by Campeon3 » Tue Jul 03, 2012 01:36 pm
I sended a fax to Allstate ins to please cancell my auto and home insurance and they charge me with a policy cancellation adjustment of $-310.19 for the autos then $-362.00 for the home ins? Can they do that?..we always pay on time for 11 years and my policy did not expired until August 24 of 2012...
Posted: Tue Jul 03, 2012 02:44 pm Post Subject:
Your 19 duplicate posts were unnecessary and have been deleted.
To answer your question, YES, the insurance company may withhold a cancellation fee when YOU CANCEL THEM before the end of the policy term. That cancellation fee is stated in your contract, and is known as a "short rate refund."
HAVE YOU READ YOUR CONTRACT to see what it says about cancellation and return premiums? Probably not.
You don't mention what your total premium was, or the period for which you paid premiums (I assume the homeowner's was paid on an annual basis). And you don't tell us how far in advance of the August 24 renewal date you cancelled, so there is no way to evaluate whether you might have been overcharged.
This function is computerized, so there is only a small likelihood that there is a mistake in the return premium you received.
we always pay on time for 11 years
Makes absolutely no difference. You purchase these forms of insurance ONE YEAR AT A TIME. You use it in that year or you don't. Nothing carries over into the next year.
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