If I purchased a new auto insurance policy, can old company collect for unpaid premiums?

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If I purchased a new auto insurance policy, can old company collect for unpaid premiums?

I called the agent and they failed to cancel the old policy.

Asked on June 15, 2012 under Bankruptcy Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you have overlapping policies for auto insurance where your prior policy was not cancelled, your prior insurance carrier can very well from a legal perspective file a civil action against you for unpaid premiums.

I suggest that you make sure in writing that your prior auto insurance policy is cancelled so that you do not continue incurring monthly premiums that are not being paid.


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