SR-22 & Policy Cancellation vs. Non-Renewal: What’s the Difference
If you're wondering about SR-22 and policy cancellation vs. non-renewal, know that you must maintain SR-22 insurance coverage for as long as required at all times. If your provider cancels or decides not to renew your policy, you must find adequate coverage as soon as possible. Some states require insurance companies to provide notice before non-renewal, but insurance non-renewal notice requirements by state are different.
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UPDATED: Jun 3, 2021
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- Non-renewal and cancellation can be done by both customers and insurance providers
- In some states, insurance companies must provide notice before deciding not to renew your policy
- Failure to maintain SR-22 auto insurance coverage can lead to the loss of your license
You must maintain an SR-22 filing for as long as you are required to by law. But if your coverage is nearing renewal or has been canceled, you’re probably wondering what the difference is between SR-22 and policy cancellation vs. non-renewal.
Even after your auto insurance company files an SR-22 on your behalf, they still have complete control over whether or not they decide to keep covering you. If your SR-22 coverage is not renewed or canceled, you could end up losing your license.
Keep reading below to learn the difference between cancellation and non-renewal, why this happens, and how you can prevent it. But before you do, enter your ZIP code into our free comparison tool above to find affordable SR-22 insurance coverage near you.
What’s the difference between policy cancellation and non-renewal?
So what’s the difference between policy cancellation and non-renewal? Well, the difference lies mainly in when the cancellation or non-renewal occurs.
With a policy cancellation, either the customer or the insurance company can decide to cancel the policy before the coverage period is over. Perhaps a customer wants to switch insurers or the company has canceled the policy due to non-payment.
With a non-renewal, either the customer or the insurance company can decide not to renew the policy on the policy’s expiration date. Perhaps the customer has waited until the policy has expired to change providers or the provider believes the insured has become too risky to insure.
In any case, when it comes to an SR-22 and policy cancellation vs. non-renewal, you should never cancel or fail to renew your SR-22 insurance. Failure to maintain SR-22 insurance can lead to the suspension of your license.
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Why was my policy canceled or not renewed?
You already know that if you have an SR-22 you should never cancel or fail to renew your auto insurance policy. But what if your insurance provider cancels or refuses to renew your policy?
Auto insurance providers have the right to deny coverage to anyone they deem unfit. Even if you’ve had an auto insurance policy with a company for years, if you fail to pay your premiums or are found to have misrepresented yourself, your provider can cancel your policy.
However, in many states, insurance providers are required to provide notice prior to non-renewal. For example, in New York, auto insurers must give at least 45 to 60 days advance written notice before the expiration date of their intention not to renew your policy.
Insurance non-renewal notice requirements by state are different, so check with your state DMV to find out yours.
If you’re worried your SR-22 auto insurance rates are too expensive, don’t cancel. Compare SR-22 auto insurance quotes from multiple companies to find cheap SR-22 insurance.
How do I prevent my policy from being canceled or not renewed?
When it comes to an SR-22 and policy cancellation vs. non-renewal, you must understand that you are considered high risk to insurance companies.
GEICO not renewing policy? Check and make sure you’ve been paying your premiums on time. State Farm non-renewal? Perhaps you’ve gotten into too many accidents in the past year.
In any case, if you have an SR-22 and your policy has been canceled or won’t be renewed, it’s imperative you find a new provider right away. If you don’t have sufficient auto insurance coverage, you risk losing your license and facing hefty fines.
Now that you know about SR-22 and policy cancellation vs. non-renewal, don’t wait to find coverage. Enter your ZIP code into our free comparison tool below to buy affordable SR-22 auto insurance coverage today.