Insurers believe that insured items in deteriorating condition are more likely to have claims filed on them or could cause an injury. Therefore many insurers choose not to insure unrepaired property or automobiles. If the policyholder had speeding tickets or other driving violations, an insurance company may consider that a greater risk and not renew the auto policy. The size of any deductibles written into policies can be another factor. A deductible is an amount of money the policyholder pays for any replacements or repairs before the insurer begins to pay.
Credit history can also affect a policyholder's ability to get insurance.
Insurers may consider bad credit an indicator of a greater possibility of property loss or accident. It's also important to have a good credit rating if a property owner is not renewed and has to look for another insurer. Insurers may establish their own standards for nonrenewals. In applying those standards, insurers, by law, may not unfairly discriminate.