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Insurance Company Refusing to Cancel Policy

Discussion in 'Automobile & Car Insurance' started by Happygilmore_1964, Jan 5, 2019.

  1. Happygilmore_1964

    Happygilmore_1964 Law Topic Starter New Member

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    Jurisdiction:
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    I now live in Georgia but was recently in South Carolina and required insurance to move a truck I'd given my daughter. She lives and attends school in Florida and her truck was still with me. My insurance agent was closed for the weekend so I obtained insurance on the truck via internet with Progressive. 4 days later, I added the truck to my policy through my agent, then called Progressive to cancel the policy I had with them. I told them I didn't even want a prorated refund, to simply keep the money I'd already paid. They stated that I was required by law to prove to them that I had other coverage before they would cancel my policy with them. I don't know if that I really am required by law to prove anything to them in order to cancel that policy, but even though doing so would be fairly easy to do, hearing that raised my cackles and caused me to become more than a little defiant. I have since written Progressive twice, stating that I had other insurance on the truck and to cancel my policy. I've spoken with their customer service reps at least 3 other times telling them the same thing, but they have informed me that unless I show them proof of my other insurance, they would continue to bill me even without my payment, and would be sending my account to collections. I do not understand how (and a huge IF this is even true) a state law can require a person who hires a company to provide a service to have that company to demand proof of other contract and allow them to forcefully maintain a service unless that customer (me) proves (anything) to them. I'm FIRING them but they're telling me that I can only do so under their terms?
     
  2. army judge

    army judge Super Moderator

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    You're being told that the insurer can't cancel the insurance policy unless you show proof of a current insurance policy, as required by state law.

    If you doubt the veracity of their claim, you can verify it via the SC Insurance Commissioner:

    Contact Us | Department of Insurance, SC - Official Website
     
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  3. Happygilmore_1964

    Happygilmore_1964 Law Topic Starter New Member

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    I have spoken with that office already. The person I spoke with said he wasn't aware of any law that stated I require proof, but if it were him, he'd just show them the proof. I'm not so inclined to be told (ordered?) what I have to do by a company (who I paid for something). I've read over as much of the SC law as I could find as related to insurance coverage and I can only find that I am required to show proof to the state (DMV) of adequate coverage. Regardless, IF this is a law on the books, I would like to know my first step toward changing it or even having a court address the constitutionality of such a law, if in case it actually is a law.
     
  4. mightymoose

    mightymoose Moderator

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    That sounds odd.
    I did a quick search and found no reference to any such legal requirement.
    Have you paid their cancellation fee?
    You might see what your new insurer has to say about it.
     
  5. cbg

    cbg Super Moderator

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    I know nothing of auto insurance law in either state. However, I know a great deal about group health insurance and it is true for group health insurance - you need to show proof of other coverage before you can cancel a health insurance policy at any time but the plan renewal date. That requirement is at the Federal level. So I don't have any trouble believing that it could be true. What's the big deal about simply showing them the proof?
     
  6. hrforme

    hrforme Active Member

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    you might check the fine print in the insurance contract. It might be required there to cancel prior to the end of the insured period. I'd stop being obstinate because all that's going to get you is a ding on your credit score. You admit that it's easy and you know what has been asked. So just do it -- rather than taking it personally and starting a war that you will not win (even if there is no law that requires it)
     
  7. Happygilmore_1964

    Happygilmore_1964 Law Topic Starter New Member

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    The big deal is that to me and I'm SURE many others, that a private company should NOT be allowed to dictate that I maintain a fiduciary relationship with them and obligate me to continue paying them on their terms. I was active duty and served honorably. I expected taking orders from individuals then, but I'm a private citizen now. If this company is making up a law for their benefit or if there is such a law, they shouldn't be allowed to do what they're doing or such a law is very probably unconstitutional (federal or state). I understand the requirement for insurance...I get it...that's a very good thing. This situation isn't that, though. If they do ding my credit, I will dispute it and then, hopefully, find a legal remedy (which is the primary reason I'm here...direction in doing so).
     
  8. KatDini

    KatDini Well-Known Member

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    Read the contract you have with Progressive. That is where your answer lies. o_O
     
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  9. Happygilmore_1964

    Happygilmore_1964 Law Topic Starter New Member

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    Enforce-ability is my point. Buried in a contract does not always make something legally enforceable. Would you accept being required to continue any other service in this way? Cable tv? telephone? utilities? Internet? country club dues? I know I don't accept it and aside from contacting my insurance commissioner's office, I'm hoping for advice as to preparing for the next legal step. I've contacted a state PAC of which I'm a member and they only want me to keep them informed...same as the state insurance commissioner's office. Meanwhile, the insurance company keeps contacting me via email demanding payment or proof of other insurance, with a threat of going to collections.
     
  10. adjusterjack

    adjusterjack Super Moderator

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    You're welcome to fight, fight, fight this terrible affront to your manhood that's being perpetrated by the big bad insurance company but look up "Pyrrhic Victory" first.

    I have changed insurance companies countless times and always provide my new policy documentation as a matter of routine. It's no big deal.

    Actually, there is nothing in any auto insurance policy that requires it. It's an underwriting thing, and how strict the insurance company wants to be depends on the insurance company.
     
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  11. Happygilmore_1964

    Happygilmore_1964 Law Topic Starter New Member

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    Nothing at all to do with manhood or lack of. However, your sarcasm and judgement aren't positive nor helpful. Insurance companies aren't big and bad either, IMHO. I don't think that way. I simply want to change a law, if it is a law, or to change an unethical and unconstitutional behavior if possible.
     
  12. cbg

    cbg Super Moderator

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    Personally, I see nothing unconstitutional or unethical about requiring proof of other coverage.
     
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  13. adjusterjack

    adjusterjack Super Moderator

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    It isn't law, it isn't unethical and it's not unconstitutional. It's an underwriting issue. The insurance people want to make sure they aren't potentially on the hook for a claim after cancelling your policy. Yes, it could happen.

    Look, I'm as stubborn as you are about a lot of things. I've been fighting the VA for 5 months about an error on my monthly copay invoice. It's freaking $2.01 but I'll keep plugging away at them until the morons in billing get it right.

    All you have to do is send in a freaking piece of paper and it's all over.

    Continue your crusade if you like. It's up to you.
     
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  14. hrforme

    hrforme Active Member

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    Go on with your crusade but in the end, they have told you exactly what you need to do to cancel and I pretty much doubt that any judge or jury would side with you since there is a very easy solution. I could understand arguing if you hadn't insured it elsewhere....

    And one reason insurance companies might do this is some states require proof of insurance for drivers licenses, car registration, title changes etc. The insurance company might want to be stopping the fraudulent drivers that purchase insurance for just a few days to prove to legal government authorities that they are covered only to turn around and drop it to go back to being an "uninsured motorist" -- you know the one who pays nothing if he or she hits/injures/maims or kills you because they have no coverage. So realize that there is another side to this coin other than just making you specifically jump through a hoop you disagree with....even if it is not a law, not in the contract, etc. You chose to go into a business/customer relationship with them. You can be stubborn and fight your good fight but in the end, who really wins? Only those that want to use a few days insurance in a fly-by-night way.
     
  15. Happygilmore_1964

    Happygilmore_1964 Law Topic Starter New Member

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    The govt requiring proof of insurance coverage is not unconstitutional. Having a private company require a citizen to prove other coverage or continued charges...another matter altogether.
     
  16. Highwayman

    Highwayman Well-Known Member

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    You need to get over it and just do what you have to to get what you want. You're being ridiculous.

    In NY I cannot cancel my auto insurance unless I either show the insurance company a DMV receipt that shows that I turned in my plates and cancelled my registration, OR I show that I have coverage from another insurer. I'm certain that's NYS government's way to help ensure that there are not uninsured vehicles on the road and it makes perfect sense.
     
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  17. cbg

    cbg Super Moderator

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    So, which article of the Constitution is being violated?
     
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