I Don't Owe, I Let It Go
Tom received a bill for insurance in May and decided not to pay it since he was out of work. Now, he has a bill from them for $330. What does he do?
QUESTION: Tom in Dallas is a self-employed software consultant. He carries insurance that costs about $1,700 a year. He received a bill for it in May and decided not to pay it since he was out of work. He didn't call to cancel it. Now, he has a bill from them for $330. What does he do?
ANSWER: I would call and just jump their case. I don't know the legality on that, but I suspect this is a bunch of crap. Here's the deal. You didn't re-up the insurance, and they should have canceled it. You didn't ask for them to re-up it. But you don't have to call and tell them to cancel policies that don't get paid. That's their job.
Call them and be nice at first, but if you can't get anywhere, then tear into somebody until you get to a supervisor who has a brain and tell them that if they think you are paying this or if they want to put it on your credit bureau report, you'll own them and come after them with everything you've got.
Even if it was in the contract, I can't imagine an insurance agency who would allow something like that to legally stand. It's possible that I'm wrong, but it's absurd. I can't imagine your car insurance billing you if you let your coverage lapse.
Insurance companies are scared of the insurance commission in your state. Tell them you'll file a complaint with the state insurance commission. But when you call them, start out nice. There's no sense being a smart aleck until there's a reason to be a smart aleck.