You have just received a non-renewal notice from your Michigan car insurance provider. Chances are pretty good you have a few things going through your mind. What the heck is a non-renewal notice? How does it differ from a cancellation? What should you be doing about it?
What The Heck Is a Non-Renewal Notice
You can have slight peace of mind in knowing that a non-renewal notice is slightly less awful than receiving a cancellation notice. However, neither are ideal situations to be in.
A non-renewal notice means that your insurance provider is no longer accepting you (or another driver in some cases) on your insurance policy. This means that when your insurance policy is due to be renewed, you will need to find another insurance policy. The only reason why a non-renewal notice is slightly less awful than a cancellation notice is because you have more time to find new insurance. When you receive a cancellation notice, it means they have cancelled your insurance policy and you only have about 30 days to find another insurance home.
Causes of Non-Renewal Notices
You are probably asking yourself why your insurance provider would have sent you a non-renewal notice in the first place. There are a few different reasons why insurance companies decide they no longer wish to cover a specific driver.
- Your Driving Record – If you have a lot of speeding tickets or you have a DUI, you should not be surprised if your insurance provider sends you a non-renewal notice. Multiple traffic citations and/or a DUI make you a high-risk driver and some insurance providers do not want the burden of having to cover you.
- Multiple Claims – If you get in a lot of accidents (your fault or not your fault), you are going to be making a lot of claims with your insurance provider. Your insurance provider could decide they don’t want to renew your insurance policy because you are costing them too much money. Most preferred insurance providers have a rule that you should not have more than one at-fault claim a year. If you file a second (and especially the third) at-fault claim, you can expect to receive a non-renewal notice in the mail.
- You Moved Out of the State – If you move out of state and you never inform your insurance, if they can’t find your mailing address, the policy will eventually cancel. Or, maybe you have a local insurance carrier, and they can’t cover you in your new state. You should just work on switching to a new provider as soon as you know you are moving and where you are moving.
What Can You Do About It?
Call an insurance agent as soon as possible to shed some light on what is going on. It is very possible that the insurance provider you currently have would still offer you a policy, they just may want to revisit the terms because you are now a high risk for them to insure. In the worse situation where your insurance provider no longer wants to cover you under any terms, you would need your insurance agent to help you find another provider to get coverage through.
You want to find a replacement for your insurance policy as soon as you know that your current policy is not being renewed. This is because it is illegal for you to drive around without insurance. You could face jail time and end up paying an arm and a leg in repair fees; possibly even a hefty lawsuit from a bad auto accident.
From the very moment you open that non-renewal notice, you should get on your phone and start calling providers and agents to find another form of coverage.
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