Can My Auto Insurance Company Cancel My Policy? 
Yes , they can , but there needs to be a solid reason to do so . For the most part , and this one is the most obvious , a policy can be cancelled for non payment of premium . Now by non payment , that includes one simply not paying the required premium within the grace period -LRB- if there is one -RRB- or bouncing a check for payment and then failing to pay the premium owed and any returned check service fees imposed . Another reason for non renewal can be that the insured just does not meet the underwriting standards of the company as they have been filed with the State Insurance Department . This can be anything from too many minor moving violationtickets or accidents to more serious cases that result in the suspension of one 's license . Unless the reason for cancellation is non payment of premium on a policy that has NO grace period beyond the due date , the insurance company is required to notify in advance of their cancellation action . The number of days in advance can vary by state , but typically it is 30 days . 