StateCover Guide
Glossary

Nonrenewal

By Editorial team, last reviewed

Quick answer

Nonrenewal means your insurance company will not renew your policy when its term ends. Unlike a cancellation, it does not cut coverage short: the policy runs until its end date and then stops.

How it works

States regulate nonrenewals, so the details depend on where you live. Texas is a useful example:

  • Notice. The insurer must send a nonrenewal notice in advance and give you the reason if you ask.
  • Common reasons. The Texas Department of Insurance lists drunk-driving convictions, several accidents or tickets, many claims (especially for crashes you caused) and not cooperating with a claim investigation.
  • Limits. An insurer cannot refuse to renew because of your age, or because of certain claims, such as weather damage or hitting an animal.

Nonrenewal is different from cancellation. A cancellation stops the policy before its end date, for example for nonpayment, and the insurer must refund any unearned premium.

What to do after a notice

  1. Ask your agent or insurer why the policy is not being renewed, and whether the decision can be reversed.
  2. Start shopping right away, so the new policy begins before the old one ends and you avoid a lapse.
  3. If no company will sell you a policy, ask an agent about your state's assigned risk plan, which offers basic coverage.
  4. If you think the nonrenewal was unfair, you can complain to your state insurance department.

Sources

Last reviewed by the StateCover Guide editorial team. See our editorial policy. Spotted an error? Tell us.