Can insurance companies automatically renew your policy without your permission?

Answer 1

Please keep in mind that I'm not a licensed agent and that I have never sold insurance, but I did work at an insurance company for over a year. I worked in the U.S., so I don't know if it is much different in other countries.

We sold Homeowners insurance, auto, medical, liability, boat, bike, umbrella and more.

When you get insurance coverage for your home or car the policy is supposed to renew automatically, policies will keep renewing unless there is reason that an insurance company wants you off of the insurance like if you have too many auto accidents and such. Of course, the insurance company still has to cover any big accident before they can remove you.

As far as I know, almost all insurance policies (and the thousands I dealt with when I used to work on quoting and servicing policies) automatically renew.

Now if you specifically said to cancel your policy at the end of your current term or a certain date, and the insurance company renewed/continued it anyway, then they are in trouble, and they must refund you for the time afterwards that you were covered after you asked the policy to stop. Keep in mind I'm not a lawyer though.

Also, in case if you didn't know, you have the right to cancel your policy at anytime, all you have to do is tell your agent to cancel your policy at whichever date that you choose. Many people also aren't aware that you can get new insurance at anytime you like, your policy term doesn't have to be at it's last day before it renews, you can do it at anytime you feel like. Plus, if you want to cancel your policy mid-term or at any day, if you paid ahead of time you must be refunded for the time that you were not covered, in otherwords if you paid for December's insurance on December 1st, but canceled the policy on December 10th, the insurance company owes you the other 20 days you paid on December 1st, so they have to refund you the 20 days worth that you paid for.

Hope this helps.