When changing auto insurance companies, am I bound by law to show the new policy to the old insurance company?

Say, today is 1st Feb'07. I had an auto policy (from Farmers) that expired on 1st Jan'07. Today, I buy a new policy from a different insurance company(AAA).

When I discontinue service with Farmers, am I bound to show the new insurance policy to them? Also, will I get charged for the period from 1st Jan'07 to 31st Jan'07 by Farmers?
Additional Details
Say, today is 1st Feb'07. I had an auto policy (from Farmers) that expired on 1st Jan'07. Today, I buy a new policy from a different insurance company(AAA).

When I discontinue service with Farmers, am I bound to show the new insurance policy to them? Also, will I get charged for the period from 1st Jan'07 to 31st Jan'07 by Farmers?

Editing after reading replies.
This is for the state of California.
Yes, I did not renew the policy because the rates were high and it took me a months time to find a new cheaper provider(AAA) and so I am changing the provider now (after a little over a month).

Here's the deal:

If you were to have asked Farmer's to cancel as of a previous date -and had NO replacement coverage as of that requested cancel date, then Farmers would have been allowed to charge you up until the date you actually requested cancelation. If you had already paid the premium in advance, you'd get a refund of everything but the 30 days during which there was no replacement coverage. If you has paid NOTHING yet to Farmers, you'd get a bill for the 30 days.

Example: On Feb 1, you tell Farmers to cancel you as of Jan 1 -a backdated cancelation. But, you had no replacement coverage as of Jan 1. Farmers then cancels Feb 1, and charges you for the 30 days in between (or refunds for all but those 30 days, if you had paid them in advance).

Why is this? Because if you had a claim during those 30 days, Farmer's would have been on the hook to pay it. And if it were a big liability claim, you'd want them to pay it. Furthermore, a claim for an occurrence during that 30 days could come in several months later -a classic whiplash claim, for example.

Now, if you DID have replacement coverage in force as of the requested cancelation date, Farmers will want to see proof of it. You needn't show then the actual policy; a copy of the front (declarations) page is enough, or else a copy of an "Evidence of insurance card" will do the trick. You might also be required to sign a statement saying that to the best of your knowledge there are no claims nor any circumstances that might lead to a claim during the 30 days. Give 'em that and they know there WAS other insurance as of the date you want to cancel -even if that date is in the past. You'd get your premium back, or, if there was no premium paid (and no prior balances anywhere), you'd be billed nothing.

So, chances are you'll be charged up until the date you asked for cancelation, because you can't show you had other coverage for the 30 days PRIOR to that; this is a good thing: now you're out of hot water with the DMV.

The reason for this is that the state is very interested in coverage "being there" in case of an accident; therefore, insurance is REQUIRED. Likewise, if you cancel for any reason, you are required to have replacement coverage so the insurance is continuous. Understandably, the last thing Farmers (or any carrier) wants is to be on the hook for a claim during a period of time when they weren't getting their premium. Thus, they won't let go of the policy until they see evidence that something else was actually there. If they don't have that, the state will stick THEM with your claim.

The policy is based on a simple promise: "If you'll pay us a premium, will pay or defend your covered losses that are reported to us." Unquestionably, had there been a claim during the 30 days after you WANTED cancelation, Farmers would have had to pay. Likewise, they're entitled to the premium for that period of time. The only exception is when there is other coverage in force, and, quite understandably, Farmers wants proof of that.

If you do have 30 empty days, the state might discover it. It takes awhile, sometimes, but eventaully the DMV computers will see the gap, and you'll be asked to show THEM evidence of coverage. If you can't ptovide it, penalties and fines will vary according to the state you're in: typically, you'll pay a fine plus what the premium would have been had you been covered through the state auto insurance fund -by whatever name it goes. Not all states check every record -some do every tenth, or observe another formula. Good luck with this.

OK?

I am going to make an assumption and please disregard the following statements if I am wrong. I would assume that you did not pay the renewal for your Farmers policy and went without coverage for a month before you placed coverage with AAA. I also assume that Farmers is now charging you for coverage that was in place from 1-1-07 to 1-31-07 or perhaps even longer.

Farmers is like a number of Personal Auto carriers in the fact that they have "Automatic Renewals". This means that they automatically bill you for the renewal on your policy. The problem is that if coverage was actually in place with Farmers (i.e. you did not tell them to cancel it) you can be charged for the month of January.

You are not required by law to show them your new policy, however, they are not required by law to credit premium that they are owed by you if you do not.

I hope this helps! Good luck!

Sounds like you're trying to weasel out of Jan. premium.

Insurance is always paid for in advance; companies like Farmers usually collect about 45 days worth of premium to start then put you on a 30 billing cycle with the 'extra'15 days used for reminder notices and billing time.
SO your policy period with Farmers from 1 Jan. to 31 Jan should have already been billed prior to 1 Jan. If a policy period ended 1 Jan. and you did not call and cancel effective 1 Jan. then they would assume you're renewing the policy and bill you for ongoing coverage; otherwise they would have canceled you on 1 Jan for non-payment. So yes they will expect you to pay for 1 Jan to 31 Jan.
If you want to call off the dogs so to speak, you'll need to demonstrate to them you had other insurance in effect, then they'll cancel your policy effective 1 Jan. and never darken your door again. Otherwise, they could assume you're a deadbeat and owe them money and expect payment.

No suppose you had an accident on 15 Jan. and wanted coverage, would you be arguing about the January premium? If you didn't mean to pay it, why didn't you call and cancel? .
This is internal to the insurance companies and how they typically do business, but to answer your other question NO you are not "bound by law" to show proof of other coverage, only if you want to get out of paying Jan premium.

No you don't have to show them the policy.

If you had coverage the right thing is to pay them the money.. even though you have 30 day lee way before you pay the premium or they cancel.

No, you don't have to show Farmer's your new insurance policy. Once your policy expires with them that's the end of your business dealing with them. If you do not have a contract with Farmer's for that time period, then you owe them nothing.

You may want to give USAA a call and check their rates. I switched from GEICO to USAA and saved $400 per year.

laws change depending on your state. in N.Y you're required to fill out an intent-to-cancel form and the old ins co. is required to pay back a pro-rated amount, but it won't be exact. (ex if you had a 6 month policy they don't have to pay back 1/6th, just what they think is fair.)

Liston to jail house lawyers or go to ink.in/55

No, you don't have to show it to them. But if you don't, they can either surcharge you for not having proof of prior coverage, or flat out cancel you, for not having proof of prior coverage.

No, you will not get charged for the month of January - you were UNINSURED for that time. Which could lead to trouble with your tags at your state DMV.

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