Complaint | Automobile | Cancelation or Non-renewal


Arizona Department of Insurance
100 North 15th Avenue, Suite 261

Phoenix, AZ  85007-2630

Starting July 1, 2020, we became the
Department of Insurance and Financial Institutions (DIFI).

Complaint | Type of Insurance | Auto | Cancellation/Non-renewal

Insurance Companies May Cancel Automobile Insurance Policies Under Some Conditions

After your policy has been in force for 60 days, Arizona law allows an insurance company to cancel your policy for the following reasons per ARS § 20-1631(D):

  • Non-payment of premium. The insurance company must provide a grace period of at least seven days for payment of premium except for the first (initial premium) payment.  Insurance remains in force during the grace period per ARS § 20-1632.01(A).
  • The insurance was obtained through fraudulent misrepresentation.
  • You or anyone who customarily operates your vehicle:
  • Has had his or her driver's license suspended or revoked during the policy period.
  • Becomes permanently disabled and does not produce a certificate from a physician testifying to such person's ability to operate a motor vehicle.
  • Is or has been convicted during the thirty-six months immediately preceding the effective date of the policy or during the policy period of:
  • Criminal negligence, resulting in death, homicide or assault, arising out of the operation of a motor vehicle.
  • Operating a motor vehicle in an intoxicated condition or while under the influence of drugs.
  • Leaving the scene of an accident.
  • Making false statements in an application for a driver's license.
  • Reckless driving.
  • The insurer is placed in rehabilitation or receivership.
  • The insured vehicle which is rated as a private passenger auto is used regularly and frequently for commercial purposes.
  • The director of insurance determines that the continuation of the policy would place the insurer in violation of the laws of Arizona or would jeopardize the solvency of the insurer.

​The insurance company is required by Arizona law (ARS § 20-1632-01(B)) to inform you in writing as to why it canceled your insurance policy.  

Insurance Companies May Elect Not to Renew an Insurance Policy for Almost Any Reason

Arizona law permits your policy to be nonrenewed for any reason OTHER THAN location of residence (if the primary residence is within Arizona), age, race, color, religion, sex, national origin, or ancestry of anyone who is an insured.  An insurance company is required to tell you in writing the reasons it non-renewed your policy.

Your Next Steps

The following are steps you can take:

  • Review the reason your policy was canceled or not renewed and contact your insurance company if you do not understand or agree with their reason.
  • If the insurance company refuses to change its decision after you provide information showing its reason for discontinuing your coverage was incorrect, file a complaint with us and include all the correspondence between you and the insurance company showing the reason the insurance company discontinued your policy, the information you provided to show that reason was incorrect, and the insurance company's response to that information.  
  • Shop around for insurance. The Arizona Department of Insurance has on its "Help with Automobile Insurance" web page a "Premium Comparison" publication that shows premiums charged by different insurers based on hypothetical driver profiles.  
  • If after shopping for insurance you are not able to find another insurance company willing to provide automobile insurance to you, you can be insured through the Arizona Automobile Insurance Plan. You may apply for coverage through this plan by contacting any licensed property and casualty insurance agent or producer. For general information on the plan, you may call or write to: Western Association of Automobile Insurance Plans, P.O. Box 6530 Providence, Rhode Island 02940-6530, (800) 227-4659, or visit their web site at