Insurance Question

[CapnCrunch]

I had insurance on my bike the past 2 years. I paid for the whole year upfront, each time. This year I no longer have the bike, so I just let it expire.

The insurance company recently started calling me and saying I owe them money for the 2 months after it expired up until the company decided to cancel my policy for "non-payment". Do I legally owe these people money? It seems odd that the can just renew my policy for 2 months without any payment and claim I owe them for it. Especially if I don't have the bike anymore.

WTF?

I know this about a motorcycle, but it still applies to general insurance on vehicles so I posted in here. :banghead:

[spike98]

Most insurance companies auto-renew and send you snail mail notification of such. You most likely will have to pay. It may also make your premiums go up as you have now had insurance cancelled on you.

[CapnCrunch]

Originally posted by spike98
Most insurance companies auto-renew and send you snail mail notification of such. You most likely will have to pay. It may also make your premiums go up as you have now had insurance cancelled on you.

Wouldn't I owe them for a full year then? Don't they need to have some sort of proof that I owe them this money? Like a document that I've signed agreeing to use them for another year?

I've had policies cancelled a lot when I was younger. It's never affected anything.

[spike98]

Like i said, it MAY effect your premium.

You wouldn't owe them a full year, why would you? They must have an internal policy that if a payment is missed for two consecutive months that they terminate service. Also, i would bet they have a document saying that they auto-renew every year unless requested by the customer...which would be the policy you signed when you first got the insurance.

I am not an insurance agent so i realy dont know the in's of the business. I would suggest you call them and ask. If you didn't cancel and just let it expire and its the policy of that broker to auto-renew...pay it.

[CapnCrunch]

Originally posted by spike98
Like i said, it MAY effect your premium.

You wouldn't owe them a full year, why would you? They must have an internal policy that if a payment is missed for two consecutive months that they terminate service. Also, i would bet they have a document saying that they auto-renew every year unless requested by the customer...which would be the policy you signed when you first got the insurance.

I am not an insurance agent so i realy dont know the in's of the business. I would suggest you call them and ask. If you didn't cancel and just let it expire and its the policy of that broker to auto-renew...pay it.

Would it matter if the broker switched me over to a different company and I never signed anything? I never signed an agreement with the current insurance provider. I think I'm just going to write a nasty letter asking for all sorts of misc documents and see what they come up with. The broker clearly said I owe the insurance company money, not the broker.

It's not about the money as it's only a few hundred bucks. I've had 3 different agents within the brokerage, and this is the second (possibly 3rd) insurance company they've used.

I just hate being hounded by these morons. They tried back charging me for the policy from 2 years ago saying they made a mistake and I owe them money.

[freshprince1]

My guess is the was probably a clause somewhere staing that you are on an auto-renew policy. Since you probably signed this policy, they have proof of you giving this process the "okay". You should probably pay the two months and try to get away unscathed. It is your responsibility to cancel your insurance if you sell your car/bike. This sounds like your mistake. Man up and stop looking for a loophole.

[CapnCrunch]

Originally posted by freshprince1
My guess is the was probably a clause somewhere staing that you are on an auto-renew policy. Since you probably signed this policy, they have proof of you giving this process the "okay". You should probably pay the two months and try to get away unscathed. It is your responsibility to cancel your insurance if you sell your car/bike. This sounds like your mistake. Man up and stop looking for a loophole.

I want a loophole dammit.

[TYMSMNY]

If you have a bill of sale which dates to BEFORE the policy expired, then you can have your broker try and cancel the payment owed. Otherwise, ALL insurance policies in Alberta auto-renew.

[bighead2267]

get a BOS to proof the bike was sold and do a sweet talk with the broker. most of them have no problem to ask insurance company(i'm assuming this is a Nordic policy)flat cancel instead of cancel for non-payment.

honestly, even you pay off the EP. it will still consider as cancel for non-payment. in order to get this record erase, you need to make full payment and sign the cancel request(assuming the solution i suggest above is not valid for you) and they will cancel in short rate which mean you will loss quite a few $$$$$.


good luck

[Masked Bandit]

In Alberta all auto insurance policies automatically renew. If you simply ignore the renewal then the insurance company eventually send a registered letter to the last address on file notifying you they are cancelling your policy for non-payment of premium.

Your specific problem is that the company waited a couple weeks after the renewal (not uncommon) and then sent the registered letter (by law has to give another 15 days notice). Thus in the end you do in fact owe that money.

As others have suggested if you have a copy of the B.O.S. you may be able to get your broker to fix this.

[guessboi]

^ +1 with masked bandit...
Get a B.O.S and hopefully your broker has a good relationship with your current insurance company and they will backdate your cancellation as far as they can with your sold date in your B.O.S

We get asked all the time about "If I stop paying for my insurance, is it automatically cancelled?"

No. As an insurance policy is a legal contract, we are required to get signatures and / or the return of policy documentation in order to cancel the contract. You should contact your insurance broker in all circumstances where a policy is to be cancelled at any time during the policy term or when it is time for renewal. If you do stop making payments for your insurance, your policy will be cancelled for non-payment by registered letter by the insurance company, and this will adversely affect your ability to obtain insurance in the future.

[CapnCrunch]

Originally posted by Masked Bandit
In Alberta all auto insurance policies automatically renew. If you simply ignore the renewal then the insurance company eventually send a registered letter to the last address on file notifying you they are cancelling your policy for non-payment of premium.

Your specific problem is that the company waited a couple weeks after the renewal (not uncommon) and then sent the registered letter (by law has to give another 15 days notice). Thus in the end you do in fact owe that money.

As others have suggested if you have a copy of the B.O.S. you may be able to get your broker to fix this.

So the fact I received no registered letter means nothing? Just asking. I'll probably head down next week and pay, it's just annoying. I figured leaving it to expire would mean it's all done for. Oh well.

[Masked Bandit]

Originally posted by CapnCrunch


So the fact I received no registered letter means nothing? Just asking. I'll probably head down next week and pay, it's just annoying. I figured leaving it to expire would mean it's all done for. Oh well.

Did they have your current address on the policy? I find that's usually the culprit.

[tom_9109]

Originally posted by CapnCrunch


So the fact I received no registered letter means nothing? Just asking. I'll probably head down next week and pay, it's just annoying. I figured leaving it to expire would mean it's all done for. Oh well.



I bet that if your policy auto cancelled instead of renewal at the end of the term and you got in an accident without coverage that you'd blame the insurance company too.