Policy Cancellation/Nonrenewal

What are the reasons for which my policy can be canceled?

After your policy has been in force for 60 days, Arizona law permits the policy to be canceled for the following reasons:

  • Non-payment of premium.
  • 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.

For what reasons can my policy be nonrenewed?

Arizona law permits your policy to be nonrenewed for any reason other than location of residence, age, race, color, religion, sex, national origin, or ancestry of anyone who is an insured.  An insurer may non-renew if the insured establishes a primary residence in a state other than Arizona.

What can I do if I have been declined for insurance coverage, or my policy has been canceled or nonrenewed and I feel that the declination, cancellation or nonrenewal was unfair or in violation of the law?

Within ten days of your receipt of the cancellation or nonrenewal notice, you may write to the Director of Insurance, State of Arizona, Department of Insurance, 100 N 15th Ave # 102, Phoenix, AZ 85007-2624, stating your objection to the insurer's action.

What can I do if I have a complaint in general regarding my auto insurance?

You should first attempt to resolve your concerns with your insurance agent or producer or insurer. However, if you believe you have been treated unfairly, have received poor service, or have some other complaints against your insurer or its agent or producer, you should state the facts, in writing, to the Consumer Services Division, Arizona Department of Insurance, 100 N 15th Ave # 102, Phoenix, AZ 85007-2624, or by calling the Department in Phoenix at (602) 364-2499 or statewide at 1-800-325-2548.

Your written complaint should include the following information:

  • your name, address and telephone number;
  • the name of the insurer or insurance agent or producer about which you are complaining;
  • the policy number; and,
  • the type of insurance and a description of the problem.

What can I do if my policy has been canceled or nonrenewed and I can't find another insurer that will write insurance for me?

If you have tried several insurers and cannot find coverage, 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.  Call (800) 227-4659, or visit their web site at http://www.aipso.com/AZ/ .

Warning - Phishing Scam

We are aware of a phishing scam targeting insurance professionals claiming that the National Association of Insurance Commissioners received a complaint that the professional submitted a falsified claim. This fraudulent email displays the NAIC and CIPR logos, can originate from what appears to be an naic.org or gmail.com email account, and instructs the recipient to click on a link to download the complaint notification.

Certain antivirus products will detect this as a malicious email.  If you receive a similar email and have any concerns, contact the NAIC Service Desk at (816) 783-8500 or [email protected].