Check your original contract very carefully, but I'm pretty sure that they cannot do that. What state are you in? Your best bet would be to contact whichever agency handles insurance regulation, or even the DMV could probably point you to the right place. Seems very fishy to me though. I've changed insurances quite a bit over the years, whenever my insurance company thought they'd raise my rates to something ridiculous, and never had anyone charge me for not renewing.