Question As a Consumer - Farmers Strikes Again!

[ewilkins]

Okay experienced agents, I have a question. My wife and I had our auto insurance with Farmers. We requested to add our newest car but once we found out the sky rocketed cost to do so, decided not to. We also canceled our existing policy and switched carriers.

A few months goes by. Lo and behold I get a collections letter from them. They have advised me that I never paid the deposit on the newest car and that I owe it.

How can this be? In my opinion, the car was never insured if I never paid it. Right? How can I owe them the money if I canceled the policy?

I'm baffled. Can someone please explain? Do I really owe them money?

 

[WinoBlues]

Okay experienced agents, I have a question. My wife and I had our auto insurance with Farmers. We requested to add our newest car but once we found out the sky rocketed cost to do so, decided not to. We also canceled our existing policy and switched carriers.

A few months goes by. Lo and behold I get a collections letter from them. They have advised me that I never paid the deposit on the newest car and that I owe it.

How can this be? In my opinion, the car was never insured if I never paid it. Right? How can I owe them the money if I canceled the policy?

I'm baffled. Can someone please explain? Do I really owe them money?

It has been many years since I sold P&C. It may be because your new car was automatically covered for so many day after purchase. Was there a gap between that date and the start of the new policy?

 

[tins]

Just show them proof of coverage from the new carrier and the cancellation letter.
You shouldn't have any more problems.

 

[Sales71]

You can call farmers 800 and complain about that. They should do a backdated canelation and not charge you for adding the car. Unless your agent just added the car when you called.

 

[Josh]

Just show them proof of coverage from the new carrier and the cancellation letter.
You shouldn't have any more problems.

Exactly.

In their opinion they were on the hook for the claim because word didn't get back to them that you had cancelled. Proof of other insurance will put them at ease about it.

 

[ewilkins]

Thanks everyone. I'll call them and offer to send proof of my new policy. Pain in the butt. Never had this issue when switching carriers before.

FYI...this is why I stopped producing for Farmers. The agent I worked for could never explain anything to me. No one else could give me a good answer either. Not good when dealing with customers who have questions about their policies...questions that you can't answer.