State Auto Insurance Companies Complaint - Outragious cancellation fees
NORTH CAROLINA -- I had my auto policy with State Auto for many years. This year's policy was from 8/1/06-8/1/07. I paid my dues monthly. I found another less expensive insurance company and cancelled my State Auto policy as of 9/15/06.
I figured they would take the whole month, but instead, they drafted for my full month on 9/1 AND billed me another $158.00.
I wrote the Insurance Commission and according to them, in North Carolina insurance companies can change your contractual policy amount if you cancel your policy (and without your permission or knowledge). They reevaluated my policy to a maximum premium then figured out what the difference for that month would be at this higher rate and billed me that difference.
That made my policy not $211 but $475 and I only used two weeks of that full month. And according to the Insurance Commission is perfectly legal and all the insurance companies in North Carolina practice this "punishment for cancelling" process.
This is outrageous and the people of North Carolina need to speak up or it will continue. We need to contact our congressmen and government officials.