After how many years are personal auto/property policies no longer grounds for cancellation?

The correct timeframe for personal auto and property policies regarding cancellation is five years. This is significant because it reflects the Illinois insurance regulatory framework that balances the interests of insurers and policyholders. After this period, policies typically cannot be canceled solely based on claims history or other previously relevant underwriting factors. This serves as a protection for consumers, ensuring they cannot face cancellation or significant premium increases based on older claims that are not indicative of their current risk profile.

The five-year rule allows policyholders to maintain coverage stability and encourages consistent coverage without the fear of losing their policy based on past claims that may no longer be relevant. As a result, it helps policyholders to plan better for their insurance needs and fosters a more trustworthy relationship with insurers.