Question
What should I do if I cancelled my insurance policy but the company drafted money out of my account afterward?
I had a policy with Allstate for just over a year when I decided to shop around for a lower rate. I decided to switch to Geico so I cancelled my old policy before the payment was due. When I checked my bank account I noticed I was charged by Allstate after my policy was supposed to have been cancelled. What should I do?
Answer
While I can't say with a certainty, it sounds like you were set up for EFT (auto-draft) payments with Allstate so you didn't have to worry about calling in or mailing a payment. Unfortunately with EFT options, it may not be possible to stop a scheduled payment draft depending on when the payment is set to be withdrawn. For example: you cancel your policy one day before it is set to come out of your account. Your insurance company may not be able to stop this transaction from taking place. Although this can be a hassle, your previous insurance company is very likely to issue a refund if you make them aware of the incorrect draft from your account. I would recommend contacting them ASAP so they can work to resolve your payment issue.
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