Overhaulin'

if you stop paying your car insurance, the company cancels it, right?

i talked to the agent beforehand and asked if i stopped paying, what will happen to the insurance. and he said the insurance policy will be canceled automatically. i have a 6 months policy with progressive insurance, but i stopped paying it after 4 months. and then today the the collection called and said i owe money to progressive insurance and he also said once i pay for it, the coverage will continue. but my question is, should i pay for it? i sold the car thats why i stopped paying it knowing that it will be automatically cancelled.

Public Comments

1. That was dumb. You should have notified the insurance company to cancel as soon as you sold the car. Now you have a collection on your hands.
2. Do not pay them. You sold the car silly. The person you sold it to will now get insurance for himself. Call collection and tell them you no longer have the car. and you cancelled the insurance. (Progressive is a sneaky company anyway) Don't let them ruin your credit.
3. if you no longer have the car..why would you pay the insurance? Depending on when you sold the car..you should have cancelled the insurance yourself..you may have been due a refund.
4. Yes, but they have to follow the state law in how they can cancel it. When it cancels, Progressive charges a "cancellation fee" of usually $50. So if your money runs out Jan 1st, but the state says they have to give two weeks written notice before cancelling your policy, you still OWE them for the time they covered you - even if you didn't pay enough to keep the policy active. PLUS the cancellation fee. Yes, you should pay it - because eventually they'll haunt you until you do - it's an unpaid debt. If you were PLANNING On cancelling the policy, you should have talked to your agent, so you could get it cancelled in the most cost effective way. Instead, it just sounded like you were looking for free insurance.