What is the Difference Between "Non-Renewal" and Cancellation" of Insurance?

October 22, 2018

Let's Make Insurance Simple!

According to Insuranceopedia.com: "Cancellation, in the context of insurance, is the termination of the insurance policy either by the insurer or the insured before the end of the period of coverage. A policyholder has a right to cancel their policy, although they are subject to limitations presented by the laws of his state. An insurer, however, may cancel a policy based on valid grounds, such as non-payment of insurance premiums, misrepresentation, or concealment." https://www.insuranceopedia.com/definition/1098/cancellation We can make it simpler: a policy can be “canceled” or “non-renewed” by either party to the insurance contract:

The named insured
The insurance company

“Cancellation” is generally a broader term and encompasses “non-renewal”. From BusinessDictionary.com:
"Non-renewal: Refusal on the part of either the insurer or the insured to renew coverage. This may be done by either party on the expiration date or the policy's anniversary." http://www.businessdictionary.com/definition/nonrenewal.html A “non-renewal” usually connotes that the company chose to cancel the policy as of the renewal/expiration date of the contract. However, this action can be taken by named insured as well. In most jurisdictions, the insured is statutorily or contractually protected from a company cancellation or non-renewal of a policy. In other words, there are specific restrictions or guidelines to which a company must adhere before they can initiate cancellation or non-renewal. The terms are interchangeable, but a “non-renewal” generally refers to a company cancellation as of the date of policy expiration. The term “cancellation” may be performed by either party, with the named insured having more control over the timing of same.\ Have more questions about your insurance? We LOVE to help! Stop in and see us, or give us a call (607) 324-7500

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Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

Factors You Can’t Easily Control These factors are built into your profile, but still play a major role: Your location: Claim trends, traffic, and weather patterns where you principally drive. Your age and driving experience: Especially for younger drivers. Other drivers in your household: Their age and driving history. The vehicle you own: Unique to the Year, Make, Model, and Sub-model’s damageability and cost of parts/labor. These factors significantly influence price differences, but they don’t tell the whole story. Factors You Can Control This is where habits and wise decisions can make a real difference: Your driving habits: Minimizing tickets and accidents can have a direct impact. Your coverage choices: Liability limits, deductibles, and optional coverages can vary widely. Your insurance consistency: Avoiding lapses in coverage. Your annual mileage: How much and how often you drive. Discount opportunities: Bundling, pay-in-full, NYS defensive driving course. Your Insurance Score (Yes—You Can Influence It) Insurance companies use a credit-based insurance score as part of their rating process. While it’s based on financial behaviors, it is not permanent—and it can be improved over time. Simple habits like: Paying bills on time Reducing outstanding debt Avoiding excessive credit inquiries… can positively impact your score—and in turn, your insurance rates. Your insurance score is under your control and a worthy mid to long-term project in and of itself. For more information on what you can do to positively influence your score, see: Great 8 Tip #8 - What's Credit Got to Do with Insurance? How Can I Improve My Auto Insurance Score Why Comparing Rates Doesn’t Work When someone says, “I only pay…” , the uniqueness of their fingerprint is missing. What are their: Deductibles Driving history Insurance score Household profile Coverage limits: what they may be giving up in terms of protection. Price without context can be misleading and discouraging.