Auto Insurance Claims: Loan Payoff Insurance Billing, auto insurance company, collision coverages

Question
Hi Richard,
Our two car loans were paid off over 4 years ago but my auto insurance company I've been with for ten years has been billing us $25 per months ever since.  When I asked them, they said "oh, well they (Credit Union) never told us".  Do I have any recourse?  That's over $10K and we sure could use it!

Thanks for your knowledge!

Answer
Hi Gregory,

Your question is somewhat confusing.

I'm not sure what the $25.00 per month charge was for. However,$24.00 per month for 4 years is only $1,200.00 not $10,000.00. Further, when your vehice is paid off, it is your responsibility to inform your insurance company. The finance company does not do that. Also just because the car is paid off does not mean that you should drop the comprehensive and collision coverages. If you would not have the ability to write a check to repair or replace the vehicle in the event of an accident, you should keep the coverage.

If you still have more questions, please respond with them but be as specific as you can.

I hope this helps
Richard Hixenbaugh