Legal Question About My Car Insurance

[TheSiege]

ok,

so i get a letter in the mail saying that i owe 120 bucks for a early cancelation fee. i dont remember ever signing anything that says i agree to this. i signed up to this insurance back in 2000. they didnt have a policy in place at that time for early cancelation. they admit this. they also said that in 2001 they sent a policy jacket that was 21 pages long saying that there was now a policy of 10% of unearned revenue for the remainder of the policy charged for early cancelation. i never signed anything, and this wasnt certified mail so there isnt any proof that i even got this. my policy is setup for 6 months at a time, and then by paying the seventh month, it then renews my policy for another 6 months. so is there anything i can do?

summary:

1. insurance charged me 120 bucks w/o my consent
2. they said there is a policy in place now, but wasnt when i signed up
3. i dont want to pay it

 

[FoBoT]

life insurance? or what?

talk to the office of your state insurance commissioner , they should be able to help you

http://www.insurance.state.ut.us/consumers.html

 

[TheSiege]

but from the sounds of it, they are in the wrong right?

 

[dirtboy]

If your original contract stated they could change it at any time, then you've got nothing.

 

[Reel]

I have changed insurance multiple times for various reasons such as moving and cheaper prices. I have never been charged a cancellation fee of any sort. However, if they have this in writing and they truly sent it to you, you probably had some short time period where you could respond to it by cancelling your policy or you implicitly accepted it. Find the paperwork and verify if this is in writing and review it to see what the conditions are.

 

[mugs]

I don't think "I never read it" is a viable defense. Credit card comapnies do the same sort of thing all the time, they never use certified mail. I think you got screwed.

 

[TheSiege]

so they can have a contract that says this can change at anytime
then couldnt the annex a policy saying
if you dont cancel within 5 months of the end of the contract we can charge you $300,000

 

[Nutdotnet]

Originally posted by: TheSiege
so they can have a contract that says this can change at anytime
then couldnt the annex a policy saying
if you dont cancel within 5 months of the end of the contract we can charge you $300,000

Yup.