Anonymous
Anonymous asked in Cars & TransportationInsurance & Registration · 3 weeks ago

Geico cancels policy for non payment? What not ?

I've had geico as my insurance for a while but last year sold my car and I didnt own a car ever since. I drive a rental by lyft program which has it's own insurance and everything. I just received an email about the policy cancellation! 

Can they inform my motor vehicle department and would this affect my license. Like I said I have no car registered under my name so itll be useless to have auto insurance for nothing. Anyway kinda worried itll affect my license, I wasnt sure. Please advice! 

Thank you. 

14 Answers

Relevance
  • Anonymous
    3 weeks ago

    Geico is a N.A. business with offices everywhere. State laws force Geico to conform to that state or province or territory or they do not have a business there.

    Somebody forgot to tell Geico that you do not have a car anymore(that would be YOU)...and you cancelled the insurance.  

    Nothing happens. Does not affect you at all. 

    I always cancel in PERSON...that way they have proof "I" wanted it cancelled...as they take down my DL number as proof as to the person who came in and cancelled it & signed for it.  Many times there is money coming "back to me in the mail" so there is an incentive to do that paperwork.  Possible Moola.

    . Otherwise "Pranksters" could cancel your insurance on you over the telephone.  You would not know and not be covered especially when you needed it for the collision you were just in...which would be a bummer for you.   & Costly if you hit the side of the bus and cause it to explode killing 20 people in a fiery ball of flames.(you see it happen on TV)  That is 30 lawsuits against you.  The injured Survivors always sue...as do the relations of the people who fried and died.

    • Login to reply the answers
  • 3 weeks ago

    Should be fine, but you should always cancel your insurance in writing.

    • Login to reply the answers
  • Anonymous
    3 weeks ago

    Why didn't you cancel the insurance when you sold the car? Yes, GEICO already informed your Department of Motor Vehicles. Now it's up to you to prove that you have insurance. Better make an appointment with your DMV now!

    • Login to reply the answers
  • Anonymous
    3 weeks ago

    What's the concern?  The cancellation of what I think was your personal insurance shouldn't affect your LYFT insurance or you should have mentioned that. 

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • Bort
    Lv 6
    3 weeks ago

    It depends on your location. Geico is only available in the US so that narrows it down...a little. The state you live in might have different laws.

    This is not accurate information since we have no idea what state your in and without knowing that information your question cannot be answered accurately but in general if you don't own a car you don't need and shouldn't have insurance. Therefore it's not going to effect anything.

    You should have notified Geico that you sold the only car you had when you sold it. They would have immediately cancelled the policy at the end of the billing cycle. If you previously only paid yearly or every 6 months maybe that's what's going on; it's the end of the billing cycle and since you didn't notify them that you no longer own a vehicle they're assuming you still have it and sent you a bill that's now past due.

    Call Geico and let them know you no longer have a vehicle. Don't tell them about the Lyft stuff they don't need to know unless for some reason Lyft requires you to also have your own insurance on top of their insurance. If that's the case then you do need to keep your Geico insurance active and to do that all you have to do is pay it. All they want is payment.

    • Login to reply the answers
  • Kaz
    Lv 6
    3 weeks ago

    If you sold your car, you should have surrendered your plates - the DMV gives you a receipt for that.  Submit a copy to Geico and ask them to correct their records.

    In any event, I would call Geico and explain the situation.  They can best tell you what happened and how it can be resolved.  Good luck.

    • ...Show all comments
    • Kaz
      Lv 6
      3 weeks agoReport

      You would of course follow the laws of your state.  In my state you must surrender your plates before you can cancel your insurance.  I should have mentioned in my response - that each state is different.  :)

    • Login to reply the answers
  • 3 weeks ago

    They must cancel and they must inform the motor vehicle department. They cannot avoid it, unless you pay or you cancel. You can't simply stop paying. If you stop paying and do not cancel, then they have to inform the motor vehicle department.

    • Login to reply the answers
  • 3 weeks ago

    Are we talking about the policy you had before you sold the car?  Then I'd guess you didn't tell them to cancel it, but simply failed to make any more payments.  You should have told them that you no longer had a car and didn't want the insurance any more.  That wouldn't have been a problem.  As it is, they think you've defaulted and that is why they've cancelled the insurance, which is never good for your record.  It may or may not affect your license, depending on where you are.

  • 3 weeks ago

    It's not just Geico, any insurance company will cancel a policy for non-payment.  When you sold your vehicle and didn't get another one, all you needed to do was fill out a cancellation form.

    It might affect your licence status, depending on where you live (which you didn't say).  Some jurisdictions have mandatory cancellation reporting, some don't.

    It might also affect your ability to get insurance (or maybe the price) in the future, but it shouldn't affect you that much.  Non-payment cancellations can happen to anyone, even insurance brokers, and they're not a huge deal if you only have one.

    Check with the DMV where you live (or whatever the DMV is called where you live), and tell them you'd like to verify your status as a licensed driver.  They'll tell you.  No you can't do it online, not even by phone.  This information is highly confidential, so go there in person and wait in line.

    • Login to reply the answers
  • Anonymous
    3 weeks ago

    They may have found out about Lyft. Its not as cut and dried as many people think and it massively increases risks for insurance companies. Price commercial insurance and you will see.

    It wont affect your license right away but it might affect your registration and if you owe on the car they can tell the lender who will demand you get it quickly.

    • Login to reply the answers
Still have questions? Get your answers by asking now.