Security First Insurance Blog     — where your security is our first priority.

Do you know how YOUR insurance company handles refunds?

Unfortunately, the answer to this will vary from company to company. There are no standard answers. For example, some homeowner companies issue a refund to the party that made payment (i.e., mortgage company), others issue to the named insured only, and some (such as Progressive) refund to last method of payment.

The answer usually lies in the last method of payment. Let’s say your payments are automatically withdrawn from your checking account–that’s where the refund will go. This is fantastic if that’s is your account…but suppose it belongs to your ex! Now let’s say you paid your last payment on a bankcard–the refund will be applied to THAT bankcard. Again, this works out swell if that’s your bankcard, but things could become problematic if that’s not your card, or the account has been closed.

Some carriers may change how or where a refund is issued, but it must be addressed at the time of cancellation request. Make certain to talk to your agency representative and ask them to clarify with the carrier. Know how YOUR refund will be handled.

(contributed by Teri)