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Q

In California, what are the legal minimum days that an auto insurance billing notice needs to be sent (mailed) prior to the due date? Also could you attach CIC or CCR where this is found? Thanks!


A

In California there are various insurance laws and regulations regarding car insurance but there is no portion of the California Insurance Code (CIC) or California Code of Regulations (CCR) that specifies when an auto insurance company should send out a billing notice.

The California Department of Insurance (CDI) says that automobile insurance companies in their state set up their own billing processes and determine their own billing cycle to send out billing notices. There is not a law stating when they should send out a billing notice to their customers.

There is however several other types of notices that car insurance companies in California are required to send according to the California Insurance Code. The notices that pertain to the continuation or termination of your policy include:

  1. Notice for cancellation
  2. Notice of renewal
  3. Notice of non-renewal

The Notice for Cancellation is required under CIC 662. Here it says that automobile insurance companies are required to send notice for cancellation at least 20 days prior to the cancellation effective date for reasons other than non-payment. When cancellation is due to non-payment, then there must be a notice at least 10 days prior to the cancellation effective date.

The cancellation notice is typically part of the auto insurance billing that is sent to you at least 10 days before the due date informing you that your car insurance policy will be canceled on a specific date unless the car insurance premium is paid. If you fail to pay on time (normally by 12:01 AM of the due date) your car insurance company may then terminate your policy.

If you fail to make a payment to renew the policy, it is assumed that you do not wish to renew, and the 10 day cancellation notice for non-payment would not apply in this situation. Auto insurance companies do not send out 10 day cancellation notice due to failure to renew their car insurance policy. However, once the policy has been renewed, the 10 day cancellation notice for non-payment is then applicable per CA law.

The Notice of Renewal is required under CIC 663 (a) (1). This part of law says that car insurers are required to send renewal notice at least 20 days prior to the renewal effective date.

The Notice of Non-renewal - under CIC 663 (a) (2), insurers are required to send notice of non-renewal at least 30 days prior to the non-renewal effective date.

If you need more information on CA insurance laws and regulations regarding when billings or non-renewal and cancellation notices must be sent out by insurers, contact the California Department of Insurance directly. Their consumer division should be able to answer your questions.

If you want to know about your specific car insurance company's billing process then speak to your agent. If your agent is not able to explain to you about their billing cycle or fulfill your car insurance needs, contact a CarInsurance.com agent. Our agents can explain not only explain billing procedures and insurance terms but also tell you how they can get you low cost car insurance in California.


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