• Insurance Carrier: American Insurance
  • State: IL

Consumer Complaint:

On 5/30 I called American Ins. to start auto ins. on 5 cars. On 6/3/08, I had to cancel. I sent them cancellation letters. Am I entitled to a refund of some sort, since I did cancel within 3 days? They told me it would take up to 6 weeks to get a refund, but as of today, I have never received a dime and I know they don’t plan to either. So I would like to know if it is right for them to keep the initial premium, if I cancelled 3 days after I started the policy. Just need to know, thank you! So what do I do now? How do I get them to pay me back? Send a letter \”return receipt.\”

Insurance Expert Answer:

NO, you may have had 3 days of coverage, but you'll in essence pay for about 50 days as you're \"short rated.\" If they say it will take a few months -- and I have no idea why it should take that long, but 30 days is not unreasonable -- keep on demanding the money back or ask one of the lawyers you work for to send the company a letter. Some good news and bad news. If you canceled you'll get a \"short rate\" refund. That means that you'll not get 361/365ths of the premium back, but more like 320/365ths back.