Answer:

Grounds for non-renewal include:

1. the policy is covering a vehicle being operated by a member of the household who is not eligible for coverage

2. the policy is covering a vehicle that is being operated by someone suffering from a physical or mental impairment that affects that person’s ability to operate the vehicle safely.

Other reasons that the company deems appropriate and in accordance with their filed and approved underwriting rules – this might include too many violations or conviction for drunken driving.

Insurance company is no longer operating in your state.

There are two methods to end auto insurance coverage by a current car insurance company: cancellation and nonrenewal. The first takes place when the auto insurance that had been providing coverage decides not to sell insurance to you anymore, and the second usually occurs when the policyholder neglects to pay the auto insurance company a premium. Though neither are looked upon highly by auto insurance providers, cancellation generally makes it more difficult to get car insurance than a nonrenewal does.

When your policy expires, either you or your car insurance company can decide not to renew your auto insurance policy.

Nonrenewal simply means your car insurance company will no longer sell you auto insurance.

Nonrenewal means that the current car insurance policy elected not to renew the insurance policy when it came time to being due again. Most often, this happens because the person covered on the policy makes too many claims during the time they were insured, such as driving under the influence, too many at-fault accidents, or too many tickets during the last three to five years. In the event of nonrenewal, the auto insurance company terminates the contract with the policyholder and, depending on the location, the driver of the car would have to find comparative car insurance. The insurer is required to send a notice of nonrenewal – usually thirty days – with the reason to drop your car insurance policy.

If you don't pay your car insurance premium on time, the auto insurance company has the option to terminate or cancel the car insurance policy. Your car insurance policy can also be canceled for misrepresenting information car insurance companies find necessary about your risk level as a driver or losing your driver's license due to driving while intoxicated or with an expired, revoked or suspended license. Some auto insurance companies may cancel your policy at any time, given that they provide the amount of notice required by law, just because you are found to be a nondesirable driver.

State laws do not always spell out the circumstances under which an car insurance company can nonrenew car insurance policies.

Most states will mail out a letter telling the policyholder that they neglected to pay last month's bill and give a certain amount of time, like ten days, to send in the proper amount of cash before cancellation takes place. After the car insurance company receives the payment, if it is prior to the cancellation date, most will send letters of reinstatement. In most cases, you will be required to pay the premium plus a late fee and an additional amount to cover any gaps between car insurance coverage.

Some states will not reinstate policyholders if they are more than one day late with payment, even if payment was mailed. Each state has different laws which apply to drivers that don't pay their insurance premium on their car insurance policy, but it is universal that once your car insurance policy has been canceled, it is really difficult to find car insurance coverage elsewhere.

Most auto insurance companies will raise the price of the monthly insurance premium if the driver it is providing coverage for cannot keep their vehicle insured. Some providers may require high-risk policyholders to pay for an entire year's worth of car insurance up front if there is a cancellation on your record. You may also have to pay a higher amount for years because you let your coverage slip a little bit. The one universal car insurance law: the higher risk the driver, the higher cost for the auto insurance.

In any case, when an auto insurance company decides not to renew your policy, it must send you a notice. State laws vary, but an car insurance company normally must give you between 10 and 30 days notice of nonrenewal. The notice may contain the reason the car insurance company decided to drop your auto insurance policy, but it might not. If the reason for nonrenewal is not included in the notice and you want to know, you'll have to send a written request to the insurer. If you receive a reason and believe it to be unfair, the Insurance Information Institute recommends that you contact your car insurance company's consumer affairs division or call your state's department of insurance.