jenawade

Changed insurance, old Co. says we owe them?

Recommended Posts

We used to have Hastings Mutual car insurance - they put right on their statements if you don't pay the owed amount by midnight of the due date to continue your coverage for the next month, they completely cancel your insurance on you at midnight. We found out we could go with Progressive for $1,000 less a year and signed up at the end of December 2007. I can't remember now, but it was something like on the day of or day before we would have made another payment to Hastings. Several weeks later, we get a bill from Hastings. Not an insurance bill, the amount was totally different (I can't remember the amount). Never thought to check before, but its on my husbands credit report for $175. Is that even legal? When we switched phone carriers at the end of a billing cycle our old phone company didn't send us a bill. We were using the service through a different provider and paying them. How can an insurance company?

Link to comment
Share on other sites

Progressive did the same thing to me about 2002 or 2003. All I had to do was produce proof that I had acquired other insurance and my account was credited for all time that Progressive had charged me for that I was otherwise insured. I ended up having to pay for 2 days of insurance plus a partial late fee. I have no idea if it was true, but the guy at Progressive that I talked to acted like they were backed up by state and/or federal laws on this.

Link to comment
Share on other sites

It would more likely be state laws that would cause this and not federal laws. Since each state is different when it comes to auto insurance which range from New Hampshire which requires no auto insurance at all to Massachusetts which is heavily regulated, I wish not to make any generalizations.

The biggest issue however is the fact in 49 states, in order to drive a car, you must have an automobile liability policy in force. Each state differs on how to handle what happens if a policy lapses for none payment but generally, if you can prove you had a policy in force on the day the other policy lapsed, you should not run afoul with state laws regarding auto insurance.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.