What do YOU do when insurance companies screw you over?

What do YOU do when insurance companies screw you over?

I switched from Nationwide to State Farm because my fiance is with State Farm, and they offered me a better rate. Also because my friend from work started working there, he ran the numbers for me and the representative that I used to go to for EVERYTHING at Nationwide left to go back to school...I like having people I know and feel like will take care of our policy. Anyway, it took over a WEEK for my local Nationwide agent to respond to our calls about canceling the policy. We tried to cancel before it would charge me for the next month...but that didnt happen so I was charged 125 bucks for the month of july. My Nationwide agent finally called my State Farm agent and they claimed they got NO faxes NO voicemails and NO calls. I had to call the toll free number to cancel my tenant and auto policies with nationwide, they told me to back-date the cancelations to the date we started the policy with State Farm and that I would get my $125 back in a refund check. I even called back a week later to find out when I would get the checks, they still said I would get $125 back. I got the checks today...one for $13 and the other for $4! Here'-s the best part...I called my local nationwide and she was just like no you won'-t get that money there'-s a penalty. I said no because two reps told me I would get it all back and my State Farm agent said so. She said in the state of North carolina if you cancel mid term they charge you. She wasn'-t a rep she was the office agent. She asked me why I left them and I said i got a better rate and she laughed and said well I hope the savings makes up for the penalty! She thought it was FUNNY, she was SO SO rude to me...I asked how how much the penalty fine was she said well I dont know...i don'-t know how to calculate that. She had NO legitimate answers. I called the toll free number and that person said I would get a penalty fine. She gave me the number for the consumer service office of nationwide, and I'-ve considered contacting the Board of Insurance in my state. What should I do? I'-m pissed because they would have screwed me out of money if I lived check to check...but that money was supposed to go to my electric bill! What should i do :(


There is not much you can do. Every company (including State Farm) will do a short rate "penalty" if you cancel mid term. The rep is probably right that she doesn't know exactly how it is figured since everything is done with a computer these days. It's also not just in NC but every state.The Nationwide agent probably didn't tell you that you'd get every penny back, they probably said something to the effect of "you'll get your money refunded" because every agent (including the state farm agent) knows about short rating.Source(s):Independent Agent


You do receive a short rate penalty for cancelling mid-term. If you provide the total number of days on the policy (6 or 12 months) and the exact number of days your policy was in force, the short rate can be calculated. I know some of the other agents out there remember the wheel used to calculate this rate.I suppose your friend forgot to mention that switching mid-term results in a chort rate cancellation penalty. Good friend, they are really watching out for you.


I talk to them reasonably, to try to solve the problem. Most of the time, that works. If it doesn't work, I file a complaint with my state insurance commissioner.In your case, I'd believe the State Farm agent about not getting any response from your Nationwide agent - that agent isn't going to treat another agency better than they treat you, and they took a week to call YOU back.It's completely true, that there is a short rate penalty for cancelling mid term - usually it's roughly a month's worth of premium, and yes, I've calculated it manually LOTS of times.You don't have a leg to stand on . . . you cancelled mid term, you'll get the penalty. Sorry.



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