Auto insurance - short rate cancellation
8 years 10 months ago #8592
It was nice to come across this website with lot of information and help.
I was wondering if someone can help me with my recent Gieco Auto insurance cancellation.
We bought a car from a dealer with only available insurance at that weekend - Gieco who quoted us astonishing $ 1900 for just 6 months.
We knew it was too high and may get a better deal later on - but we had to pick up the car so we took the deal asking gieco again and again if they have any cancellation fee/extra payment if we cancel the policy before it expires. Gieco staff at that time reassured us that they will only charge us for the days used(prorata) without any extra fees.
Following Monday we changed our insurance through an agent who offered us policy for less than half the price.
But when i called up Gieco to cancel the policy they now tell us that there is a "SHORT-RATE cancellation fee" which doesnt go to gieco but is standard fee which goes to NCDOI. And this fee is 20 percent of our 6 months premium which is $ 380 on top of 2 days of policy days used. Thats 3 months premuim with my new policy to be paid for just 2 days with Gieco.
To defend themselves they have sent me the policy documents - which weren't given when we took the policy over the phone.
Has anyone heard of this short rate cancellation fee? i'm sure it's common to change insurance policies before they expire.is there some way we can fight against it ?
Re:Auto insurance - short rate cancellation
8 years 10 months ago #8593
This is sick.These types of things happened to me several times with telephone companies.I did not had this experience with Insurance.I hope there must be many who have faced such problems.
I think probably you have the only option is to stay with Geico.
Just wondering what car were you trying to insure? Did the drivers have had any accident. I called Geico yesterday ... I got 412$ for 6 months for Toyota highlander.. I think The short rate is about a month’s premium. The cancellation fee varies by state, but is typically $50. Best bet is to share the new quote from the other agency and demand to know why Geico rates are so high. If you never had problems in your driving history .. they will not want to loose you business and renegotiate with you
Re: Auto insurance - short rate cancellation
7 years 5 months ago #15897
It's not Geico. We have the same problem with State Farm. We were talking with an agent from a different company, price shopping for a new quote, and she made us aware of this NC state fee. It sounds bogus to me, why should the governmnet MAKE them charge us a fee? I've been searching everywhere for more information, but to no avail! Hopefully I can find something now that I know it's called a "short rate".
I believe short rate cancellation is standard for NC when a consumer cancels the policy before the expiration period. Therefore, if Geico did not advise you of this feature and stated pro rata cancellation would apply, then the agent misrepresented to you (or forgot about it, or you misunderstood). You can try moving up the chain at Geico with your demand for a pro rata refund. If that fails, you can complain to NCDOI and BBB. Small claims court would be your other option.