There is a big difference between an insurance company canceling a policy and choosing not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:
1. You fail to pay the premium
2. You have committed fraud or made serious misrepresentations on your application
3. Your drivers license has been revoked or suspended.
Policy cancellation is known as surrender from policy owner's perspective, if the insurer cancel the policy its known as voiding the policy.
Non renewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Depending on the state you live in, your insurance company must give you a certain number of days notice and explain the reason for not renewing before it drops your policy.
A policy is cancelled when coverage ceases due to surrender of the policy, non-renewal or voidance. Non-renewal is simply the non-payment of renewal premiums.
