What is the difference between the cancellation and non-renewal of an auto policy?

A non-renewal reflects a decision by your insurance company to not offer you a policy any longer, usually as a result of your driving or claims record over a period of time dating from three to five years. Other insurance companies are usually willing to take you on—but at a higher price.

If you fail to pay your premium or accurately report the factors that inform your level of risk, or if you lose driving privileges, auto insurers may elect to cancel your policy at any time. Such a cancellation will make it exceedingly difficult for you to find insurance for a long period of time.