Texas Insurance Cancellation Rules

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.