Why does my old insurance company need a proof of insurance?

[diamond20]

What is the name of your state (only U.S. law)? PA

My husband got into 3 accidents withing the past 2 years and our insurance company refused us coverage and we are supposed to find new insurance company withing next 3 months. We found another company and got insurance with them as of today. So now we called to cancel our previous insurance and they say they cannot cancel without a proof of our new insurance.

Is that normal? Why do they need a proof of insurance?

We have homeowners policy with them and insurance on two cars, one of them is still in repayment and another one is paid off.

 

[ecmst12]

Well for one thing, so they won't have to notify the state DMV that you cancelled your policy and are now (to their knowledge) uninsured...which would cause you a hassle!

 

[tammy8]

I do it to CMA and also cover yours too. I am about to allow anyone out here to drive uninsured.

Let me tell you, being in insurance, I have heard and seen it all and without legal proof, I believe nothing!

 

[Country Living]

I do it to CMA and also cover yours too. I am about to allow anyone out here to drive uninsured.

Don't you just hate it when you leave out a word?

 

[tammy8]

Don't you just hate it when you leave out a word?

*snort*

I am NOT about to allow anyone out here to drive uninsured.

 

[Banned_Princess]

I'm just going to throw my 2 cents in and say... Yes it is legal, and common, that in order to cancel a auto policy, you must provide proof of replacement coverage.

Or you can cancel it due to non pay, and when it goes into collections provide proof to them as to when you got replacement coverage...

Can't just go around canceling coverages so people can easily drive uninsured.