I canceled auto insurance in May. I had paid $179.00 since 3/30/08 for liability on 2 vehicles in Georgia.?

Question

I added the 3rd auto w/full coverage 5/15/08 b/4 I canceled. They now claim I owe them $131.00 additional. I informed them today after 11 years(no claims) they had gotten all the money from me they were going to get. They claim they will sue. Can they?

Answer 1

they wont sue for $131 all they will do is keep sending you letters from collections. It's called earned premium you owe it even if you did not have an accident.

Answer 2

Absolutely, it's called earned premium.  Just because you didn't have a claim doesn't mean that if you did they wouldn't have provided coverage, therefore the money is owed to them.  They can also attach your wages.  Also with any auto insurance company there are penalties to cancelling a policy mid-term and who ever wrote your new coverage should have told you that.

Answer 3

For auto insurance the best way to get a good rate is do a policy comparison on car policies. Make certain that you pick similar options with the same limits, auto model, location, etc so that all things are an accurate comparison.



What I always recommend is an internet comparison quote at http://www.InsureAutoNow.info since they have discount insurers and can give multiple prices on auto insurance polices.

Answer 4

Anybody can sue for anything.

You pays your fee, subpoena your defendant and go to court.

But it would cost them more than $131 to sue you, so they probably won't. They'd also rather keep you as a future client.

Call them, explaining to them you've canceled the policy, and that there will not be any claims. Also ask nicely if they'll just cancel the payment or if they'd settle for less, that you'd like to use them again sometime in the future (even if you won't).

Good luck.