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View Full Version : Auto Insurance Legal Advice Needed


KRZY403
10-28-2009, 05:33 PM
So I have a 17 year old brother that just bought a car and being the idiot that he is he got it insured yesterday for for a ridiculous premium of ~$360 a month. So today I made him go cancel his policy and the guys at Palmer said they're going to keep ~$300 for an early cancellation fee. Are they able to do this? Since he's a minor, the contract shouldn't be enforcible and any amount that he's paid should be returned to him right?
Eken9
10-28-2009, 05:36 PM
All insurance companys charge a cancellation fee as far as I know...freak man, $350.00 a month crazy..
Xtrema
10-28-2009, 05:40 PM
Cancellation fee is standard practice.

But you are right on the latter. 17 yr old cannot enter binding contracts. The agent screwed up for not asking his birth date or missed it.

Your brother lucked out. But good luck on getting money back.

Did he get comprehensive coverage?
KRZY403
10-28-2009, 05:50 PM
He got collision and comprehensive. Assuming that the early cancellation fee is stated in the contract. If the contract isn't enforceable on a minor then shouldn't the fee be voided?
Masked Bandit
10-29-2009, 07:57 AM
This is standard procedure and your brother is out his money. And yes a minor can enter into a binding contract for the purpose of auto insurance. Do you think every 16 & 17 year old out there with insurance isn't legally bound?
403Gemini
10-29-2009, 08:45 AM
Originally posted by Masked Bandit
This is standard procedure and your brother is out his money. And yes a minor can enter into a binding contract for the purpose of auto insurance. Do you think every 16 & 17 year old out there with insurance isn't legally bound?

^^ This.
meowmeow
10-29-2009, 08:53 AM
Hes out the money for sure, ALWAYS read your policy!
rpalm35
10-29-2009, 08:53 AM
I was legally bound to my insurance contract when I got my first vehicle at 16. I was also notified about a cancellation fee.

Maybe your brother just didn't hear the broker say it? Because, my broker said it so quickly to me I had to ask him to repeat. Your brother could have just been really excited to finally start driving his new car that he didn't listen carefully?

Who was the person your brother dealt with?