Insurance, such as auto, motorcycle, or home, is something that most people need, as it offers a way to pay a small fee to protect the assets you own. What do you do, though, if you receive a letter from your insurance company that says that they have canceled your policy or are not renewing it? In both cases, you would need to find insurance to replace the coverage you had, but it is important to understand the differences between an insurance company canceling a policy or not renewing it.

Policy Cancellation

The first term, which involves the insurance company canceling your policy, is something that generally occurs because of something the policyholder did. An insurance company would cancel a policy, for example, if the person did not pay their bills on time. If the payment is not received by the due date, the insurance company could cancel the policy. Insurance companies also cancel policies when customers commit fraud in some way. If this happens, the insurance company you are using could choose to cancel the policy at any point.

Policy Non-Renewal

The other terms, policy non-renewal, is similar to a policy cancellation, but it is different in several ways. Generally, when a company decides not to renew a person's policy, they will keep the policy going until the term of the policy ends. Shortly before that point, they will send a letter stating that they are not renewing the policy.

Insurance companies may decide not to renew a policy if a person violates the law while having the policy. If you have auto or motorcycle insurance and end up with a DUI, the insurance company might decide that you are too high of a risk. In this case, the insurance company might choose not to renew your policy. Another reason a company would choose to not renew a policy is if they decided to no longer carry that type of insurance.

What You Can Do in Either Case

In either case, you have two main options for getting the insurance coverage you need. You could call your current company and ask them why they are not renewing the policy or why they are canceling it. You could then ask them to reconsider their decision. The other option you have is to contact a different company to ask for an insurance quote. If your company will not insure you anymore, you should still be able to find other companies that will. For more information, contact insurance companies like Ahlquist Insurance.