Texas Insurance Code §551.104 limits mid-term cancellation. After the first 60 days of coverage, insurers may only cancel for specific reasons listed in the statute.
Reasons for mid-term cancellation (after 60 days)
- Non-payment of premium
- Driver license suspension of a covered driver
- Fraud or material misrepresentation
- Submission of a fraudulent claim
Notice requirements
- Non-payment: at least 10 days written notice
- Other reasons: at least 30 days written notice
- Notice must be sent to the named insured's last known address
First 60 days
During the first 60 days, the insurer can cancel for almost any underwriting reason — they're essentially completing underwriting in real time. Most cancellations during this window come from undisclosed drivers, tickets, or accidents found on MVR pulls.
Your rights when cancelled
- Right to written notice with reason
- Right to short-rate refund on unearned premium
- Right to appeal to TDI for non-payment disputes when payment was actually made
What to do immediately
Don't drive uninsured for even a day. Bind replacement coverage before the cancellation takes effect — even a one-day gap triggers surcharges and possible SR-22 requirements.
Frequently asked questions
Can my insurance company cancel my policy mid-term in Texas?
Only for specific reasons after the first 60 days — non-payment, license suspension, fraud, or fraudulent claims.
How much notice must my insurer give before cancellation?
10 days for non-payment, 30 days for other reasons.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.