Are Renewal Cancellations Bad?

Does it look bad on you if an insurance company cancels your car insurance renewal?


I mean, that’s the short answer…

Renewal cancellations are normal

Renewal cancellations are a normal part of doing business. Most insurance companies operate on a point system, where each ticket and each accident is assigned a certain number of points. Once you meet the point threshold, your policy renewal gets cancelled.

When your policy gets cancelled because you meet the point threshold, that doesn’t look bad on you; it just means that you’ll have to get a new policy, most likely with a “high risk” company, until your record clears up. That could take a year or a few years. But once your record clears up, you can go back to a regular insurance company, even the one that cancelled you in the first place.

Some cancellations are bad

With that said, there are other cancellations that DO look bad on you… Being cancelled for non-payment looks bad on you. Being cancelled for misrepresentation looks bad on you. These are the types of things that could affect your rates, often by a lot. But getting a renewal cancelled doesn’t directly affect your rates (The things that got it cancelled in the first place, like tickets and accidents, affect your rates, but not the actual cancellation).

So there you go, now you know. Of course, every situation is different and if you want to discuss your particular situation, feel free to call me – 1-888-467-5499. I’d be happy to discuss it with you.

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