Which party can decide not to renew an insurance policy?

The ability to decide not to renew an insurance policy is shared by both the insurer and the insured. The insured may choose not to renew a policy for various reasons, such as finding a better rate, needing different coverage, or being dissatisfied with the service. On the other hand, the insurer has the right to decline renewal based on their underwriting guidelines, claims history of the insured, changes in risk factors, or other business considerations.

This mutual ability to choose not to renew reinforces the principle that both parties are involved in the contractual agreement and have rights at its expiration. The involvement of regulatory bodies, such as the state insurance department, primarily focuses on overseeing practices to protect consumers rather than making individual renewal decisions.