Can the insurance company cancel my policy?
Updated: 2 days ago
Updated: Oct 6, 2022
Hey there, it's Mike Goodman with Goodman Insurance Solutions. And today, what I want to talk about is, can my insurance company cancel my insurance policy. And the answer is yes. They can do this in a couple of different ways. The first way is that they will send you a notice saying that, on this date, we will no longer be offering you coverage, meaning that that could be in as soon as ten days, maybe 20 days, or 30 days. And then another way they could do that is they will send what's called a non-renewal, meaning that, at the end of your policy period, whenever that ends, they will not be starting a new cycle, whether a six-month policy or a 12-month policy. Okay, so why does this happen? At the end of the day, if the insurance company is not profitable, just as any other business would want to be, they will get off of that account. So, maybe at some point in time, that account was favorable, meaning that there were not a ton of accidents or claims, and everything was great. But at some point in time, if there was a trend that started in the wrong direction to where there was a bunch of liability claims or different types of claims, small claims even, they look at it like, okay, we're seeing this trend of claim, after a claim, when is there going to be the big one? And so, what they will do in those situations is study those things and decide, hey, are we comfortable staying on this account and taking on that risk? Or should we dismiss ourselves from this policy and let someone else assume that risk? And so, a lot of times, I'll see this specifically on the auto side of things if we've got someone that's repeatedly getting a different type of violations, whether that be speeding, driving under the influence, or anything like that. Now, a couple of speeding tickets here or there, a lot of times, I'm not going to see any cancellations because of that. But again, if, time after time, we see something that's heading in the wrong direction, I have seen them decide to get off that account. And so, I just wanted to cover that. That is one thing that they do have the right to do. They can non-renew or cancel your policy. And that goes for, I mean, any insurance you would have. They operate in the private sector and have the right to do so. There are different rules they must follow regarding the amount of time they must give you. And that's going to vary by state that you live in. And so, if you ever have any questions at all relative to your policy that you've got with us, or even if you're not a customer yet, and you've got a question about anything we talked about today or any other insurance type of material, feel free to reach out. Give us a call at (620) 531-0261. We are on most social media platforms. You can check us out on our website as well at kansasinsuranceagent.com. Shoot us an email also at Mike@goodmaninsurancesolutions.com. I hope you have a great rest of your day, and I'll talk to you next time.