Is there a cancellation fee for canceling auto insurance that is not effective yet?

Is there a cancellation fee for canceling auto insurance that is not effective yet?

I just switched auto insurance companies a week ago from the suggestion of a local broker (cheaper rates). The company is still in New York State, but is not in my locality. The policy does not go into effect until Jan 26, 2013, but I have already paid the annual premium and my check has been cashed. Is it normal for the company to want the driver'-s license of my 30 year old son that is not on my policy and has his own car and own insurance with another company? After this info was requested I searched online for insurance reviews and read several complaints, even though the company has a high rating with the Better Business Bureau (35 complaints resolved). Will I have trouble getting my money back? I haven'-t used the insurance yet. Can they charge a cancellation fee if it has not gone into effect yet?

Entidtil

My company would refund it without charge but yours may not. You will have to ask them.The reason they asked about your son is because he apparently lives in your household. They need to know about all people in your household who have drivers licenses. You can specifically *exclude* your son (or anyone else) from your coverage and your rates will not be affected. Any company that you use will also ask about your Son or other household members who have a license. You will gain nothing by cancelling because this new company asked.Read below:Any individual, whether related or not (such as a roommate), who resides in a household, may be required to be listed on an auto insurance policy which covers a household vehicle depending upon the insurer's underwriting guidelines. In some states, exclusions are available for both family residents and other household members who do not drive the household vehicle and, therefore, do not require coverage. The insurance company has the right to ask about all licensed household members since typically state laws allow the insurance company to gather information that effects any claims that may arise from the actions of any household member. Thus, they want to know about all these people so they can properly assess their risk and calculate the insurance rates based on this (as well as other) rating factors.

Ken

All auto insurance companies may require those family members residing in the household to be listed and rated on the policy. If your son resides with you or maintains a drivers license at your address the insurance company can and will most likely require his license information. While I was an insurance agent I would routinely ask if there were any others residing at the address with a license. When there were other drivers I would ask for copies of their license, registration and insurance information. Since the law does not allow auto liability coverage by two different companies your company should mark their file noting your son is insured elsewhere.The return premium for a canceled policy is usually 90% of the unearned premium. In your case if you are sure you do not wish to cooperate just tell the agent you wish a flat cancellation of the policy. Ask what paperwork is needed for you to obtain the flat cancellation with full refund.Source(s):I have been an insurance agent for 25+ years and never lost a sale for this kind of a misunderstanding. Good luck.

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