"Why did I get a cancellation notice? I paid on time!"

Sometimes I get calls from customers that get a cancellation notice, when they don't think they should have. There are several reasons this might occur, and any of the situations listed below will result in a cancellation notice, and a rescind of the cancellation notice with no late fee:

  1. The premium payment was made online via electronic funds transfer. While sometimes this IS reflected right away on the insurance carriers records, sometimes it takes up to 72 hours to show up. This is stated on the website at the time you make the payment, so you should be aware of it. This payment will eventually be credited the date it was actually paid.
  2. The premium payment was made after the "shut off" time that the insurance company processes it's payments and the company does not recognize it got the payment until the next day (payment will still be credited the date it was actually paid).
  3. You mailed your payment by the postmarked due date and the insurance company has not yet received the payment.
  4. Also, remember that if you drop your payment off after hours or over the weekend, it will not get posted until the next working day. This will not create a situation where the late fee will be waived. The agent must physically receive the payment in his or her hands to pay it on time. In these situations it is better to pay online, as it would be credited at the time you log on and pay rather than waiting for the next business day.

Bottom line is that if the payment is not recognized by the insurance company prior to their "shut off" time the cancellation notice is automatically generated by their system. Even if they acknowledge the payment the next day with an effective date of the actual due date, it will be too late to stop the cancellation notice from being mailed. They are electronic, computer generated. So, if you get a cancellation notice, and your situation fits one of the scenarios listed above, you are OK. Give us a call if you are concerned, or to verify the status of the late fee. 503-489-3143 or This email address is being protected from spambots. You need JavaScript enabled to view it.