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Cancelling auto policy

Cancelling auto policy

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  • DanieH DanieH's Avatar 03-05-10 | 10:18 AM
  • I want to get added to DH policy, since its cheaper. I want to know what happens in this situation w/ my ins company...if I cancel, do I have to give them the remainder of the money right away or do they mail a bill? My payroll deduction ended and electric funds will be taken out at the end of the month.

    Last edited by DanieH; 03-05-10 at 10:34 AM..
  • rudolphia rudolphia's Avatar 03-05-10 | 11:04 AM
  • So you pay monthly? If that's the case, I would think you would be paying for the month up front and would be all paid up. Generally, insurance companies don't let your policy go into arrears (meaning you haven't paid for the portion of the policy currently in effect). The normal practice is to have you pay for six months of the policy up front, or pay a higher monthly amount in advance of the month to be covered.
Thank you rudolphia!
DanieH (03-05-10)
  • DanieH DanieH's Avatar 03-05-10 | 11:40 AM
  • Yes...through payroll deduction it was biweekly. I was told the last payment was Feb 26th, which was taken out of my paycheck..which was the last time for payroll deductions. Its scheduled for March 28th to be taken out...Im assuming for Marchs payment.

    I had an issue w/ them and they refund some money. I checked online banking and even though it was submitted on there end, I think I will just wait til monday to make sure it gets cleared before I cancel w/ them.
  • Dopey406 Dopey406's Avatar 03-05-10 | 01:53 PM
  • Well, like Rudi said, auto policies generally are paid "in advance" so you pay ahead of schedule because if you're in an accident and you haven't paid for that time, they won't cover you. So I'm guessing that if hte next payment isn't due until March 28th, you're covered until then. So it's likely you'll get a prorated refund.

    and remember to come back and let us know what happened.
Thank you Dopey406!
DanieH (03-05-10)