How does an auto insurance company make money with a no-cancellation policy?

Answer 1

Simple. There really is no such thing as a no-cancellation policy. Read the fine print and you will see that there are many reasons that the company can and will cancel the policy. Such as not paying the premium, too many claims, suspended license, etc. This was a marketing gimmick devised by AARP to scare older drivers into thinking their insurance company would cancel them because of their age then coming up with a solution in a "no-cancel" policy. AARP is terrible about trying to keep retired persons scared of everything they can come up with then misrepresenting themselves as a solution while in reality just making money off of them. Scams.