Can a car insurance company bind you too a 1 year contract?

Question

Can a car insurance company bind you too a 1 year contract?

Answer 1

They are not forcing you to do anything.  It's up to you if you agree or not so yes they can make that a condition.  You can refuse though.

Answer 2

When you take out a policy with them, they send you a policy booklet with all the terms and conditions in. They usually tell you when you take it out that you have a cooling off period of 7-14 days. If you cancel within that period, they will just charge you for the time you have had on cover, but if you do not cancel within that period, they will assume that you have read the terms and conditions and accepted them.

Some insurers do say in their policies that if you cancel the policy part way through the year, they will not give a refund. They have that rule in place as it costs them money to set up and administer policies and if people cancel early, they can often make a loss based on the set up costs and the money they have taken for the time on cover.

As the responsibility is on you to read the policy booklet when you receive it, if your policy was issued to you with this condition, there is nothing you can do, as you accepted the policy terms by not returning it to them, and as with any contract, it is legally binding to both parties.

Answer 3

no you do not have to buy

Answer 4

Not in MD

If you want some more information, I would check out...

http://www.knowledged.info/go.php?link=i...

Take care.