Can an Insurance Company Force me to continue remaining their client?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: May 31, 2012

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Insurance Question from New Smyrna, FL

Asked on 05/31/2012

Can an Insurance Company Force me to continue remaining their client? I sent them a check I send them to cover my boat for a year. They cashed the cheque and the year expired. Now they insist I pay them again, this time with a 70% price hike. I never claimed anything from them. I want nothing to di with them. They have not been re-engaged. How can I pay for a service never rendered? Is there not a principle called quid pro quo? Or freedom of choice?

Answer given on June 03, 2012

Many insurance policies are considered an automatic renewal. If you do not request that a policy be renewed, the policy will automatically renew and a billing sent. If you did not want to continue the insurance coverage, you should contact te company and advise them that you do not wish to continue the insurance.If you have obtained insurance elsewhere, you can provide the old insurance company with a copy of the new policy. They should be willing to cancel the policy back to the date of the new policy since duplicate insurance is not considered proper insurance.If you did not replace the insurance, the insurance company may be able to charge you for the time the policy was in force. They most likely have already issued a cancellation notice for non-payment of the premium so you would not owe the entire year’s premium, only the time their policy was in force. If you received the cancellation noticee, and no intention of keeping the policy, you should have called them when you got the notice. There is an expectation that you are to notify them if you do not want to continue the insurance.


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