Either you or your insurance company can decide not to renew the policy when it expires, which may cause an insurance lapse. Depending on the state you live in, your insurance company must give you a certain number of days notice and explain the reason for non-renewal before it drops your policy. Call the insurance company’s consumer affairs division if you think the reason is unfair or want a further explanation. If you don’t get an explanation, call your state insurance department.
The company may have decided to drop that particular line of insurance or to write fewer policies where you live, so you shouldn’t necessarily think the non-renewal is because of something you did. On the other hand, if you did do something that raised the insurance company’s risk considerably, like driving drunk, the premium may rise and you may not have your policy renewed.
You can find out more from your insurance company about why they are not renewing your policy. If it did not have to do with your driving record or any serious offense, you should be able to get insurance elsewhere without affecting your rates. If it is due to a serious offense, bad overall driving record, or too many claims, it may make it harder to get insurance or result in you paying more with a company that will insure you.
So if your insurance company does not renew your policy, it does not necessarily mean that you will be charged a higher premium at another insurance company. What you can now do, though is shop around for auto insurance elsewhere.
— Michelle Megna contributed to this story.