Legal Question in Insurance Law in California

Is it legal that an insurance company renews your policy automatically after its expiration without authorization?

My previous car insurance company renewed my policy automatically without my authorization. It was expired on 8/16. They gave a cancellation date, 9/9, if they don't get paid. Since I didn't want to stick with them, I ignored. However, when that date passed I got a bill for the period 8/16 - 9/9. Can they do that? I bought a policy from another company on 8/29. The previous company asks me to provide the new policy document to them for fee adjustment. I don't know if they even have the right to see other companies' documents. Regardless the part I had a gap between 8/16 and 8/29 and I should pay the previous company for that, were they really legal to renew somebody's policy by default and charge the fees? Please help me. I think it may happen to many people so I want to bring it up.


Asked on 9/18/12, 11:47 am

1 Answer from Attorneys

Of course it's legal. It's in the policy. You accept the policy, you accept auto-renewal. It's a contract. Furthermore, I'm pretty sure it's mandatory. The public policy of the state is for everyone to be insured who owns a car. The Dept. of Insurance doesn't want people to go uninsured because they forget to renew. So renewal is automatic unless you cancel. That is why you are billed for 8/16-8/29, because the insurance company was required by regulations to keep you covered for that time period. You had no gap.

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Answered on 9/18/12, 12:04 pm


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