Avoid Insurance Cancellation Gouge

[Andy Shane]

I got a nasty surprise from AVEMCO yesterday: a $150 surcharge for
terminating my insurance before the policy expiration date.

'Turns out, most carriers impose a 10% "Cancellation Fee," according
to my new broker, Travers & Associates.

So, not only was AVEMCO non-competitive, they gave me the parting
shaft. Nonetheless, the surcharge merely erodes the overall savings
I've enjoyed by making the switch: nearly 25% of the annual premium!

Further, I was on the verge of buying a seaplane several months ago,
and after being refused by AVEMCO, Mike Travers of Travers &
Associates (1-800-888-9859 or ) beat the
bushes and located coverage. He has located coverage for my '53
Skywagon with AIG, saved me almost 25% with an AOPA membership.

All indications suggest AVEMCO is going the way of USAA in the
insurance field: a formerly wonderful company whose evolution has
rendered it less than desirable.



Andy Shane

ANDY'S HANGAR http://webpages.charter.net/andyshangar/

[Bill J]

Do you mean the USAA in San Antonio? What's wrong with them?

Andy Shane wrote:
> I got a nasty surprise from AVEMCO yesterday: a $150 surcharge for
> terminating my insurance before the policy expiration date.
>
> 'Turns out, most carriers impose a 10% "Cancellation Fee," according
> to my new broker, Travers & Associates.
>
> So, not only was AVEMCO non-competitive, they gave me the parting
> shaft. Nonetheless, the surcharge merely erodes the overall savings
> I've enjoyed by making the switch: nearly 25% of the annual premium!
>
> Further, I was on the verge of buying a seaplane several months ago,
> and after being refused by AVEMCO, Mike Travers of Travers &
> Associates (1-800-888-9859 or ) beat the
> bushes and located coverage. He has located coverage for my '53
> Skywagon with AIG, saved me almost 25% with an AOPA membership.
>
> All indications suggest AVEMCO is going the way of USAA in the
> insurance field: a formerly wonderful company whose evolution has
> rendered it less than desirable.
>
>
>
> Andy Shane
>
> ANDY'S HANGAR http://webpages.charter.net/andyshangar/
>

[Mike W.]

Nationwide tried that BS on me once. They wanted me to pay the IDENTICAL fee
as the mothly installment amount to cancel. Hmmm, let me get this straight,
if I pay you, you will cancel my policy. Following that logic, they got
exactly $0 from me. What are they going to do if I don't pay them NOT to
insure my car? Corporate America is out of control.


"Andy Shane" > wrote in message
...
> I got a nasty surprise from AVEMCO yesterday: a $150 surcharge for
> terminating my insurance before the policy expiration date.
>
> 'Turns out, most carriers impose a 10% "Cancellation Fee," according
> to my new broker, Travers & Associates.
>
> Andy Shane
>
> ANDY'S HANGAR http://webpages.charter.net/andyshangar/
>

[Gord Beaman]

"Mike W." > wrote:

>Nationwide tried that BS on me once. They wanted me to pay the IDENTICAL fee
>as the mothly installment amount to cancel. Hmmm, let me get this straight,
>if I pay you, you will cancel my policy. Following that logic, they got
>exactly $0 from me. What are they going to do if I don't pay them NOT to
>insure my car? Corporate America is out of control.
>
>
Problem likely is that they probably have deals cooked up with
all insurance companies to deem you an undesirable customer and
now nobody will insure you...sounds illegal to me but who knows.
--

-Gord.
(use gordon in email)

[Jim C]

I've worked in the insurance industry for 33 years and the best thing to do
is get canceled for "non-pay" like stated above, but insurance companies do
NOT talk to each other anymore than Airbus and Boeing do. They're
competitors not only for the product but the employees too, plus it's
against the law in most states. Many small businesses, which I am more
familiar with, just cancel by not paying and move to the next company which
is fine if your credit can handle it. If there is any communication between
companies it is at the CEO level and those guys don't know and often don't
understand, the nuts and bolts. They're stock price and ROI guys. (I hope
my boss isn't listening)
Jim

"Gord Beaman" > wrote in message
...
> "Mike W." > wrote:
>
>>Nationwide tried that BS on me once. They wanted me to pay the IDENTICAL
>>fee
>>as the mothly installment amount to cancel. Hmmm, let me get this
>>straight,
>>if I pay you, you will cancel my policy. Following that logic, they got
>>exactly $0 from me. What are they going to do if I don't pay them NOT to
>>insure my car? Corporate America is out of control.
>>
>>
> Problem likely is that they probably have deals cooked up with
> all insurance companies to deem you an undesirable customer and
> now nobody will insure you...sounds illegal to me but who knows.
> --
>
> -Gord.
> (use gordon in email)

[reader]

"Jim C" > wrote in message
...
> I've worked in the insurance industry for 33 years and the best thing to
> do is get canceled for "non-pay" like stated above, but insurance
> companies do NOT talk to each other anymore than Airbus and Boeing do.


Does the "non-payment" information get reported into the CLUE database that
insurers share? Can you get "black-listed" by one insurance company via the
CLUE database?

[Jim C]

There's no mythical black list but it does preclude anyone from checking
your credit report whether you're buying a car, insurance or taking out a
loan to buy groceries.
Jim

"reader" > wrote in message
. com...
> "Jim C" > wrote in message
> ...
>> I've worked in the insurance industry for 33 years and the best thing to
>> do is get canceled for "non-pay" like stated above, but insurance
>> companies do NOT talk to each other anymore than Airbus and Boeing do.
>
>
> Does the "non-payment" information get reported into the CLUE database
> that insurers share? Can you get "black-listed" by one insurance company
> via the CLUE database?
>

[[email protected]]

What about the question on the application, "Have you ever been
cancelled, declined or refused renewal on an aircraft insurance
policy?". Do you just lie about that? I can see that your 33 years in
the insurance industry has not been on the claims side.

Rich

Jim C wrote:
> I've worked in the insurance industry for 33 years and the best thing
to do
> is get canceled for "non-pay" like stated above, but insurance
companies do
> NOT talk to each other anymore than Airbus and Boeing do. They're
> competitors not only for the product but the employees too, plus it's

> against the law in most states. Many small businesses, which I am
more
> familiar with, just cancel by not paying and move to the next company
which
> is fine if your credit can handle it. If there is any communication
between
> companies it is at the CEO level and those guys don't know and often
don't
> understand, the nuts and bolts. They're stock price and ROI guys. (I
hope
> my boss isn't listening)
> Jim
>
> "Gord Beaman" > wrote in message
> ...
> > "Mike W." > wrote:
> >
> >>Nationwide tried that BS on me once. They wanted me to pay the
IDENTICAL
> >>fee
> >>as the mothly installment amount to cancel. Hmmm, let me get this
> >>straight,
> >>if I pay you, you will cancel my policy. Following that logic, they
got
> >>exactly $0 from me. What are they going to do if I don't pay them
NOT to
> >>insure my car? Corporate America is out of control.
> >>
> >>
> > Problem likely is that they probably have deals cooked up with
> > all insurance companies to deem you an undesirable customer and
> > now nobody will insure you...sounds illegal to me but who knows.
> > --
> >
> > -Gord.
> > (use gordon in email)

[Jim C]

1. That question has nothing to do with claims.
2. Answer the question. Like I said, they'll know when the run a credit
check!!



> wrote in message
oups.com...
> What about the question on the application, "Have you ever been
> cancelled, declined or refused renewal on an aircraft insurance
> policy?". Do you just lie about that? I can see that your 33 years in
> the insurance industry has not been on the claims side.
>
> Rich
>
> Jim C wrote:
>> I've worked in the insurance industry for 33 years and the best thing
> to do
>> is get canceled for "non-pay" like stated above, but insurance
> companies do
>> NOT talk to each other anymore than Airbus and Boeing do. They're
>> competitors not only for the product but the employees too, plus it's
>
>> against the law in most states. Many small businesses, which I am
> more
>> familiar with, just cancel by not paying and move to the next company
> which
>> is fine if your credit can handle it. If there is any communication
> between
>> companies it is at the CEO level and those guys don't know and often
> don't
>> understand, the nuts and bolts. They're stock price and ROI guys. (I
> hope
>> my boss isn't listening)
>> Jim
>>
>> "Gord Beaman" > wrote in message
>> ...
>> > "Mike W." > wrote:
>> >
>> >>Nationwide tried that BS on me once. They wanted me to pay the
> IDENTICAL
>> >>fee
>> >>as the mothly installment amount to cancel. Hmmm, let me get this
>> >>straight,
>> >>if I pay you, you will cancel my policy. Following that logic, they
> got
>> >>exactly $0 from me. What are they going to do if I don't pay them
> NOT to
>> >>insure my car? Corporate America is out of control.
>> >>
>> >>
>> > Problem likely is that they probably have deals cooked up with
>> > all insurance companies to deem you an undesirable customer and
>> > now nobody will insure you...sounds illegal to me but who knows.
>> > --
>> >
>> > -Gord.
>> > (use gordon in email)
>