Differentiate Between Cancellation & Non Renewal Auto Insurance
Differentiate Between Cancellation & Non Renewal Auto Insurance Every auto insurance policy is valid for a certain period of time and after the lapse of that period the insurance holder has an option of renewing the existing policy. If the person does not wish to renew the policy then naturally the tie between the individual and the insurance company comes to an end. There might be various reasons which culminate in the display of such a behavior on the part of the customer. But the most common reasons responsible for such actions is attributed to increase in the rate of premiums, dissatisfaction with the quality of services provided by the insurance company, etc. A customer can put an end to his association with the company either by non renewal of the policy or by simply canceling the same. Although both these options will yield the same results, but both the methods are as different as chalk and cheese, and it is important to comprehend the finer details that both the cancellation and non renewal of auto insurance represents. The insurer might not renew a specific policy after it reaches its validity period due to several reasons. But before taking such an action, it is the duty of the insurance company to notify the customer in advance so that he can make proper arrangements for his future insurance requirements without putting his insurance coverage in jeopardy. The time span given for the notice period largely depends on the state where one's automobile is insured. Cases of non renewal do not mean that the insured are at fault or they were negligent. The company might simply refuse renewal if they are not offering the same policy anymore or they have reduced the number of policies by them, above all the reasons varies from company to company. But auto non renewal would no way deter the customer from getting attractive premium offers from the next auto insurance company as his driving record does not receive a smudge due to a non renewal. While non renewal of an auto insurance policy meant no harm to the insured, but cancellation of a policy can have serious consequences. Cancellation is carried out when there are enough valid reasons by the dint of which the company can initiate such actions. Without the presence of a proper reason the company will not be in a position to offer such harsh actions. Most of the times, cancellations occur when the insured involves himself in activities that results in fraud in the eye of the company. If the insured has given false information about himself on the basis of which the rates of the premium policies were set, it would tantamount to fraud and the company has the full right to abort the policy. And incidents of similar manner might make it very difficult for insured to get another insurance policy even from a different company. So it is always advisable to furnish details on the application form of an auto insurance with full honesty so that one does not land in trouble of these sorts.
