I decided to switch my auto insurance to GEICO because I heard from a friend that it was so much cheaper. I currently has a policy with Progressive. I had my account set up so that automated payments would come out on a certain day of the month. The money had yet to come out of my account, so as I had done in the past, I decided to get a quote from GEICO, and if it was cheaper, I would cancel my Progressive policy (there are no punitive fees in their paperwork for cancelling a policy early). GEICO was nearly $60 cheaper a month. I signed up with them, and as soon as I got off the phone, I called Progressive to cancel my policy effective immediately. They inform me that they would cancel my policy, but that, even though the funds hadn't cleared, they wouldn't cancel the authorization and that they wouldn't issue a refund of my money for 12 days! How is anyone supposed to switch car insurance without lapsing coverage if it takes nearly two weeks to receive the money that would have been allotted for car insurance. Like many people, I'm on a budget. I can't pay car insurance twice in one month with out it having financial repercussions. When I asked them why it would take so long to issue the refund, they say that it was their "standard policy" but when I asked to see it in writing, they said that it was no where in writing.
Progressive Insurance punishes their customers for taking their business elsewhere with a deceptive practice of not telling customers when they sign up that refunds are subject to a mandatory 12 day hold.
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