by Guest » Tue Apr 27, 2010 12:57 pm
My current auto insurance policy expires on 5/1 I found a much better deal through AllState. They have an additional discount available if you sign up with AllState 7 days before your current policy expires. Because we are within 7 days the AllState agent wanted to start the policy effective 5/4 leaving a gap of three days. He said that the old company with say that cover you outside the policy date but they have to for 30 days.
Is this true? I would think to the old company it would just look like the payment was a few days late. it would cost me $100 to have the new policy start on 5/1 but i would hat for something to happen in those three days
Is this true? I would think to the old company it would just look like the payment was a few days late. it would cost me $100 to have the new policy start on 5/1 but i would hat for something to happen in those three days
Posted: Tue Apr 27, 2010 02:35 pm Post Subject:
First, that Allstate agent should be reported to Allstate and they should take _SERIOUS_ actions against him.
Find out if his/her E and O insurance is paid up to date... he is going to be using it sooner then later.
Let's just do this... ask this Allstate agent when your policy with Allstate will end. Then ask him if it will still cover you for 30 days after that. When he says yes... ask for this in writing and see where this goes.
How would this Allstate agent know what another insurance companies policy states? He's telling you _very_ wrong information that he does not know about and/or is just completely incorrect. Depending on the state, carriers need to let you know your policy payment is over due and then give you a grace period to pay. I don't know of any state that allows 30 days (I've seen 7 and 14) but I guess this is possible. _BUT_... if the premium is not paid, then the term date is back dated to the original term date. So you would be without coverage for those 7 days. Would this work? I guess so. If you had an accident within those 7 days you could pay the premium to your old company and have the policy reinstated with no lapse in coverage (providing that this grace period is correct... I'm not sure) but there is just no way in hell that an agent should be recommending this!
Would I do this? If I could verify with my current carrier that there is a grace period... perhaps. But I'd be 100% certain I knew _exactly_ what the situation was and I'd be prepared to take 100% responsibility for this not working out.
Again, if you don't make the payment to your old carrier they will go back and term your policy on the date the policy ends. How does Allstate check the term date with the old carrier? Because your policy _still_ has a term date with a 3 day gap. This is not going to change even with a grace period (ask your current carrier to confirm or deny this info). I'd run this all by this Allstate "agent"
and see what he says. Then I'd deck him in the face for being an royal idiot and screwing people over.
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