time puts your renewal at risk. Insurance companies try to balance risk with premiums. As such, when you make too many claims (despite them being necessary), it puts you on the path for denied insurance renewal. Many claims may also make you a high risk driver.
One or More Convictions
Every insurance company considers your convictions when contemplating insurance renewal. Everything from reckless driving, DUI, speeding tickets and more. While each insurance company has a different weight it sets to each type of conviction, they also consider the timeframe. Three convictions in a single year is likely too much, but four over the course of three years may be okay. It entirely depends on their internal metrics to determine if they will deny your insurance renewal.
Failure to Pay (Non-Payment)
Failing to pay for your insurance is a major issue. Even if you miss a payment by a day, your insurance company may decide to not renew your insurance. Failing to pay can also impact your insurance premiums with other insurers. Make sure that you pay on-time, or even in advance to ensure that non-payment isn’t a reason your insurance company declines your renewal.
At Fault Accidents
If you have been in one or more accidents where you were determined to be at fault, your insurance company may decline your insurance renewal. At fault accidents are a major reason why an insurer will walk away. They can also put you in the high risk insurance category, a type of insurance that costs significantly more for riskier drivers.
What to do if your Insurance Renewal is Denied
If your current insurance company denies your insurance renewal, the first thing you need to do is find out why. Having insight into the reasons they reject you will help you address them. Knowing you had a late payment is much different than having made too many claims in a year. Once you know the reason, you can proceed to get new insurance. The best way to get affordable car insurance is to compare the rates of dozens of insurers through isure. Our simple online quote technology will help you find the right car insurance at the best price. With no-obligation, you’ll get the information you need to make an informed decision and get back on the roads with insurance!
Best of all, our licensed insurance brokers are available 24/7 to provide you with advice and answer any questions you may have. It’s insurance that’s about you!