Cancelling Insurance

[Mimi0861]

Hi,

I'm changing insurance companies this month. My current company drafts my account on the 15th of the month for my premium. I called & asked them to cancel my policy as of the 14th as my new insurance will take affect on the 15th. They tell me I will owe a whole months premium on the 15th because I pay one month ahead. I don't understand that.

Also, can they draft my account again even though I've suspended my recurring payments with them?

Thanks.

 

[FEX Quotes]

Hi,

I'm changing insurance companies this month. My current company drafts my account on the 15th of the month for my premium. I called & asked them to cancel my policy as of the 14th as my new insurance will take affect on the 15th. They tell me I will owe a whole months premium on the 15th because I pay one month ahead. I don't understand that.

Also, can they draft my account again even though I've suspended my recurring payments with them?

Thanks.

Aside from the billing issue, what happens if you have a loss on the 14th?

 

[adjusterjack]

A good argument for NEVER allowing automatic payments from your bank account.

 

[WinoBlues]

Hi,

I'm changing insurance companies this month. My current company drafts my account on the 15th of the month for my premium. I called & asked them to cancel my policy as of the 14th as my new insurance will take affect on the 15th. They tell me I will owe a whole months premium on the 15th because I pay one month ahead. I don't understand that.

Also, can they draft my account again even though I've suspended my recurring payments with them?

Thanks.

Curious, what kind of insurance is this? Property, Life, Health, Commercial?

 

[VolAgent]

A good argument for NEVER allowing automatic payments from your bank account.

There is usually more to the story. And getting the bank to stop it is usually easy. Just ask them not to honor the draft and most will, without a stop payment fee.

I have a feeling this person is beyond on their payments and thus they are not paying in advance but in arrears. If so, she will owe one month's premium if not paid on the 15th. I understand some companies are more aggressive than others in recouping that premium.