Auto Insurance: Adding another car to the existing policy (GEICO)

Question

I've been with Geico for many years. Recently I decided to purchase second brand new vehicle for my family from Ford in South FL. While discussing with financial manager on all my possible options, I made up my mind to pay off the car completely at the time of purchase. So after finding my perfect choice (trim and color) I was provided with the vehicle's VIN to add to my existing policy. In around several hours, still being at the dealership, while my daughter was checking the car around, really tiny scratch was found on the side of the passenger rear door.

The manager apologized and said that they currently don't have the same trim and color car on lot, but they can order it from factory which will take around several weeks for the car to arrive. Being sad that I didn't get the vehicle I want and being happy that money were still with me, I remove the car from insurance policy using GEICO mobile app. My question is: do insurance companies still have a right to charge the total premium even though the vehicle was on the policy for less then 2 hours? I'm sort of confused now and don't know if I should be calling GEICO customer support to ask for my money back.

Answer 1

They'll refund your money (though maybe with a small service charge). I'm sure they regularly deal with new car sales gone wrong.

Answer 2

tl;dr: Call them. I'd be very surprised if you have a problem.

I used to have have a policy with Geico, and would pay for my car insurance 6 months at a time. About 2 months into my last period, I purchased a house. Unfortunately, Geico didn't offer homeowners insurance in my state, so I ended switching to another company that offered a better auto+home combined policy.

Since I had already paid for 6 months of coverage, I figured I'd just be stuck being double-covered for 4 months. So, I didn't bother doing anything until the end of the 6 months and called them to cancel the auto-renewal thinking what I've already paid was a sunk cost. The asked me why I was canceling and I explained the situation and they backdated the cancellation to when I got my policy with the other company and Geico issued me a refund for the time there was overlap.

Considering that they did that for a leaving customer, I'd expect them to be able to cancel the policy on a new car of a current paying customer with no issues.

Answer 3

When adding a new or used car to the policy I have found that it is best to call the company in advance. I let them know I will be adding a car to the policy in the next few days, but I have no idea of the VIN or other info.

I have a policy with a different company and they have told me that I am automatically covered as long as I provide the VIN and other details within 30 days.

The next business day after the purchase I provide everything they need, and a new bill is generated.

When removing a car from the policy it has worked the same way, a new bill is generated when removing the car. Depending on the timing and amounts they have either credited my account or sent a check.

They should have no problem removing a car that was accidentally on the policy. It might be that they charge you a days coverage. When you call them about the refund, ask if the coverage for an additional vehicle is automatic, that way you don't have to provide the info until after you get the car home.