Anybody here ever cancelled their auto and/or house insurance? Is it true that you have to explicitly notify the insurance company that you are cancelling the policy prior to its expiry date or can you simply let the old policy expiry on its own and not pay the renewal premium?
Cancelling Insurance
- Thread starter SkyRider
- Start date
When I bought my last car I informed my insurance company that I was picking up a new car. A couple of days later they wanted to stick me with a 35% increase even though the new and the old car were not that far in price. In fact it was the same model except newer model. They also insisted that I install a mileage/GPS tracker device ( at their cost ). I figured that they would be recouping that money sooner or later, and they would know where you have been. I called a few companies and got a price lower than what I had been paying previously. I canceled after three days and even though I was on the clock for three days, they did not charge me.
On a side note, two years later the old company calls me. ( they knew when the policy was up ) they offered me a much more attractive deal. I called my current company and and told them the situation, they bettered the deal. My guess is that if you have a perfectly clean driving record, are in a low risk category and no at fault claims the insurance companies can do wonders for you. If you just take the lowest price, they will not be in a hurry to tell you you can get it for less.
On a side note, two years later the old company calls me. ( they knew when the policy was up ) they offered me a much more attractive deal. I called my current company and and told them the situation, they bettered the deal. My guess is that if you have a perfectly clean driving record, are in a low risk category and no at fault claims the insurance companies can do wonders for you. If you just take the lowest price, they will not be in a hurry to tell you you can get it for less.
Thanks guys. I was under the logical assumption that when a contract has a set expiry date and you call the insurance broker to say you don't like the renewal premium and you don't pay the premium on the due date then the contract expires on the expiry date and coverage ceases on that date.
You don`t have to tell them anything.
If you do not pay for a renewal, then everybody knows that you are no longer a customer.
However, if you are doing an automatic monthly withdrawal, I would make sure that they know to stop at the end of the current period.
Time on risk refers to when a policy is cancelled before the end date.
The cancellation is not instantaneous so there is going to be some additional time that you are covered, time on risk.
If they try to tell you that you owe them for time on risk because they sent you some pink slips, tell them to go fuck themselves.
If you do not pay for a renewal, then everybody knows that you are no longer a customer.
However, if you are doing an automatic monthly withdrawal, I would make sure that they know to stop at the end of the current period.
Time on risk refers to when a policy is cancelled before the end date.
The cancellation is not instantaneous so there is going to be some additional time that you are covered, time on risk.
If they try to tell you that you owe them for time on risk because they sent you some pink slips, tell them to go fuck themselves.
You make perfect sense. It is now obvious the woman from the insurance broker was trying to trick me. She said I should have notified them to cancel the policy. In actual fact there was nothing to cancel because the policy expired (I believe that all legal contracts have an end date). She then said that even though the contract expired I was still covered by the policy. When I questioned her about post expiry coverage she then gave an unintelligible non-answer that basically meant she had no clue what she was saying.Time on risk refers to when a policy is cancelled before the end date.
I cancel my last policy by a phone call to them crooks. Told them over the phone the effective date of my cancelation. If you cancel before the expiry date, they should give you a prorated refund for the time remaining. The company should also send you in the mail, a confirmation of your canceled policy.Thanks guys. I was under the logical assumption that when a contract has a set expiry date and you call the insurance broker to say you don't like the renewal premium and you don't pay the premium on the due date then the contract expires on the expiry date and coverage ceases on that date.
Guys, I realize now that my original post is a bit confusing (unintentional). In my situation I simply allowed the policy to expiry and did not pay the premium on the due date for renewal of the policy. Technically, it is not a cancellation prior to expiry date but simply allowing the policy to naturally expire . It was that darn woman from the insurance broker who said I should have cancelled the policy before the expiry date.
ExactlyYou don`t have to tell them anything.
If you do not pay for a renewal, then everybody knows that you are no longer a customer.
I have walked away from an insurance provider no strings attached
She is a stupid lowlife lying cunt!!You make perfect sense. It is now obvious the woman from the insurance broker was trying to trick me. She said I should have notified them to cancel the policy. In actual fact there was nothing to cancel because the policy expired (I believe that all legal contracts have an end date). She then said that even though the contract expired I was still covered by the policy. When I questioned her about post expiry coverage she then gave an unintelligible non-answer that basically meant she had no clue what she was saying.
She expects you to believe that they would have paid a claim made for something that happened after the contract had expired?
What company was this?
This is ludicrous!!
Most homeowner policies do have a grace period. They recognize that you may be late in your premiums and you are still fully covered. Usually something like 10 days, maybe a month if you pay annually. Yes, they will pay a claim if you pay your premium.She expects you to believe that they would have paid a claim made for something that happened after the contract had expired?
I've not heard of them trying to charge for it though while cancelling
So, they will pay a claim after the expiry date even though you haven't paid your premium on or before the due date?Yes, they will pay a claim if you pay your premium.
Yes, if your policy has a grace period.So, they will pay a claim after the expiry date even though you haven't paid your premium on or before the due date?
Think of as whether you have coverage. The company offers coverage until the policy is terminated. If they don't receive a premium on time, they are unsure whether you intend to terminate or not. They will terminate the policy at the end of the grace period if you haven't caught up on premiums by then, and send you notice of the termination.
Remember that insurance contracts have to comply with legislation. I think the provincial insurance acts spell out that grace periods for premiums must be defined. They may be set at zero, so no effective grace period.
Thanks. Interesting. So, what is the typical "grace period"? Is it anywhere from zero to whatever?Yes, if your policy has a grace period.
Think of as whether you have coverage. The company offers coverage until the policy is terminated. If they don't receive a premium on time, they are unsure whether you intend to terminate or not. They will terminate the policy at the end of the grace period if you haven't caught up on premiums by then, and send you notice of the termination.
Remember that insurance contracts have to comply with legislation. I think the provincial insurance acts spell out that grace periods for premiums must be defined. They may be set at zero, so no effective grace period.
If you are a good customer who is late renewing one time, they may accept your late payment and claim that your coverage was not disrupted.Most homeowner policies do have a grace period. They recognize that you may be late in your premiums and you are still fully covered. Usually something like 10 days, maybe a month if you pay annually. Yes, they will pay a claim if you pay your premium.
I've not heard of them trying to charge for it though while cancelling
However, I sure as hell wouldn`t want to depend on this if my house had burned down during this time.
I am quite sure that they would say I am fucked.
Especially if I simply let my policy expire and had not contacted them about renewing and making a late payment.
I don't know if you actually read what I wrote, or don't believe me, but it will depend whether a grace period is built into your contract. If not, I would not rely on goodwill at all - that's insane. The insurance company will laugh at you.If you are a good customer who is late renewing one time, they may accept your late payment and claim that your coverage was not disrupted.
However, I sure as hell wouldn`t want to depend on this if my house had burned down during this time.
I am quite sure that they would say I am fucked.
Especially if I simply let my policy expire and had not contacted them about renewing and making a late payment.
Here's some material from the Insurance Act of Ontario. I haven't traced through where all this is applicable, but gives you the idea about how grace periods work if applicable:
http://www.ontario.ca/laws/statute/90i08
Period of grace
(2) Where a premium, other than the initial premium, is not paid at the time it is due, the premium may be paid within a period of grace of,
(a) thirty days or, in the case of an industrial contract, twenty-eight days from and excluding the day on which the premium is due; or
(b) the number of days, if any, specified in the contract for payment of an overdue premium,
whichever is the longer period.
Contract in force during grace period
(3) Where the happening of the event upon which the insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract shall be deemed to be in effect as if the premium had been paid at the time it was due and, except in the case of group insurance or of creditor’s group insurance, the amount of the premium may be deducted from the insurance money. 2012, c. 8, Sched. 23, s. 17 (2).
Look at this CAA brochure for an example:
https://www.caaneo.on.ca/sites/all/files/CAANEO_MAPP Brochure.pdf
XIV. REINSTATEMENT OF INSURANCE – GRACE PERIOD
If insurance has terminated by reason of the non-payment of premium
on the premium due date, insurance can be reinstated subject to the
following conditions:
a. if the premium is paid within 30 days of day of the month in which
the premium became due (Grace Period), the reinstatement will date
back and be effective on the premium due date and be of the same
force and effect as if the additional premium had been paid by the
date it became due;
b. if the premium has not been paid within the 30 day Grace Period,
the Member cannot reinstate the insurance following the Grace
Period. A new policy will have to be purchased
