My daughter renewed her car insurance last december,in january she changed banks cancelling her direct debit, she rang the insurance company to arrange a new direct debit with her new bank.The insurance company attempted to use the cancelled debit when it was not able to obtain any money it cancelled her insurance it at no time notified her of this,but says if she can prove she rang them (unfortunatley she cannot) they will reinstate her insurance ,if not tough!
2007-03-04 08:06:49 · 12 answers · asked by Charles H 1 in Cars & Transportation ➔ Insurance & Registration
It is not legal to cancel without receiving notification of cancellation. Your daughter would have received a few notices. One that her withdrawal did not go through and that she needed to make a payment and she would have received an official notice of cancellation. They mail them to the last known address on the policy. If her address changed and she did not notify them they would not have known where to mail it.
I hate to say this but this happens often in insurance agencies. People will call and tell me that they called but we document every phone call and I can go back and see if the person called. Many people when they go thru this have so much on their mind that they do forget to call. You can contact the insurance agency, explaining what happened and see if they will be able to reinstate her policy. If they are not able or willing she will have to start a new policy with higher rates. She has been uninsured for over 30 days.
Good Luck
2007-03-04 08:14:37 · answer #1 · answered by blb 5 · 0⤊ 0⤋
This is a sticky wicked situation. When she changed banks and the insurance company had no record of her changing banks, the insurance company, in our computer age environment, said the insured did not pay the premium and thus cancelled the insurance. Granted, whoever she talked to should have input the new information, but since that person didn't and there is no record of the insurance company being notified your daughter is caught in the middle. Out of curiosity, on the date or a day after the automatic debit was due and hadn't been processed, why didn't she contact the insurance company?
I would go to the agent where she bought the policy, explain the situation and let him see what he can do. An agent wants to keep his clients and can usually cut through some of the red tape and BS in a company.
2007-03-04 08:27:31 · answer #2 · answered by don n 6 · 0⤊ 0⤋
When she changed banks the Direct Debit SHOULD have been transferred automatically. Either the banks failed to transfer the account properly, or the insurers failed to act on the information. However if she moved the account herself(by opening one and closing the other) then this won't happen and she has to do everything herself. She has a duty to make sure she is insured, and the policy details probably say that a missed payment immediately cancels the policy without further notice.
2007-03-04 19:35:46 · answer #3 · answered by The original Peter G 7 · 0⤊ 0⤋
Sorry, but the insurance company would have notified her of intention to cancel for nonpayment when she changed banks, and would have given her 30 days to get it fixed. You can't do a direct debit over the phone in most cases, you have to sign a form giving them permission to take it from your account, and a check so they can get the routing numbers to do so. I don't think your daughter is telling you everything here.
2007-03-04 09:10:23 · answer #4 · answered by oklatom 7 · 1⤊ 1⤋
Insurance companies always try to contact, and many of them do an automatic 2nd presentation. If they cannot contact the insured, and the money isn't there, cancellation is automatic. She needs to go to another insurer, and disclose what happened. I hear on a regular basis "nobody called me", but it isn't true. Registered mail isn't picked up, wrong phone numbers are given and never changed, people have wrong addresses on file, there are so many reasons, but insurance companies do try to contact.
2007-03-04 08:28:33 · answer #5 · answered by Fred C 7 · 1⤊ 0⤋
i think that is a little harsh, but that is an insurance company for you. she should have notified them herself. insuance companies will cancel you in a hearbeat if they dont get payment. i don't know if it is legal, but who knows. i guess it depends what company you are using and where you live. i am sure they have ways to cancel you and have there be nothing you can do about it.
2007-03-04 08:16:15 · answer #6 · answered by SuzyBelle04 6 · 0⤊ 0⤋
Most big insurance companies record every conversation that comes in they may be able to locate the conversation.
2007-03-04 11:55:50 · answer #7 · answered by hyperfamilyman 3 · 1⤊ 0⤋
Yes. They are under NO obligation to notify anyone of cancelation due to nonpayment.
2007-03-04 15:20:16 · answer #8 · answered by Anonymous · 0⤊ 0⤋
they have to give her 7 days notice but if she can prove the account changed and they went in under the wrong details they should be able to reinstate it
2007-03-06 08:48:36 · answer #9 · answered by Mrs.H 5 · 0⤊ 0⤋
yes as your daughter made the change. They likely thought she was not wanting the insurance as they could not get any money
they deemed she did not want it.
2007-03-04 08:14:31 · answer #10 · answered by sparky 4 · 0⤊ 0⤋