by Guest » Tue Aug 03, 2010 10:04 pm
My Auto policy with Nationwide expired on 4/2/10. I cancelled my policy on 4/1/10 and moved to another company.
Problem: nationwide has gone to a collection agency on me, demanding that I pay them $109.00.
I was already paying them $300.00 a month because I added my 18 yr old to the policy (also the reason for my changing insurance carriers).
I contacted nationwide after being contacted by the collection agency. They stated that the bill was an additional charge incurred on 3/15/10--although the lady that I spoke to could not tell me what the additional charge was for.
In other words, after I paid them the $300.00 on March 1st, they billed me another $109.00 and neglected to tell me about it or send me a bill. I had to find out about this mysterious bill from a collection agency.
When I spoke with the young lady from nationwide to day, I asked the question, why I wasn't told about the additional charge when I notified them to cancel the policy on April 1, 2010--She had no answer. Am I the only one who finds this odd??? Whatever you do, stay away from NATIONWIDE INSURANCE COMPANY!!!!
Problem: nationwide has gone to a collection agency on me, demanding that I pay them $109.00.
I was already paying them $300.00 a month because I added my 18 yr old to the policy (also the reason for my changing insurance carriers).
I contacted nationwide after being contacted by the collection agency. They stated that the bill was an additional charge incurred on 3/15/10--although the lady that I spoke to could not tell me what the additional charge was for.
In other words, after I paid them the $300.00 on March 1st, they billed me another $109.00 and neglected to tell me about it or send me a bill. I had to find out about this mysterious bill from a collection agency.
When I spoke with the young lady from nationwide to day, I asked the question, why I wasn't told about the additional charge when I notified them to cancel the policy on April 1, 2010--She had no answer. Am I the only one who finds this odd??? Whatever you do, stay away from NATIONWIDE INSURANCE COMPANY!!!!
Posted: Tue Aug 03, 2010 10:47 pm Post Subject:
I would basically tell them if they wouldn't tell me the reason; "no ticky, no laundry"
Posted: Tue Aug 03, 2010 10:49 pm Post Subject:
You should not ignore the collection letter. If you are still in the 30-day time frame to respond, you must WRITE to the collection agency (mail USPS Certified with Return Receipt) and request -- under the authority of the Fair Debt Collection Practices Act (FDCPA) -- verification of the debt. You can call the collection agency to request verification of the debt, but it will not "preserve" your rights under the FDCPA as the written letter will.
The original owner of the debt, in this case, Nationwide, will have a limited period of time to provide the verification of the debt or the collection activity must cease.
If/when the verification of the debt arrives, it should provide some clear reason for the charge (if there is one). Possibly, it is a cancellation charge allowed by your policy (something explained in the contract language).
It is not uncommon for a cancellation fee to be included in an Auto Policy. Your new policy may have one. For those who pay their premiums in advance, there is usually a "short-rate cancellation" provision that entitles the insurer to retain a portion of the otherwise unearned premium.
If your policy date is "mid-month" (you state the cancellation date is 4/2, but that could easily follow a 10-day notice of lapse for non-payment of premium), then the $109 could be unpaid premium for a period during which coverage applied, and to which the insurer would be entitled.
Collections on personal insurance policies for unpaid premiums is somewhat rare, since the insurer has the right to terminate coverage for non-payment of premium. Collecting some other policy fee could be the reason, as explained above.
Posted: Thu Sep 16, 2010 10:40 am Post Subject:
That's why it's better to go through the policy contents as soon as they reach you. You should know the conditions under which your insurer may terminate coverage. Over here, the insurer may have retained a small portion of the premium as tcope explained.
Posted: Tue Sep 28, 2010 10:24 pm Post Subject:
I can understand your frustration. I would recommend you contact a supervisor at Nationwide. They should be able to provide you an accurate accounting of what you are being charged. So many things can come into play when cancelling a policy mid-term. Some states allow a company to “short-rate” meaning the insurance company can penalize you for cancelling prior to the policy going full term. There is also a possibility you did not pay enough into the policy to cover the time you were insured. I’m inclined to believe this because of the endorsement you did after policy inception (adding an 18 year old).
If you do not have any luck with Nationwide, contact the State Insurance Department. They’ll get to the bottom of it for you.
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