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Why is it legal for an auto insurance company to keep your money if you requested a cancellation within 24 hours of the request for the policy?


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Wiki User
2004-06-24 22:21:07
2004-06-24 22:21:07

They can retain policy fees, these fees usually cover the monies they had to pay for staffing at the time your application was generated. In order to cancel your policy seems simple to you, but it is an procedure to the insurance carrier.

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How to cancel your insurance policyYou have the right to obtain insurance from any company you like. You also have the right to change companies or cancel a policy whenever you desire. Just call them up and request cancellation, tell them you no longer want or need the coverage. Most companies will honor your phone request. Some may request that you put it in writing. A fax is usually sufficient.Alternatively if the company or agent is not agreeable, Just stop paying the monthly bill, That always effects a cancellation.Lastly, You can always file a complaint with your states insurance department. The Insurance company has no right to force you to to remain covered through them. Failure to honor your cancellation request is a violation of the states insurance regulations and can subject the company to thousands of dollars in fines by the state.AnswerIn New York there are two ways: 1: Prove to them that you have other insurance2: Return the plates to the DMVIn addition to the above a written request to cancel will also be needed.

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You don't need to write a letter. Call the insurance company and request the form you need to do this. You may also be able to do this online with the company.

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None. If you sell your home, you report that to your home insurance company and request cancellation of the policy as it is no longer needed. You will then be entitled to a refund of any unearned portion of the remainder of your policy term but you would not be refunded for the period of time that the home was still covered.

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When you call you insurance company to cancel, they may want the request in writing...this is helpful if you have an agent, because you can just pay them a visit. The refund from unearned premium should be sent to you within a week of cancellation

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You will probably have to sign a cancellation request in order to cancel your policy in the middle of a term. I suggest that you call the 800 number if you don't have an agent.


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