Is there a fine for switching Insurance companies?

[Szharkov]

My insurance policy expires in June 2009, but I would like to go to another insurance co.

Here are the details:

2 vehicles (2004 Highlander, 1997 Camry XLE)
3 drivers

I am a secondary driver on the Camry. Just turned 26 and as of today have 1 ticket, and 50/50 accident. I am currently with "Perth Insurance" with no collision or comprehensive coverage and I am paying $260/month because of past tickets.

Three years have passed since most of my tickets so now I want to switch to BelAir and save on the premiums. However the problem is that my policy does not expire for another 6 months. I spoke to my broker and was told I have to pay a months premium to leave them. I do not understand why I am being penalized by leaving them to go to a cheaper option!?!

[scouzer]

Yep, my company would charge me $150 to leave them. Even though they ****ing screwed me.

I got a quote from my broker. Switched the insurance over to them (ING Direct). One week later, SURPRISE! WE WON'T HONOR THAT QUOTE! So they jacked up my rate $500/yr and now I'm required to pay to get out of that. I also lose my insurance loyalty discount when I switch to a new company.

How a practice like that is legal I don't know.

[COSMIC5]

My insurance policy expires in June 2009, but I would like to go to another insurance co.

Here are the details:

2 vehicles (2004 Highlander, 1997 Camry XLE)
3 drivers

I am a secondary driver on the Camry. Just turned 26 and as of today have 1 ticket, and 50/50 accident. I am currently with "Perth Insurance" with no collision or comprehensive coverage and I am paying $260/month because of past tickets.

Three years have passed since most of my tickets so now I want to switch to BelAir and save on the premiums. However the problem is that my policy does not expire for another 6 months. I spoke to my broker and was told I have to pay a months premium to leave them. I do not understand why I am being penalized by leaving them to go to a cheaper option!?!

Most insurance policies are an annual contract. If you cancel mid term, you are cancelled "short rate". for example, if your current policy has been inforce for approx. 181-184 days, the insurer will retain 55% of the premium and refund any unearned premium to you.

How long ago was your at fault accident?

[COSMIC5]

Yep, my company would charge me $150 to leave them. Even though they ****ing screwed me.

I got a quote from my broker. Switched the insurance over to them (ING Direct). One week later, SURPRISE! WE WON'T HONOR THAT QUOTE! So they jacked up my rate $500/yr and now I'm required to pay to get out of that. I also lose my insurance loyalty discount when I switch to a new company.

How a practice like that is legal I don't know.

if it was a mis quote alot of companies will allow a pro-rata cancellation, all the broker has to do is request it from the company and explain the situation to them and they may allow it. What was the error that caused the increase from the quote given..because that does happen on occaision if information given was incorrect to begin with...

[Szharkov]

Most insurance policies are an annual contract. If you cancel mid term, you are cancelled "short rate". for example, if your current policy has been inforce for approx. 181-184 days, the insurer will retain 55% of the premium and refund any unearned premium to you.

How long ago was your at fault accident?

The 50/50 accident occured at the end of October, 2008. In other words very recent.

I did not understand your explanation regarding the 55% charge. All I was told that I will have to pay the total of one months premium if I cancel the contract.

My other concern is, will it be a problem to have two different companies under one household. One insurance co. for my parent's car and another insurance company for my own car.

[COSMIC5]

The 50/50 accident occured at the end of October, 2008. In other words very recent.

I did not understand your explanation regarding the 55% charge. All I was told that I will have to pay the total of one months premium if I cancel the contract.

My other concern is, will it be a problem to have two different companies under one household. One insurance co. for my parent's car and another insurance company for my own car.


This was a general guideline as I don't know the exact number of days your policy has been in force. Call your broker and ask them the %'age of retained premium to be sure. You will have to have your parents call their insurance company and advise of your insurance company and policy number and vise versa.

Since your accident was just recent, you will be rated a 0star. Companies don't care if it was 50/50 or 99/1, an at fault regardless of %'ge of fault is treated as if it was 100% at fault.

[Szharkov]

My policy will expire in June 2009. That means its about 6 months in.

I am just thinking if its better to cancel now and go with a Belair Direct who is offering comprehensive and collision for the same amount as my current insurance where I only have liability!

[COSMIC5]

My policy will expire in June 2009. That means its about 6 months in.

I am just thinking if its better to cancel now and go with a Belair Direct who is offering comprehensive and collision for the same amount as my current insurance where I only have liability!
As long as they have quoted you properly. I would confirm they have you rated a 0 first.

[scouzer]

if it was a mis quote alot of companies will allow a pro-rata cancellation, all the broker has to do is request it from the company and explain the situation to them and they may allow it. What was the error that caused the increase from the quote given..because that does happen on occaision if information given was incorrect to begin with...

I have over 5 years of driving experience, but only like 4 years 11 months of INSURED driving history. My broker considered that a 5 star driver, but ING got the documents and said nope, only a 4 star. So I waited a month and asked them to re-assess my policy since I'm now 5 star in their eyes, nope! Too bad! So I asked for a pro rated cancellation since I was misquoted, nope! Only way out is $150 fee.

[COSMIC5]

I have over 5 years of driving experience, but only like 4 years 11 months of INSURED driving history. My broker considered that a 5 star driver, but ING got the documents and said nope, only a 4 star. So I waited a month and asked them to re-assess my policy since I'm now 5 star in their eyes, nope! Too bad! So I asked for a pro rated cancellation since I was misquoted, nope! Only way out is $150 fee.

Doesn't sound right to me... I deal with these cases all the time and most companies are quite accepting ....most that is..in order to re-assess, they would cancel pro-rata and re-write the policy at a 5Star...perhaps that option was never presented to them... are you still with ING?

[scouzer]

Doesn't sound right to me... I deal with these cases all the time and most companies are quite accepting ....most that is..in order to re-assess, they would cancel pro-rata and re-write the policy at a 5Star...perhaps that option was never presented to them... are you still with ING?

ING flat out said no. I'm still with ING because I don't have a lot of choice.