State Farm - AIG?

Question

OK...
I currenly have State Farm Car Insurance.
Since I always waited until the last minute to pay my car (shitty *** Galant) insurance, they required me this month to pay up front at least $1074.00, whereas the agent mention that that amout was due upon renewal on October 27,2007 of my recent premium...

Recently I traded in the Galant and the premuim was updated (2037.09) - the total amount from October 27,2007 to APR 27, 2007.
As of November 14, when I got my declarations page, I owed 1,833.37!
WTF...I dont understand lol...

After December 5, I got 30 days to pay at least $1074.00 but Im thinking and Im not going to have insurance in the mean time...Whereas, if I do pay after December 5, they might charge me for the days I didn't have any coverge...

I know it's my fault for always waiting until the last minute but what shoud i do?

I contacted AIG, got a quote and was happy with it...
My intention was going to just start with them fresh on December 7, 2007...

Answer 1

What's the renewal date of your policy? If the renewal date is December 5th, you do NOT have 30 days to pay. Let me explain. The policy is effective December 5th, and the premium is DUE on December 5th, but they can't cancel the policy without giving you written notice (hence, your 25 days). BUT, if this is the RENEWAL, they will cancel effective December 5th - thus creating an instant lapse in coverage. And, as a side note, an uprating from AIG, as now you have a lapse in coverage.

If your renewal date is NOT December 5th, they will come after you for any earned premium that you owe. You're going to owe, anyway, for that new car - I think that's what the $200 difference is - $200 on LAST year's policy for the new car, plus the renewal premium.

You should discuss this with both agents, and go with whichever agent explains it better to you.

Answer 2

work a bit longer if you can. it sounds like you need the money. you need to take care of your basic needs. transportation is one of those. good luck.