I neglected to cancel my old car insurance and they are billing me for the grace period. Can they do this, even though I was insured elsewhere.

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

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...

Full Bio →

Written by

UPDATED: Jul 5, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Adrian, MI

Asked on 07/05/2012

I neglected to cancel my old car insurance and they are billing me for the grace period. Can they do this, even though I was insured elsewhere. I thought that not paying the premium would be the same as cancelling. I guess not. But it doesn't seem like they can claim that I was insured by them for this period of time if I was also insured by another company at the same time. If I had an accident during this time period, you can bet they both would not have paid. So how can they claim they were insuring me?

Answer given on July 06, 2012

Many insurance companies automatically renew your auto insurance policy. As the policyholder, you are expected to notify the company if you are not renewing the policy. However, many companies will automatically cancel the policy if the premium is not paid in a certain time frame and there is no charge to you.It appears your insurance company requires notification that you are not renewing the insurance. Since you replaced your insurance you should be able to send the old insurance company a copy of your replacement insurance policy. This will serve as proof of other insurance, and your company should be willing to go back to the renewal date and cancel their policy, since there would be duplicate insurance.Call the old company and advise them you replaced the insurance and that you have a copy of the new policy that you can send them. If they refuse to cancel the insurance, ask to speak to a supervisor since there was duplicate insurance.


IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption