• Report: #148247

Complaint Review: GMAC Insurance

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  • Submitted: Fri, July 01, 2005
  • Updated: Tue, November 22, 2005

  • Reported By:Elizabeth City North Carolina
GMAC Insurance
500 W. Fifth Street PO Box 3799 Winston-Salem, North Carolina U.S.A.

GMAC Insurance, Central, Elizabeth City, Charging without notice for un-used months on policy Winston, Salem, Elizabeth City North Carolina

*Consumer Comment: Explanation of earned premium

*Consumer Suggestion: It's called Earned Premium

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I started a auto policy with this company or ASSHOLES should I say... and I purchased full coverage and I'd pay every month and every 6 months I would re-new, well it was about 10 months into the policy and I got a quote from Progressive saying that I could be paying $150.93 a month for full coverage compared to my policy with GMAC which was $316.44 a month!!! Well naturally I wanted to switch, It was about a week and a half before the next months payment was due for GMAC so I went down and had the policy canceled after I had already purchased the policy with Progressive and the lady told me she was setting the cancel date for the GMAC as the same day I bought the Progressive policy, which was days before the actual date I was there cancelling it, but whatever. So a couple weeks later a get this notice in the mail saying that I owe them $300!!

So I called and the lady and she said she would look into it. She called me back saying that I did owe the money that it was due before I canceled, which come to find out was a lie just to get me to pay the money. I found that out because they sent me to a collection agency and they told me that I owed the $300 for the remainder time of the policy, I told them I wasnt insured for that time so theres NO WAY IN HELL your going to get $300 for some stupid rule you made up to get money outta me. I was never notified that you would have to pay the rest of the policy even if you werent using it. So needless to say they still waste their paper sending me bills and calling me and I just keep telling them they aint getting it!!! Its the principal of the matter!!!

Crystal
Elizabeth City, North Carolina
U.S.A.

This report was posted on Ripoff Report on 07/01/2005 05:33 PM and is a permanent record located here: http://www.ripoffreport.com/r/GMAC-Insurance/Winston-Salem-North-Carolina-27102-3799/GMAC-Insurance-Central-Elizabeth-City-Charging-without-notice-for-un-used-months-on-pol-148247. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 2Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

Explanation of earned premium

AUTHOR: Lynn - (U.S.A.)

GMAC is not who your complaint should be with. You complaint should fall with the Department of Insurance in North Carolina. They are the ones that determine short rate cancellation penalties. Every insurance company that writes in NC operates the same. If you cancel your policy mid-term then it is cancelled short-rate (basically you are penalized for cancelling a policy mid-term.) Basically, what this means is this: If your 6 month premium is $600--you cannot say that every month it cost you a $100 to insure your vehicle. The first month may actually cost $300 & the last month may only cost you $50.00. This would be very confusing if you had to pay different amts each month, not to mention the first few months would be hard on the wallet. The insurance companies try to help with this by giving you equal installments. The downfall to this is if you cancel during the policy term then you are penalized. Having been an agt I always told new/old customers this b/4 writing a new policy for them or canceling an old policy for them. I would be more upset w/ Progressive for not telling me that switching would cause me to still owe my prior carrier.
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#2 Consumer Suggestion

It's called Earned Premium

AUTHOR: Bill - (U.S.A.)

You're not going to win this one - it's money you owe for time they DID cover you.
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