What do I do if my auto insurance company will not refund my full premiums paid after cancellation?

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What do I do if my auto insurance company will not refund my full premiums paid after cancellation?

I signed an cancellation e-document
with my auto insurance company. They
verified by email and phone that the
cancellation had taken place, however,
they continued to collect monthly
premiums out of my checking account
after the fact for about 5 months. I
asked for a refund and they said they
could not give me a full refund even if
my policy was already cancelled and
they should not have been pulling funds
out of my account anyway. They sent a
check for about 75 of a refund. Is
there anything I can do to get the
rest, or at least report them? Or
should I just take what I have and let
it go?

Asked on March 13, 2017 under Insurance Law, Alaska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You can sue them for the money: if the policy was cancelled, they had no right to take or keep your money after the point at which they were no longer providing coverage for you. You would sue them basically for theft: for taking money that is not there. A lawsuit is how you recover money from someone who is not entitled to it. You could also try reporting them to you state's insurance commissioner, but while that agency may help you, you have no control over what they do or do not do; the only mechanism overwhich you would have control would be a lawsuit.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You can sue them for the money: if the policy was cancelled, they had no right to take or keep your money after the point at which they were no longer providing coverage for you. You would sue them basically for theft: for taking money that is not there. A lawsuit is how you recover money from someone who is not entitled to it. You could also try reporting them to you state's insurance commissioner, but while that agency may help you, you have no control over what they do or do not do; the only mechanism overwhich you would have control would be a lawsuit.


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