AAA Cancellation Charges

[amu_uh]

I brought brand new Honda Accord on 9/30/2011. The night I brought it, I called AAA to insure it under my dad policy. The representive notified me that since I am 26 year older I have to have brand new Policy yourself(sole title owner). I was like okey go ahead and give me quote, she said 1100.00 for six month. I knew it was too high so i told her okey, how much is it going to cost me if i cancell say after 3 to 5 days. She replied and said that She can't write policy if you are going to cancelled. Then i told her I wont cancelled it thats fine. Then she faxed me paperwork to the dealership for me to sign. I signed and send it back. I got the car out and did little research on the quote, i got quote for $750 for year from 21st Century. I went ahead and brought the insurance from them and thinking i will cancelled with AAA. I called today the, guy said that it will cost me cancellation fee of 10% of my total premium for the year. I told him send paperwork to me that states the charges where i signed.

Please can insurance company do that??? charge me $200 dollars to cancelled my policy.

 

[leevena]

Yes. More importantly though, what were you thinking? Sounds like you did not do your homework, liked the smell and idea of driving off in a new car, lied to the person about cancelling the policy, and then changed to a lower cost plan.

You just wasted an employees time, not to mention the cost of getting you insured. If it were up to me I would allow them to charge you more.

 

[robb01]

I've never heard of being charged a fee to cancel a policy, I sell AAA in Illinois and I'm 100% sure they don't charge one here.

 

[Sales71]

Its called a short rate charge. They will charge you a cancellation fee if the policy is canceled within the first 6 month. To cover there expenses for people like you who can not even commit to a 6 month policy.

Next time do your research before you buy. The AAA rep makes a living on honest people buying insurance. Just for you to know I got hit by a guy from 21th century insurance there claim process is the worst its been almost a year and its not resolved yet. Good Luck

 

[Guest]

I've never heard of being charged a fee to cancel a policy, I sell AAA in Illinois and I'm 100% sure they don't charge one here.

A number of companies, usually sub-standard companies charge a cancel fee.

I know Progressive does, Bristol West Does, and a few more.

It really isnt incommon

 

[VolAgent]

You lied, you got caught, and now you have to pay the price.

Welcome to being an adult.

 

[robb01]

A number of companies, usually sub-standard companies charge a cancel fee.

I know Progressive does, Bristol West Does, and a few more.

It really isnt incommon

strange, were appointed with foremost, progressive and several other non standard carriers, none of them charge a feel to cancel

 

[leevena]

strange, were appointed with foremost, progressive and several other non standard carriers, none of them charge a feel to cancel

It varies from state to state, but Progressive does have a cancellation fee.

 

[Guest]

It varies from state to state, but Progressive does have a cancellation fee.

Just my point alot of times, everything varies STATE BY STATE, dont judge my state and I wont judge yours.

My answers apply to MY state, if you take my answers and apply them to your state, well, good luck to you!

 

[djs]

A short rate fee of 10% is pretty common, though not all states allow it and not all carriers, even in states that allow it, charge it.

It does cost a company a reasonable amount of money to issue a policy. The short rate on an early cancellation is there to protect thier investment in you.

The cancellation fees will be spelled out in the policy jacket, which you probably didn't actually have when you signed the document saying that you had it and agree to the terms in it.

Dan