by Guest » Wed Feb 25, 2009 09:57 pm
I cancelled my auto policy with Allstate back in October. They are still trying to bill me! They are now telling me that I need to provide them with a copy of my new policy before they will officially cancel my old policy (and issue me a refund). I'm in Texas. Has anyone ever heard of this before? I feel like since I cancelled my policy with Allstate - that's all they need to know. Who my current insurance company is is none of their business.
Posted: Thu Feb 26, 2009 07:58 am Post Subject:
Have you sent proper cancellation notification to Allstate at the time of canceling the policy? Or you just let the policy lapse for non-payment?
~Jeremy
Posted: Thu Feb 26, 2009 09:10 am Post Subject:
Some insurers charge short-rate if you cancel the auto policy before the term ends. You may need to find out what they are charging for. Further, if they are allowed to debit your account automatically you must stop that by requesting the bank immediately.
Further, you may also register a complaint with the Financial Ombudsman Service.
Posted: Thu Feb 26, 2009 11:18 am Post Subject:
It is better that you start looking for a new insurance. I'm not suggesting you to show it to your current carrier. The Texas financial responsibility laws would require you to continue with your liability coverage. At the same time you'd need to remember that it is necessary for you to carry on with your collision coverage in case you owe money on the car.
Posted: Thu Feb 26, 2009 11:41 pm Post Subject:
Our agency always asks for something in writing when cancelling a policy so the insured can't come back and say that we cancelled it with the wrong date. If you have other coverage you should be able to give them a copy of the dec page so they can backdate the cancellation request.
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Posted: Fri Feb 27, 2009 06:50 am Post Subject:
Our agency always asks for something in writing when cancelling a policy so the insured can't come back and say that we cancelled it with the wrong date.
Well, I think that makes sense. The insurer, to be at the safer side, may demand a written document from the insured in order to cancel the policy. And I too feel that its wise to document every communication between the insured and the carrier in order to avoid confusions. But, can the insurer demand the proof of new coverage from the insured before cancelling the existing one?
Posted: Tue Mar 17, 2009 04:26 pm Post Subject: Proof of new Company
THe reason for the proof is to avoid a lapse in coverage. If it is TX law to have continious liability coverage, it is in your best interest to comply with the request.
Posted: Tue Mar 17, 2009 05:21 pm Post Subject: Thats Odd.
I don't think it's any of their business personally. The MVD may like to know your covered but the insurance company you switched from. Maybe they just want to learn more about their competition. Of course laws pertaining to this may vary from state to state.
Posted: Wed Mar 18, 2009 01:03 am Post Subject:
According to Allstate's agency standards, you can cancel the policy at any time by requesting it in writing, and you do not need proof of new coverage.
Typically the only reason they would need proof of your new policy is if you want to back-date the cancellation. In other words, if you got a new policy on March 1, and on March 17 you told them that you want to cancel the old one effective March 1 because you had obtained new coverage (this is a valid reason for back-dating it), Allstate's agency standards require a copy of the new dec page to prove the duplicate coverage.
Without that, they would cancel it effective on the date that you requested it in writing. There is no proof of anything required in this case.
Christy P.
Posted: Wed Dec 09, 2009 07:07 am Post Subject: policy cancellation
Please cancel my policy
Posted: Wed Dec 09, 2009 04:13 pm Post Subject:
It use to tick me off to have to provide everthing in writing, but I have learned in the last five years how proper documentation can save your behind and cover yourself. The pure legalities of the situation requires that the cancellation be in writing. A car insurance policy is a contract and in order for a contract to be dissolved and retain any pre-paid premiums due back to you, it must be in writing.
What if an ex spouse just wanted to make your life miserable and call in all your credit cards and policies (life, auto, health, and Home) and cancel them via phone message. It is more for your own protection than just to make it more difficult to cancel.
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