Cancelling policy after 6 months
 

Just a general question for anyone who knows about insurance. I got insured on my Civic (93 coupe) for $400 because of a serious ticket (100% increase in premiums). My ticket will be coming off in April which would mean that my insurance would go down to $200, but my insurance company told me that I have to pay the $400 for the whole policy (1 year). So what I am wondering is what would happen if I just cancelled my policy with the current company and got insurance through a different one that would provide me with the lower quote. My other option would be to tell the current company to give me the lower rate and I would stay with them.......what do you think???

Matt

i would just change insurance companies matt, if they already told you that you have to keep paying the 400 for the rest of your policy, why do that if u can just switch to something cheaper:shrugs:

Ask them again

Sorry it has taken a while for me to respond, I have been out of the house working.

There is no way that it is fair that I should keep paying the rate that was quoted when I had the major ticket. I think I will wait until the ticket comes off and let them know what my plans are, I will either continue with them if they reduce my rate down to the market price or I will jump ship.

It's perfectly fair. Did your rates go up as a result of that ticket immediately upon your conviction? Of course not. The hike wouldn't have kicked in until your next renewal.

So why is it unfair that a drop should also not kick in until the next renewal?

Your rate wouldn't go up right away because they wouldn't find out about it. I am pretty sure that if you told them about a new ticket, or they did a abstract search, they wouldn't have a problem jacking up the price of the policy or even cancelling it.

Matt

So you didn't inform them of the ticket right after you were convicted of it?

That's a violation of your insurance contract. That means you got a free ride with an undisclosed ticket for some time. And you're talking about "them" being unfair?

You want to have your cake and eat it too.

Sorry, I think I wrote that down wrong.

No, when I set up the policy I informed them of the ticket, that's what is making the rate so high. I was trying to explain in response to your comment, that they would jack your rate up if you recieved a new ticket and informed them of it. You said that when you are in a policy and you recieve a ticket, they wouldn't do anything about your policy until the policy expired and it was time to renew. My situation is similar, but in a reverse role.

Well, in any case, you can always cancel your policy early and move on to anothe company.

But.... many companies will charge you a fee for early cancellation. That will eat into any savings you may gain by going elsewhere.

Many companies will also give you customer loyalty renewal discounts if you stay with them long enough. You won't get those savings if you jump companies.

The net result is that changing companies will not save you anything substantial in the medium run.

Thanks for the advise, I guess I will have to check with the insurance company and see what the fine print says.

Matt