When changing auto insurance companies, am I bound by law to show the new policy to the old insurance company?

When changing auto insurance companies, am I bound by law to show the new policy to the old insurance company?

Say, today is 1st Feb'-09. I had an auto policy (from Farmers) that expired on 1st Jan'-09. Today, I buy a new policy from a different insurance company(AAA).When I discontinue service with Farmers, am I bound to show the new insurance policy to them? Also, will I get charged for the period from 1st Jan'-09 to 31st Jan'-09 by Farmers?

Guest

Simple answer, No.Source(s):www.landainsurance.com

If you were to have asked Farmer's to cancel as of a previous date -and had NO replacement coverage as of that requested cancel date, then Farmers would have been allowed to charge you up until the date you actually requested cancelation. If you had already paid the premium in advance, you'd get a refund of everything but the 30 days during which there was no replacement coverage. If you has paid NOTHING yet to Farmers, you'd get a bill for the 30 days.Example: On Feb 1, you tell Farmers to cancel you as of Jan 1 -a backdated cancelation. But, you had no replacement coverage as of Jan 1. Farmers then cancels Feb 1, and charges you for the 30 days in between (or refunds for all but those 30 days, if you had paid them in advance).Why is this? Because if you had a claim during those 30 days, Farmer's would have been on the hook to pay it. And if it were a big liability claim, you'd want them to pay it. Furthermore, a claim for an occurrence during that 30 days could come in several months later -a classic whiplash claim, for example.Now, if you DID have replacement coverage in force as of the requested cancelation date, Farmers will want to see proof of it. You needn't show then the actual policy- a copy of the front (declarations) page is enough, or else a copy of an "Evidence of insurance card" will do the trick. You might also be required to sign a statement saying that to the best of your knowledge there are no claims nor any circumstances that might lead to a claim during the 30 days. Give 'em that and they know there WAS other insurance as of the date you want to cancel -even if that date is in the past. You'd get your premium back, or, if there was no premium paid (and no prior balances anywhere), you'd be billed nothing.So, chances are you'll be charged up until the date you asked for cancelation, because you can't show you had other coverage for the 30 days PRIOR to that- this is a good thing: now you're out of hot water with the DMV.The reason for this is that the state is very interested in coverage "being there" in case of an accident- therefore, insurance is REQUIRED. Likewise, if you cancel for any reason, you are required to have replacement coverage so the insurance is continuous. Understandably, the last thing Farmers (or any carrier) wants is to be on the hook for a claim during a period of time when they weren't getting their premium. Thus, they won't let go of the policy until they see evidence that something else was actually there. If they don't have that, the state will stick THEM with your claim.The policy is based on a simple promise: "If you'll pay us a premium, will pay or defend your covered losses that are reported to us." Unquestionably, had there been a claim during the 30 days after you WANTED cancelation, Farmers would have had to pay. Likewise, they're entitled to the premium for that period of time. The only exception is when there is other coverage in force, and, quite understandably, Farmers wants proof of that.If you do have 30 empty days, the state might discover it. It takes awhile, sometimes, but eventaully the DMV computers will see the gap, and you'll be asked to show THEM evidence of coverage. If you can't ptovide it, penalties and fines will vary according to the state you're in: typically, you'll pay a fine plus what the premium would have been had you been covered through the state auto insurance fund -by whatever name it goes. Not all states check every record -some do every tenth, or observe another formula.Try this site to find the best auto insurancehttp://best-auto-ins-usa.blogspot.com/Here you can get quotes from different auto insurance companies in your area, its the best way to find an affordable auto insurance with a reliable company.

mbrcatz

No, you are not bound by law to show them the old policy.But if you don't, then you don't get a discount for having continuous coverage with no lapse. If they gave you that discount in the initial quote, they'll take it away, and you'll get charged more.If you have a lapse in coverage of more than 30 days, many, many insurance companies flat out won't take you. The ones that will, will charge you a lot more.But none will "charge you" for insurance, for time when you didn't HAVE any. It just makes your rates for the next year, much higher. Same as if you don't show them the prior policy.

phosizzle

Nope. You dont have to show them your old policy at all.Source(s):http://www.garage411.com/AutoInsurance

teenautoinsquote

The new insurance company will not ask you for proof of policy, but since your policy has lapsed you will not get the discount of having continuous auto insurance coverage.You will not have to pay for the period you did not have insurance, however some insurance companies will not give you a quote or decline your insurance because of the break in period.Please try the websites for a free car insurance quote. Compare the rates and coverages given before you take a decision to opt for your insurance.http://www.compareautoinsurancequote411.…http://www.teenautoinsquote.comSource(s):http://www.compareautoinsurancequote411.…http://www.teenautoinsquote.com

Ask

insurance

Popular Q&A

What are different types of insurances & how do they work?
To name just a few:Mortgage insuranceAccidental death and dismemberment insuranceBusiness overhead expense disability insuranceCasualty insuranceContents insuranceCorporate-owned life insuranceCrime insuranceCritical illness insuranceCrop insuranceDental insuranceDeposit insuranceDisability...

What is the least expensive auto insurance company?
I don't know about least expensive auto insurance company because all are not equal. Some charge for all incidents (not matter what it is, accident or stop light violation) and some don't. Just get a quote with most ins co (progressive, travelers, metlife, titan nd others) then you will...

How much should i sell my car for?
Hey. You're probably right that ?4800 is a bit steep, but anyone who was interested in that would try and get the price down so you should always put a price that's higher than you want to sell for i.e. ?4800 would probably sell for ?4400/4000. You car has a low insurance group, is economical...

Does the dmv check your insurance policy?
Usually many auto insurers have a desk right in the dealers showroom to insure you right there and then with your own set of plates and everything. Buying privately, you better have the insurance in hand(timing is everything and wouldn't you know it, you got caught in an inspection by the...

What is the cheapest auto insurance in NYC?
no answer to this/too many things depend on the quote/age/driving history etc/ins is local and you have to call locally to get er done/these insurance questions only create spam /sorrySource(s):used car dlr nj