Cancel vs Non-renewed?

One of the main reasons I speak to people in regards to insurance is because their policy is being canceled. In other times your policy is being non-renewed. So what is the difference?

When a policy is non-renewed it happens at the yearly renewal. The insurance company can choose to not renew due to exposure management, or too much saturation in one area or they can non-renew due to claims or underwriting guidelines.

When a policy is canceled it can happen mid-term or even at the renewal. There are many reasons for cancellation, however, the main reason is due to the customer not paying the bill on time. Many insurance agents have their customers set up on auto-pay for this specific reason. Sometimes, there is even a discount offered for auto-pay and for paying in one lump sum.

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