After one month, auto insurance gets cancelled?

May 30th, 2011
by admin.

I changed auto insurance after my other policy lapsed due to direct deposit mix up. I went with State Farm for both vehicles and paid about 20 dollars more per month for a better policy. I got a letter 2 weeks into coverage stating my policies are being cancelled due to not showing 30 days of coverage at the time of purchase. So I guess they can cover me for a month and ditch me? This don’t sound right. I have zero tickets and zero wrecks and the same goes for my wife. My agent says the rate will go up from 138.00 per month to 245.00 per month! ! ! ! ! WTF?

Posted in: Auto Insurance Policy.
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3 Comments

  1. oklatom says:
    May 16, 2010 at 10:37 pm

    Insurance estimates are that, estimates of what your policy will be, based on information about you. Two weeks into it they discovered that you were not covered at the time of purchase.

    They are not ditching you, but the difference between being covered and not being covered at the time you took the policy will cost you $107 more per month.

    That why you should never let insurance lapse for any reason, if you have to answer “No” to “Are you currently covered?” it can cost a lot.

  2. Turners Tips says:
    May 16, 2010 at 11:15 pm

    You are in a tough spot. You stated that the first policy lapsed due to a direct deposit mix up. Was it a non-payment situation or did you actually get canceled? This might make a difference.

    State Farm only has their product to sell. That doesn’t mean it isn’t a good product but they do not have the markets that a broker might be able to offer you.

    I would suggest that you get all the information in order as to what has happened to you. Find a broker, ask some friends if they know someone who has lots of companies to work with, and see if you can replace this policy with something more suitable.

    You need to get control of your insurance. It sure sounds like it is controlling you and you don’t really understand it. Find someone who can work with you and if it is not an immediate solution you will see the light at the end of the tunnel.

    A quote is only a quote, it is not binding until it is underwritten by the insurers. Check out your options with other companies but be sure to give full disclosure so you don’t find yourself in a pickle again.

    Good luck.

  3. Quincy says:
    May 16, 2010 at 11:19 pm

    Yes, that company has many of the same complaints. But in their defense, you lapsed in your payment to them (though inadvertently) The estimate will raise in that situation. It does suck though. However, you are a consumer, with the outstanding driving record you describe you have other options. Shop around, look at some other companies and do some comparing. You may find out you can save a little more money for the same coverage?
    I hope everything turns out well for you and your family.

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