Closing bill from dropped insurance company
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UPDATED: Feb 29, 2012
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Insurance Question from Lovelock, NV
Asked on 02/29/2012
Closing bill from dropped insurance company I recently changed my farm insurance from one company to another. The new insurance covered me from the last date the old insurance coverage stopped. A month later I get a bill from the old insurance for lapse in coverage for two weeks. If I provide proof that I was covered for those two weeks by the new insurance company, does the old company still have he right to charge me? No, I did not call the old company to stop the insurance, and this is not a cancellation fee. Thanks.
Answer given on March 05, 2012
If you are replacing your insurance with another company, you should always call the previous company and advise them to cancel the policy. While some policies will automatically lapse back to the renewal date, there are some policies that require a written or verbal request for cancellation.You can provide the previous insurance company with a copy of your replacement policy, showing the date your replaced coverage. This should be sufficient to cancel your policy back to that date and no money should be owed. However, make sure you receive an ecknowledgement that the insurance company has cancelled the policy as of the date you requested. Continue to follow up until you get something in writing.Your new agent should also be able to help you get the old policy properly cancelled. Ask them if they can fax a copy of the replacement policy on your behalf, and confirm that they have done so.
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