Insurance question.

[Slippy]

I'm debating with 2 assholes right now, who think 'cause they have penises that I haven't owned numerous vehicles, and don't know what I'm talking about.

I am unsure if this question can transfer to Yanks....can't goddamn find a Google answer though, to shut them up, so figured I'd ask here.

They are trying to tell me that you don't have to pay first/last on a new insurance policy, for a new vehicle.

I've never carried a policy that didn't insist on first/last, if you are going on a month-to-month basis.

Please tell me if I need to chew some crow here.

[Smell Muhfinger]

what

[LonghornJ]

The guys have more than one penis?

[Neesie]

Any insurance I've ever had has been a one year contract, at least. I don't think you can do month to month here. You can switch whenever you want, but you basically always sign up for and pay for a full year policy...

I know that doesn't help you, but whatever.

[MatthewT]

A large percentage of people do not make a second insurance payment. They get insurance to get their car licensed, then stop paying. Having you pay a half a month (for example) then the next whole month in advance shows up as two months on the books (which allows them to get more money and keep their current re-insurers - which basically insure policies with huge amounts of money in case of a catastrophe and the company has to pay out on everything, having more of that money means they can legally issue more policies... and make more money).

[Mack]

You'd have to ask my bookkeeper.

[MatthewT]

apparently it's a money thing

[flathead]

Never heard of such a thing. Tell them to shove it and find someone else.

[Gomez]

I sue insurance companies for a living and I have no clue what first/last means

[Nantrax]

I'm debating with 2 assholes right now, who think 'cause they have penises that I haven't owned numerous vehicles, and don't know what I'm talking about.

I am unsure if this question can transfer to Yanks....can't goddamn find a Google answer though, to shut them up, so figured I'd ask here.

They are trying to tell me that you don't have to pay first/last on a new insurance policy, for a new vehicle.

I've never carried a policy that didn't insist on first/last, if you are going on a month-to-month basis.

Please tell me if I need to chew some crow here.

I'll ask Mrs. Nantrax about it, if I can actually understand the question and translate it for her.

[Neesie]

A large percentage of people do not make a second insurance payment. They get insurance to get their car licensed, then stop paying. Having you pay a half a month (for example) then the next whole month in advance shows up as two months on the books (which allows them to get more money and keep their current re-insurers - which basically insure policies with huge amounts of money in case of a catastrophe and the company has to pay out on everything, having more of that money means they can legally issue more policies... and make more money).

tl;dr

[MatthewT]

this and the above were from Yahoo Canada by the way


A large percentage of people do not make a second insurance payment. They get insurance to get their car licensed, then stop paying. Having you pay a half a month (for example) then the next whole month in advance shows up as two months on the books (which allows them to get more money and keep their current re-insurers - which basically insure policies with huge amounts of money in case of a catastrophe and the company has to pay out on everything, having more of that money means they can legally issue more policies... and make more money).

[MatthewT]

tl;dr

look, i said i was happily married, and that means i'm happily married, okay?

[Neesie]

I'll ask Mrs. Nantrax about it, if I can actually understand the question and translate it for her.

Now I'm thinking I didn't understand her question, either.

Does she mean that she's making monthly payments for a year's worth of insurance and they're making her pay two months up front?

I'm very confused...

[Slippy]

I'll ask Mrs. Nantrax about it, if I can actually understand the question and translate it for her.

When insuring a new vehicle - with the option of "month to month", instead of 6 months or a year (as Neesie indicated) - is it not standard to HAVE to pay first/last?

ie: let's say your insurance is quoted at $200/month - in order to initiate the policy and get coverage, you MUST pay 2 months. aka: first/last

[MatthewT]

When insuring a new vehicle - with the option of "month to month", instead of 6 months or a year (as Neesie indicated) - is it not standard to HAVE to pay first/last?

ie: let's say your insurance is quoted at $200/month - in order to initiate the policy and get coverage, you MUST pay 2 months. aka: first/last

i have seriously already answered your question

[MatthewT]

I have written billing software for several auto insurance companies (for about 15 years) and have never heard of such a thing as you describe it. What they may be referring to is the rest of the current month pro-rated for the new policy (it is a new policy even if it is the same company), then the beginning of the next month. That way you are always paying them in in advance, like you are now. Basically, you will not be paying at the beginning of next month. Processing bills, printing them, mailing them, etc. costs money they don't want to spend.

Most importantly though is retention (and often times how it looks on the books - in addition to extra certain 2 or 3 weeks of payment they are getting from you). A large percentage of people do not make a second insurance payment. They get insurance to get their car licensed, then stop paying. Having you pay a half a month (for example) then the next whole month in advance shows up as two months on the books (which allows them to get more money and keep their current re-insurers - which basically insure policies with huge amounts of money in case of a catastrophe and the company has to pay out on everything, having more of that money means they can legally issue more policies... and make more money).

They shouldn't be keeping or holding anything. There shouldn't be any money laying around other than what you paid in advance. Most likely, you are simply paying for the rest of the current month, the beginning of the next month, and will not be billed until the month after.

EDIT
You are canceled immediately for non payment, no prior notice required. The only notice required is for rate changes (ie hiking your bill up, or rarely for changing the way they rate) or cancellation (they just don't want you regardless). This may vary in some states, but not any I have done (most).

• Edited 2 years ago
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Asker's Rating: Asker's Comment: Excellent answer, and much detail. Thank you. Checked again, and now they tell me 90% of all insurance companies in Ontario Canada charge first and last...I cannot see that being true.
Have a clean record & never missed a payment. Billion $ company covering itself against little people. Pathetic.

[beatlejews]

i pay my insurance bill at the beginning of the year. one payment. done.

[Slippy]

I already fucking know I'm right............or at least I'm pretty damn certain that I am.

They double-team me though, and ridicule me like I'm an idiot for shit I've been doing and paying for since I was 16 years old.

If I'm wrong..........this is going to sting.

[MatthewT]

no, nees, i will not