AIG auto insurance - I received a letter dated May 6, stating that my policy had lapsed due to non-payment

AIG auto insurance - I received a letter dated May 6, stating that my policy had lapsed due to non-payment

auto insurance / AIG

I have been buying my car insurance from former (GE Colonial Penn), now AIG, for more than 7 years, and I’ve been a very satisfied customer. But recent events have eroded my goodwill. My policy (number 5741503ss) expired last April 30.

As always, they sent me a questionnaire asking for my current odometer mileage, which I promptly returned. A few weeks later, I received an invoice for $840.60 due April 30, 2004. Accordingly, I sent them a payment for the same amount. April 30 was a Friday.

The payment was debited from my bank account on Monday, May 3, 2004. On May 11, I received a letter dated May 6, stating that my policy had lapsed due to non-payment. When I telephoned their consumer service line, I was told by Janet that because the payment was received after 4pm on April 30, I no longer had coverage, which means that I’ve been driving for the past 11 days with no coverage, knowing that the money was cashed.

When I pointed out that I had proof from my bank showing the payment was debited , she told me that I had to shop for insurance elsewhere. She said that there was no supervisor available to talk to me and that there was nothing she could do. When I told her that I had no intention of shopping for insurance elsewhere, she hung up on me. Today I faxed the accounting department with a printout from Valley National Bank to prove that I had indeed paid for my policy.

When I called to verify, I was told by Julie that it could take 24 to 72 hours for faxes to be answered. I had to rent a car today in order to go work and I’ll have to do the same tomorrow. I received no warning that my policy would be cancelled if payment was not received by 4pm. I was treated as if I am no longer welcome as a customer, but given no respect and left out in the open.

I would like to hear from you with an explanation that what was done is the way AIG conducts business. I would really like to know what happened to the friendly service I used to receive from GE Colonial Penn.

Sincerely,

Altair H. M (a very frustrated customer)

Marcia P

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