Can a Texas insurer cancel a new car insurance policy?

Can a Texas insurer cancel a new personal auto policy?

A Texas insurer may cancel a personal automobile insurance policy in more than one situation. One is an early-cancellation window after the policy takes effect. Another is non-payment: according to the Texas Legislature, an insurer may cancel a policy if the named insured does not pay any portion of the premium when due.¹ The early-cancellation rule for Texas personal automobile policies, as the Texas Legislature states it, reads:

An insurer may cancel a personal automobile insurance policy if the policy has been in effect less than 60 days.

What are the time limits for a cancellation and a refund in Texas?

Situation	Time limit under Texas law
Cancellation for non-payment, a fraudulent claim, or a suspended license or registration	Does not take effect until 10 days1 after the insurer mails notice
Refund of unearned premium after a cancelled personal auto policy	Due by the 15th business day2 after the effective date of cancellation or termination

What the sources do not state

The sources used here do not list reasons the insurer must have, or the notice it must give, for the early-cancellation window itself.

Next step

The Texas Legislature publishes the cancellation rules in the Texas Insurance Code. The filing lookup tool is where to look up filing details for a situation.