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.

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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: Jul 5, 2012

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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.

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