I moved to a different state and I had to get new car insurance with a different company. Yesterday I got a bill in the mail from the old insurer saying that my new balance is $390. I have to pay at least $130 within 30 days.
My old insurer doesn't provide coverage in my new state. I thought that when I switched, all my financial obligations to them would be over.
Why do I have to pay off a balance when I'm no longer insured with them?
Any help would be appreciated, thanks,
2007-01-20 02:00:07 · 5 answers · asked by Krysta 2 in Cars & Transportation ➔ Insurance & Registration
Sheesh! A load of bad answers again!
When you cancel a policy, the insurance company recalculates the total premium for the period that the policy was in force. Then they deduct any payments you have already made. If there's a balance due, you get a bill. If there's an excess, they cut you a check.
You have to pay for the period of time that the policy was in force. Obviously the payments you had already made were not enough to cover the total premium due. So, yes, you must pay this.
Although most people make monthly payments on their insurance, it's not sold month-to-month. It's sold by the policy term, either 6 or 12 months. The insurance company sent you a statement that explained the adjusted premium, the payments you've already made, and the balance due. Pay it. If you have any questions, call your old insurance company and they'll explain it all to you.
2007-01-20 03:08:03 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Did you even tell your insurer you had moved out of their territory? They would have provided insurance for the transition period, up to 90 days, but governed by the laws of your old and new states. Yes, you would have to pay for that time. Did you send them a cancellation? Did you send them proof of new insurance coverage? Don't just ignore this, because a cancellation for non-payment will go on your record, and will cause problems with insurance in the future. Contact them, work out the cancellation date, and the amount owed to that date. It may be less than you think, or the bill may, indeed already have been adjusted. We can only guess because we don't know exactly what you have communicated to your previous insurer.
2007-01-20 18:13:44 · answer #2 · answered by Fred C 7 · 0⤊ 0⤋
No, when you switched you still had financial obligations to the old company for the service they provided up until and including the date your policy ended with them.
Sounds like you just read the bill to the balance owed, freaked out and stopped reading.
Read it again. I'm sure there is a statement there that explains why that balance remains due. If you're confused about it, call your old agent and ask about it, I'm sure they can explain it much better than we can here.
2007-01-20 03:46:04 · answer #3 · answered by oklatom 7 · 2⤊ 0⤋
OK, what you need to do is find out exactly what your monthly obligations were to the previous company. If it is not the $390 they are billing you for, then you are not obligated to pay. You tell them that they can not bill you any further for services that you are not receiving. They can not do that legally. They can only charge your for services that you have received and not paid for. Hope this helps.
2007-01-20 02:05:35 · answer #4 · answered by protruckdriver71 3 · 0⤊ 3⤋
Im sure all reading this would love to know what company billed you!
You are not obligated to pay for any service that is no longer necessary. Simple solution, Dont Pay IT!!
2007-01-20 02:14:32 · answer #5 · answered by Mike E 3 · 0⤊ 3⤋