Auto Insurance Co. Wrongfully Canceled Policies in NY

Aerial shot of new york skyscrapersAn investigation into one complaint about AAA auto insurance made to the New York Department of Insurance (DOI) revealed a slew of wrongfully canceled policies that had been terminated due to unpaid premiums.

According to the DOI, regulators helped 73 people in restoring their policies after the insurer canceled them without issuing notifications of the amounts due.

New York Insurance Superintendent James Wrynn says that this amounted to a violation of state regulations.

“Consumers must be treated fairly, and there are requirements in place to make sure that happens,” says Wrynn. “One of those requirements is the obligation of an insurance company to make sure a consumer knows how much is owed on a premium before the insurer acts to cancel for non-payment.”

According to state law, a car insurance coverage provider must also provide policyholders with at least 15 days to make a payment on the policy before the cancelation goes into effect.

The policies for cancelation differ from state to state, and consumers who feel that their policies have been canceled wrongfully should check with their state’s DOI.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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