Expert: Doctor Settlement - 11/28/2006

Question
I have not been happy with my auto insurance with their cost rising and terrible service.  I renewed in Oct. but want to know if I can cancel and go with another company or do I have to wait until the 6th month period is up in March?  Is there a fee for canceling a policy?

Answer
Dear Philip,

Insurance costs are not the only element of evaluation, but if you are paying more, you should be getting much better coverage and service.  As I am going to tell you below, I would check with your state insurance commissioner about the complaint ratio of any company in your state.

But first, to your question regarding cancellation.  The terms of cancellation will vary with your individual policy and company.  If you have paid for the six month term, there will be financial disincentives for canceling.

I would check with your state insurance commissioner and ask her those same questions and cite the policy. She will know the answer.  You can get the website for your insurance commissioner here: http://www.settlementcentral.com/links.php

One way to argue around the financial disincentive might be to demonstrate that they have not fulfilled their part of the contract because of the defective service.

It may be best to just stay with the company through this term and do some real investigating of the competition in the next four months.

Don't fall into the trap of trying to scrimp on insurance costs.  Take a look at this two page module regarding the smartest way to buy auto insurance http://www.settlementcentral.com/page8006.htm

One way to check out any given company is to make inquiry of your state insurance commissioner and to ask her about the complaint ratio for dollars written in your state.

Also check out the percentage of claims that end up in litigation.  It does you little good to buy insurance if you are going to be more likely the defendant in a lawsuit because your cheap company will not settle its claims for a reasonable amount.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com