What You Can Do if Your Insurance Company Cancels You
You might be able to address whatever reason your insurance company cites to non-renew your policy, but you'll need to act fast.

Relax, this isn’t going to be an article about cancel culture. I promise not to go there. Instead, let’s talk about a different type of cancellation — that being from your insurance company. Can an insurance company cancel your insurance policy or non-renew it at any time? What rights do you have if you receive the breakup letter in the mail? What can you do if you still love them and they don’t love you?
An insurance policy is a contract between you and the insurance company. I’m not an attorney, so without going into the details or specifics about contracts, let’s just look at it like it’s a simple deal. This deal says you agree to pay some money, and in exchange, if something occurs, the insurer agrees to pay you some money. At its most fundamental level, that’s what we’re agreeing to when we purchase an insurance product.
So moving along, you have made this purchase, or agreement, with an insurance company. And then one day you check your mailbox. OK, fine, you check your email. And you find this:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Dear You,
RE: Notice of Non-Renewal of Insurance Policy No. 1234
We regret to inform you that your insurance policy, number 1234 with Your Insurance Company, will not be renewed upon its expiration. This decision is in accordance with the terms and conditions of your policy and is based on the following reason(s):
- Reason for Non-Renewal: e.g., change in underwriting criteria, increased risk profile, non-compliance with policy terms, etc.
In compliance with California Insurance Code Section 678.1, we are providing you with this notice at least 60 days prior to the expiration date of your current policy. This will allow you adequate time to secure alternative insurance coverage.
The insurance company is breaking up with you! This is a sample of what your non-renewal letter may look like. It will usually provide your information, the insurer’s information and the state law requiring the notification. So that’s it? Nothing left to do? Well, not entirely.
Renewing your commitment
First, understand that insurance policies renew. This means that every year (for annual policies), both you and the insurance company get the opportunity to renew your vows. Meaning you get to shop around, see if you want to keep your policy or get another, and the insurer gets to decide if it wants to continue working with you. Turns out, state laws do vary, and you will have more flexibility than the insurer will. In this case, the company has decided for some reason not to continue insuring you.
But what if the reason you’re provided is something you can control? Perhaps the company is saying it cannot insure you because you have recently put in a pool and it is unfenced? Or maybe a large tree has had a growth spurt and now hangs traitorously over your roof? If it is something you are ready, willing and able to fix, then by all means, fix it. However, at this point, you are on notice from the insurer. It’s outta here, so if you plan to take actions, then you need to immediately — as in yesterday — let the insurance company know.
The moment you receive a letter like this, reach out to your insurer or agent or broker and tell them your intentions. Tell them you plan to remediate the issues that are causing your policy to be non-renewed. Time is of the essence here. Don’t just do the work and then, the day before your policy cancels, expect to pick up the phone and say, “Hey, y’all, we’re good, we’re cool. I fixed everything,” and have it matter. You need to tell the insurance company what you plan to do and follow up with proof of what you actually did do.
Don’t leave things until the last minute
Also, be sure that you get the work and the proof to the insurer well before the stated non-renewal date. Hey, we all have our computers to contend with, and insurance companies are not immune to the fussiness they can present. Once your policy is marked “to be canceled,” it takes time to change that status, and, gasp, a human being has to — wait for it — look at your proof of the work done and approve it, too. All of this takes time. Do not wait, do not pass Go, do not collect $200.
Try to remember this mantra if you receive a non-renewal notice: SCORE.
S = Speak with your agent/broker or insurance company
C = Confirm work that you are going to get done
O = Offer to do the work
R = Receive proof of the work done
E = Ensure the insurance company has this proof
I like to get things in writing — it tends to keep people honest (not saying by default this isn’t true). If you have it in writing, though, let’s simply say that people are less able to forget things they stated.
Now, remember not all non-renewals will provide a reason you can fix. Sometimes items required are simply not reasonable or possible for you to get done, in which case the countdown clock is ticking, and you should be jumping on the computer and/or leaving no stone unturned to find a new insurer to provide coverage for you.
Related Content
- What Are You Willing to Do for Cheaper Car Insurance?
- Why Has Your Car Insurance Gone Up? (And What You Can Do About It)
- Wait, My Homeowners Insurance Limits What?
- How to Beat Soaring Home and Auto Insurance Premiums
- Eight Reasons Why Your Home Insurance Costs Are Surging
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Karl Susman is an insurance agency owner, insurance expert witness in state, federal and criminal courts, and radio talk show host. For more than 30 years, Karl has helped consumers understand the complex world of insurance. He provides actionable advice and distills complex insurance concepts into understandable options. He appears regularly in the media, offering commentary and analysis of insurance industry news, and advises lawmakers on legislation, programs and policies.
-
Ask the Editor — Tax Questions on What Congress Will Do Next
Ask the Editor In this week's Ask the Editor Q&A, we answer questions from readers on what Congress will do next with taxes.
-
When Tech is Too Much
Our Kiplinger Retirement Report editor, David Crook, sounds off on the everyday annoyances of technology.
-
When You Need Capital Quickly, Think 'Ready, Set, Fund': A Financial Adviser's Strategy
Investors must be able to free up cash to meet short-term needs from time to time. This strategy will help you access capital without derailing your long-term goals.
-
I'm an Estate Planner: Moving Family Assets to a Safe Haven Abroad Could Be a Huge Headache for Your Heirs
In troubled times like these, wealthy clients may seek financial refuge outside of the U.S. But that could cause more tax and estate problems than it solves.
-
Fall Is Tax Time? Yes! Act Now to Make Needed Adjustments
Review your withholdings, contribute to tax-saving HSA and FSA accounts, manage a bonus' impact and adjust for major life events such as weddings and job changes.
-
Board Service in Retirement: The Best Time to Join a Board Is Before You Retire
Many senior executives wait until retirement to take a seat on a corporate board. But making this career move early is a win-win for you and your current organization.
-
A Financial Professional's Take on Long-Term Care Insurance: Buy or Not?
Unless you have about $6,000 burning a hole in your pocket every month, you should make a plan in case you need long-term care. Luckily, you have options.
-
How to Unearth Sustainable Investment in Mining: A Financial Professional's Guide
Mining is likely to play a critical role in the global transition to more environmentally friendly energy resources. Here's how you can balance the opportunities and the risks.
-
Don't Be a Sucker: The Truth About Guarantor and Cosigner Agreements
There are significant financial and relationship risks involved if you agree to be a cosigner or guarantor. Make sure you perform your due diligence, and know exactly what you're getting into, before agreeing to such a commitment.
-
The Hidden Risk Lurking in Most Retirement Plans: Human Behavior
What's one of the differences between a good financial adviser and a great one? The ability to use behavioral coaching to guide clients away from emotional decision-making and toward retirement success.