Watch Out! Your Arizona Auto Insurance Can be Non-Renewed!
For years, Arizona had one of the toughest non-renewal laws on the books compared to many other states. That has all changed as of August 6, 2016.
In the past, insurance companies couldn’t non-renew or cancel your Arizona Auto Insurance policy except for very specific reasons.
For example, if you got a DUI or other criminal driving violation, that was a reason that you could be non-renewed. If the same driver in your household had 3 or more At-Fault accidents in a 36 month period over a certain dollar amount threshold then your policy could be non-renewed. If you lied or misrepresented yourself on the insurance application you could be non-renewed or canceled. Or, if you didn’t pay on time then you could be canceled/non-renewed.
In my 26 years as a licensed insurance professional in Arizona I’ve never had a client be non-renewed except for a DUI and some who didn’t pay on time. It was very rare that someone would be canceled because of too many accidents because of how the law was written.
But the law is changing!
The new law basically states that the insurance company can non-renew or cancel an Arizona Auto insurance policy for any reason provided the insurance company provides 45 days prior, written notice to the policyholder and the non-renewal/cancellation must not be for a discriminatory reason such as race, ethnic background, nationality, religion, etc.
You might be thinking, my insurance company can non-renew my policy at the next renewal which may bring you some worry. Don’t be worried! The insurance companies will have to renew your policy one more time in order to provide you with their endorsement explaining in the insurance contract how they will handle non-renewing and cancelling insurance policies going forward. So, you won’t be canceled right away but you should know how your insurance company will non-renew policies in the future.
My recommendation is that you read your policy thoroughly, especially the non-renewal provision because over the coming 6 months to a year (if you have an annual policy) these provisions will be changing. It’s up to you to read your policy and ask questions of your agent or insurance company.
If you want the most flexibility with your Arizona auto insurance then it would be wise to work with an Independent Insurance agent who represents multiple insurance companies and can find you the best policy at the most competitive prices. An Independent Insurance Agent works for you, the consumer, not the insurance company and has your best interest in mind when searching for insurance coverage for you and your family.
If you have any questions about this recent change in the law here in Arizona please post it in the comments here or call our office in Gilbert, AZ. (480) 336-2707.
Author Richard Morris
Richard Morris, an independent insurance agent in Gilbert, Arizona has been serving and helping Arizona families and businesses with all their insurance needs for over 26 years. If you’re in Gilbert, Chandler, Tempe, Mesa, Queen Creek, San Tan Valley, Scottsdale, or Phoenix he and his staff can help you with your family insurance plan. Visit his website at http://www.southwestpremierinsuranceagency.com to see all the ways he can help you with your insurance needs or call the office at (480) 336-2707 or toll free at (888) 907-9349. If you’re near Gilbert, AZ then feel free to stop by his office at 7 E Palo Verde St, #11, Gilbert, AZ. This is one block south of Elliot on Gilbert Road. Connect with Rich on Facebook, Google+, and Twitter.