canceling insurance policy.

[signature7]

I just canceled my insurance to go to another company because they've provided me with a great deal.

I faxed in my intent to cancel effective immediately and then I phoned and asked the broker what cancellation or penalty fees i may have to pay but she didn't know as of yet. She said i'd have to wait for the insurance company to process it. I would have to pay from july 24-aug11 but it would be short rated. I am at work so i didn't have much time to talk. I was just wondering if any of you knew exactly what short rated means? And any typical cancellation fees i may have to pay. I was with ING if that makes a difference.

Thanks for any useful and helpful info.

[Senseiz]

Cancellation fee?

I have never heard of that.

Maybe pro-rated.

Because you pay in advance, they will divide your monthly payment (or semi-annual) to the days you have insured with them, and return the remaining balance.

[schocker]

For the cancellation amount I know on my policy, I would have to pay 7% of the remaining amount on the policy.

[signature7]

yeah i was just wondering, because my new one said that ing may have one and i should ask. When I was talking to me broker abuot cancelling she said, " it wouldn't be pro rated but short rated".

[signature7]

holy shit 7 percent? i hope this isn't me because i just got this insurance. I phoned into my old insurance i told them i wanted to buy a new car and they gave me a quote i was happy with and when i purchased my car they sent my insurance in teh mail and the payments were significantly different from what they had originally stated. I haven't even made 1 payment yet so 7 percent is going to be nuts-if that is the same as schocker.

[Grogador]

If you haven't made a payment yet, what's the problem? don't pay them

[signature7]

haha i wish, they'll just withdraw it out of my account. I'm just wondering how much lol.

[schocker]

call them, the percentage is probably different.

[signature7]

any brokers on here?

[The Cosworth]

^^ the brokers dont set it... the insurance company does so even if one of the three came on there isn't much they can know unless they know your case information and work directly for ING

[Masked Bandit]

Being that you are only a couple of weeks into your policy you are going to get hit pretty hard. Expect to be charged about 9% of your annual policy for the time you have used. This is called a "short-rate" cancellation penalty and it's used by all the companies when the client cancels before the end of the natural term.

I bet your new company didn't warn you about this eh?

[signature7]

my annual fee for my old insurance was 5974.46 payments split up 597.44 each month. 9 percent of that i think is 537.66 ( i did the calc. fast). I should also mention that it's ten payments of 597.44 and not 12, when i first got my civic insured they took out 2/12 of the payments right away.


i guess if what mask bandit says is my case then i'm basically paying them (1 months insurance-59.78) when i only used them for 19 days, i guess it's fair, i knew i'd be paying them something because i did use their services for an amount of time.

It's been a couple of days so I will call them tommorow. Thanks a bunch beyond!

edit:My new company actually did warn me about some sort of cancelling fee, they didn't describe it what short rate was or anything but advised me to look into what my other company procedures were.

[Masked Bandit]

Originally posted by signature7
my annual fee for my old insurance was 5974.46 payments split up 597.44 each month. 9 percent of that i think is 537.66 ( i did the calc. fast). I should also mention that it's ten payments of 597.44 and not 12, when i first got my civic insured they took out 2/12 of the payments right away.


i guess if what mask bandit says is my case then i'm basically paying them (1 months insurance-59.78) when i only used them for 19 days, i guess it's fair, i knew i'd be paying them something because i did use their services for an amount of time.

It's been a couple of days so I will call them tommorow. Thanks a bunch beyond!

edit:My new company actually did warn me about some sort of cancelling fee, they didn't describe it what short rate was or anything but advised me to look into what my other company procedures were.

I checked the ING manual this morning for you and it's a bit worse than I thought. For 19 days worth of insurance (5.2% of a year) you are going to be charged 12% of your annual premium. So in the end you are hit about a 7% penalty. With your annual rates that means your "penalty" is $418.

How much cheaper was the new company?

[signature7]

Thanks for the info masked bandit. My new insurance is a little over 4000 dollars a year.

Before i purchased my new car i phoned my old company and they gave me a quote that was just above 5000 dollars, i would've been happy with that but then i get the acutal premium in the mail and it was different.

edit:called and still not processed yet. "Call back friday".
2nd edit: called ing and the girl i spoke with was pretty helpful. She said,"12 percent is accurate" however i paid 1000 dollars roughly on this new annual premium so that would count into the 12 percent and i'd pay the difference.

[johnboy27]

ING is the shits. I am switching my insurance this year also because they are screwing me( not nearly as bad as you though). I am saving 400 bucks a year by switching. On my 2000 dollar a year policy that is pretty good I think.

[Masked Bandit]

Originally posted by signature7
Thanks for the info masked bandit. My new insurance is a little over 4000 dollars a year.

Before i purchased my new car i phoned my old company and they gave me a quote that was just above 5000 dollars, i would've been happy with that but then i get the acutal premium in the mail and it was different.

edit:called and still not processed yet. "Call back friday".
2nd edit: called ing and the girl i spoke with was pretty helpful. She said,"12 percent is accurate" however i paid 1000 dollars roughly on this new annual premium so that would count into the 12 percent and i'd pay the difference.

Well you are still ahead of the game I guess. Who is the new company?

[signature7]

so my broker called and said the cancellation went through. I will be getting 250 dollars back from ING. Thanks for the helpful info though. I hate on waiting for info.