I wasn’t too into the monthly $5 installment fee so I paid the whole thing up front 3 months ago not knowing AIG’s financial troubles. WHEN AIG goes under, what will happen. Will I be out of car insurance or will whoever that buys the assets honor the rest of my car insurance term?
Can I request money I paid ahead of time back to me from AIG?
February 23, 2010 @ 12:56 pm
I don’t believe AIG is going to go under. Your policy should be secure. You just wouldn’t want to be a stockholder, which you are not.
If you prefer to find another policy, you can cancel the AIG policy and ask for a refund.
February 23, 2010 @ 1:14 pm
I’d worry about it when and IF it were to happen.
February 23, 2010 @ 1:38 pm
Whoever takes over either an entire company or just buys its book of business will honour your policy. It is in their interest to, they want your custom not just this year but next year, the year after etc etc.
It’s a fool who says never and I appreciate your concern, but I wouldn’t be too worried if I was you.
Is it worth cancelling the cover to move elsewhere ?
I doubt it…..
a)you’ll probably get slapped for all sorts of cancellation/admin fees
b)there’s no guarantee that any company you move to will be any ‘safer’ in 6 months time
February 23, 2010 @ 2:36 pm
Why in the world do you think AIG INSURANCE is going under? It’s financially VERY strong, currently rated A XV. Don’t confuse the AIG from the “bailout” with the AIG that writes insurance policies.
But, hypothetically speaking. Let’s say AIG DOES go under. In insurance terms, that means, the company is declared broke by the state insurance department, and goes into receivership. By the way, this process takes about TWO YEARS. The first thing they do, is start nonrenewing policies.
So, the policy isn’t going to renew. Then, if there are any claims during that time, they will be paid by your state insolvency fund.
Auto policies are NOT like life or annuities – they are PURELY on a year to year basis.
And you won’t get any money back, because your COVERAGE is still in effect. If you want money back, cancel your policy TOMORROW, and then you’ll get a refund. But please replace the coverage first!