Cancelling Insurance

[reiRei]

I'm moving to BC in about a month, and just got off the phone with my insurance company here, they told me that I would incur a penalty for canceling my insurance, and I was wondering how much the penalty usually is, or does it vary by how long into the term I am... or if anyone has any experience on how I can cancel without incurring a massive penalty.

Thanks guys

[tom_9109]

Ask your broker.

[morpheus256]

Originally posted by tom_9109
Ask your broker.

Fiancee posted as me.....

Try again

[reiRei]

Originally posted by tom_9109
Ask your broker.

I did, he wouldn't give me a figure until I moved.

[bighead2267]

the shorter time you use, the penalty will be more. contact your broker should at least able to give you a ball park(may not be the exact configuration).

[bighead2267]

when is your policy expired? if your policy will be expire in couple mths, may be you should consider cancel on renew and set up ICBC when it come up on renew. most of the company will give you sometimes to keep AB insurance(like 2-3 mths time?)

[Masked Bandit]

It's done as a percentage of your policy value. The closer to the start of the term, the worse it is. If your policy hits renewal in the next couple of months, it will be virtually nothing.

[signature7]

I remember the broker wouldn't tell me the penalty amount until it was processed.. I remember making a thread about a similar situation however when I got the mail from my old insurance company, I got a cheque reimbursing me money.


edit: here's the thread, may or may not help.

http://forums.beyond.ca/st/229658/ca...rance-policy-/

[reiRei]

Originally posted by bighead2267
when is your policy expired? if your policy will be expire in couple mths, may be you should consider cancel on renew and set up ICBC when it come up on renew. most of the company will give you sometimes to keep AB insurance(like 2-3 mths time?)

My policy expires in May next year. So it just renewed a few months ago.

Originally posted by Masked Bandit
It's done as a percentage of your policy value. The closer to the start of the term, the worse it is. If your policy hits renewal in the next couple of months, it will be virtually nothing.

it would be about half way through the term...

so, the penalty would be a pro-rated amount... if you guys don't mind me asking, what is a pro-rate?

[Masked Bandit]

Originally posted by signature7
I remember the broker wouldn't tell me the penalty amount until it was processed.. I remember making a thread about a similar situation however when I got the mail from my old insurance company, I got a cheque reimbursing me money.


edit: here's the thread, may or may not help.

http://forums.beyond.ca/st/229658/ca...rance-policy-/

The "penalty" is just deducted from your refund. If your penalty is going to be $50 but they owe you $125, then $75 is coming your way. This is part of the reason you usually have to drop a two-month down payment to get started, so the insurance company isn't left chasing you for money if you cancel early.


Jesus, these guys have most of the angles covered eh? Bunch of crooks!

[cocoabrova]

Originally posted by reiRei
I'm moving to BC in about a month, and just got off the phone with my insurance company here, they told me that I would incur a penalty for canceling my insurance, and I was wondering how much the penalty usually is, or does it vary by how long into the term I am... or if anyone has any experience on how I can cancel without incurring a massive penalty.

Thanks guys

Why don't you just drive over in BC with your AB insurance til it expires? Just tell your AB insurance company (and ICBC or the police over there if they ask if yo get a ticket or something) that you're working there on/off for a year, and will be coming back to Cowtown on a regular basis. I did this while living in VanCity way back when for a year with no probs, plus ppl all over do it on a regular basis just to save $$ on ICBC insurance....

[reiRei]

Originally posted by cocoabrova


Why don't you just drive over in BC with your AB insurance til it expires? Just tell your AB insurance company (and ICBC or the police over there if they ask if yo get a ticket or something) that you're working there on/off for a year, and will be coming back to Cowtown on a regular basis. I did this while living in VanCity way back when for a year with no probs, plus ppl all over do it on a regular basis just to save $$ on ICBC insurance....

Yeah, I was hoping to be able to drive around for 3 months without changing over my insurance and doing the OOP, but the grace period is only 4 weeks there as opposed to 3 months here.. booo

[Masked Bandit]

Originally posted by reiRei


Yeah, I was hoping to be able to drive around for 3 months without changing over my insurance and doing the OOP, but the grace period is only 4 weeks there as opposed to 3 months here.. booo

Says who? The rules are set by your HOME province, not where you are moving to. AB rules apply, you have three months.

Think about it, AB Insurance are the ones who would be paying the bill if there were an accident, wouldn't they get to decide how long you are covered for?

[5000Audi]

i lived in BC for 7 months and kept my AB insurance the whole time.. got into a car accident while i was out there... in the 4th month and isurance stil covered it.. i never had a problem with it.. as long as you dont let your insurance company know haha.. if you get a ticket out there.. make sure to pay it in alberta

[03ozwhip]

i dont understand....why do you get a penalty for cancelling, when there is no possible way for you to keep them in the first place if youre moving to a different province?? i dont think thats fair at all. its like thyre telling you that you cant move or else you get penalized....wtf is that?? i guess its the rules, but cant this one be bent?....masked bandit, this is to you...

[Masked Bandit]

Originally posted by 03ozwhip
i dont understand....why do you get a penalty for cancelling, when there is no possible way for you to keep them in the first place if youre moving to a different province?? i dont think thats fair at all. its like thyre telling you that you cant move or else you get penalized....wtf is that?? i guess its the rules, but cant this one be bent?....masked bandit, this is to you...

Your insurance policy is a one year contract, and like any other contract, if you want out early it's going to cost you. Now, with that said in this situation where the OP is moving out of province, it's the insurance company that isn't keen on keeping the policy in force until renewal. They would rather see him flip to ICBC so a decent broker should be able to get a "pro-rata" (no penalty) cancellation. This is just another situation where a broker will out perform a direct writer.

And yes, that was a shameless plug for brokers vs. direct writers!

[syrous]

i didnt know that there a cancellation penalty here in calgary... when i canceled my insurance in torono i didnt pay anything...


what about just transfer ur insurance there.. im pretty sure they have a branch there....


"Yeah, I was hoping to be able to drive around for 3 months without changing over my insurance and doing the OOP, but the grace period is only 4 weeks there as opposed to 3 months here.. booo"

how would they know u been there for more than 4weeks? i dont think they'll watch u 24/7.... lol.....

[kaput]

.

[reiRei]

I will likely try to drive around for a few months, and play "silly girl, I forgot the change it over... I didn't know"

Another question I do have, is how they determine a pro-rate, is it just the minimum percentage per month I would have to pay?

[Masked Bandit]

Originally posted by reiRei
I will likely try to drive around for a few months, and play "silly girl, I forgot the change it over... I didn't know"

Another question I do have, is how they determine a pro-rate, is it just the minimum percentage per month I would have to pay?

When you say "pro-rate" I'm assuming you are referring to my use of the term "pro-rata"? If that is the case, they calculate the exact number of DAYS of insurance you have used, figure out your insurance cost per day (annual premium divided by 365 plus the interest fee for monthly payments, usually 3%) and see if you are ahead or behind. 999 times out of 1000 you'll be ahead because of the two month down payment paid when you first started on monthly.

Or did I totally miss the point?