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Auto Insurance Buyer Beware-after the application fee Pennsylvania Insurance Commissioner, I believe SAFE Auto has found a loophole to fleece their customers. This month I signed up with SAFE Auto insurance on August 8th. I paid an application fee and for this month a total of $92. Last Friday I got a bill for September. Today, Monday, I got a cancellation notice. I called the Customer Service Department of SAFE Auto and was told that they send cancellation notices out to everyone after they bill. I was further told that the Pennsylvania Insurance Commission requires them to send cancellation notices out 15 day prior to cancellation, so they are in the right even though I was not in default. I then told them, however that the other company I had, USAA waited until the account was in default before sending out cancellation notices. I paid them monthly as well. I then asked to have the money automatically debited from my account. Pamela Dawn, President of Customer Service then told me that they did not have this service. If you are a day late with your bill then, SAFE Auto will cancel you and your auto rates will go up if you attempt to purchase auto insurance again. This should be an illegal practice. No company should be able to give notice of cancellation prior to default. Can you imagine if other companies such as your health insurance, your electric or gas company were allowed to terminate your service if a day late with no notification except a preemptive cancellation notice that goes out right after the monthly statement? Also, I will not be able to leave my bills lay out on the table any more. What if a neighbor were to see that I have a cancellation notice for my auto policy, despite the fact that my account is current? This is a form of harassment. Also on the form they sent is a statement that simply reads, “I request the Pennsylvania Insurance Commissioner to review the cancellation of this insurance policy. “ I was told to ignore this statement by Customer Service. However, if I do not sign and return the form and SAFE Auto does cancel my account despite payment I will not have contacted the Commissioner in a timely manner per SAFE Auto and I would have to pay more to get auto insurance again from them or another carrier. I will then have to mail the form out to you every month. I do not like the idea of “crying wolf” however. I also think it is a waste of the Commission’s time. I am stuck now with this provider for the next two months as my rates should lower in October. In the interim, I will pay ahead despite this being a hardship for me at this time. I really do believe that the insurance industry is not regulated enough. Why else would we be hit with preemptive cancellation notices, application fees and surcharges that are not present in quotes? |
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Go, Yep, anachronism is right. I just paid two months in advance so I can have time to look for another carrier. No matter whom I'm dropped by my rates will go up if I'm canceled.
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Go, Not when they have the right to "amend" it at any time. This week I got from them an amendment to their policy. It now states that they can charge me $25 to cancel. Pup
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Oh, the Commissioner called me back. He said that it's all legal. If I want to get it changed I've got to write my State Senator. So what exactly does the Commissioner do then? You'd of thought it was his job to make it fair himself. Big sigh.
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