Strange auto-pay incident

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AQ
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Joined: Mon Feb 25, 2008 11:38 pm

Strange auto-pay incident

Post by AQ »

My car insurance always automatically charged annual premiums to one of my credit cards. But something strange happened this year.

My car insurance statement said the charge was made and the balance is zero now. But my credit card statement didn't show the charge at all and I checked the credit card activity (daily updated) and it wasn't there (so it ruled out any possible time delay.

My main concern and question is: is my car insurance in effect? I plan to call credit card but what if they tell me no such charge?
livesoft
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Re: Strange auto-pay incident

Post by livesoft »

AQ wrote: Tue Sep 14, 2021 2:56 pmI plan to call credit card but what if they tell me no such charge?
Call your car insurance company next perhaps?
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Ddd7651
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Re: Strange auto-pay incident

Post by Ddd7651 »

When did this happen and what is the timeframe? Routine charges that show pending on my CC statement disappear for 2-3 days at a time with no trace until they then show up as processed. Typically things are either pending or processed, but not nowadays. If it has been more than 3 days my experience does not apply.
123
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Re: Strange auto-pay incident

Post by 123 »

I'm speculating but I always get insurance billings 30 - 60 days in advance for semi-annual and annual billing cycles. If you only got one billing notice and it said that the bill was paid perhaps it meant that the billing was prospectively paid because there was a credit card on file. Generally auto-payment would happen on the policy renewal date. If the renewal date was beyond the date of the billing notice perhaps it wasn't time yet for the billing to occur so looking at the credit card side would correctly show no payment.

(We have an elderly relative on Medicare Advantage and the monthly billing statements sent always show zero due because the Medicare Advantage premium is deducted from the relative's SSA payment.)
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Trader Joe
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Re: Strange auto-pay incident

Post by Trader Joe »

AQ wrote: Tue Sep 14, 2021 2:56 pm My car insurance always automatically charged annual premiums to one of my credit cards. But something strange happened this year.

My car insurance statement said the charge was made and the balance is zero now. But my credit card statement didn't show the charge at all and I checked the credit card activity (daily updated) and it wasn't there (so it ruled out any possible time delay.

My main concern and question is: is my car insurance in effect? I plan to call credit card but what if they tell me no such charge?
When you called your insurance company what did they say?
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Stinky
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Re: Strange auto-pay incident

Post by Stinky »

Can you check the website of your car insurance company to see if it shows that the premium has been applied?
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criticalmass
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Re: Strange auto-pay incident

Post by criticalmass »

AQ wrote: Tue Sep 14, 2021 2:56 pm My car insurance always automatically charged annual premiums to one of my credit cards. But something strange happened this year.

My car insurance statement said the charge was made and the balance is zero now. But my credit card statement didn't show the charge at all and I checked the credit card activity (daily updated) and it wasn't there (so it ruled out any possible time delay.

My main concern and question is: is my car insurance in effect? I plan to call credit card but what if they tell me no such charge?
Did this happen last week? Last month? Early 2021? If you made the charge recently, there may be gap when charges neither
show as pending or final, so nothing appears. Then in a day or two, boom, there it is again after it posts on the bank's computer.

If you made the charge (autopay) a long time ago, then something funny happened. In my experience when a company undercharges you, they figure it out real fast and fix it or send a bill. If they overcharge you, they may never figure it out.
Topic Author
AQ
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Re: Strange auto-pay incident

Post by AQ »

This is OP. Let me add some details on the timeline:

1. August 1st. the insurance company sent me a statement which says they'll charge me the premium to my credit card on file for policy renewal on August 15th.

2. September 8th I received my credit card monthly statement. To my surprise I didn't find the insurance premium charge. The statement does include other activities before and after August 15th, the date the insurance would make the charge. I looked up online for all recent credit card activities and still failed to find the charge.

3. Then I looked up my account with the car insurance company online, which indicated my balance is zero now, i.e. my insurance premium has been fully paid.

My understanding is that whenever a party charges a credit card, it immediately receives the fund from credit card (otherwise the charge would be denied). So no reason for me to believe the insurance company hasn't got its fund yet. Is this correct assumption?
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anon_investor
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Re: Strange auto-pay incident

Post by anon_investor »

AQ wrote: Tue Sep 14, 2021 11:40 pm This is OP. Let me add some details on the timeline:

1. August 1st. the insurance company sent me a statement which says they'll charge me the premium to my credit card on file for policy renewal on August 15th.

2. September 8th I received my credit card monthly statement. To my surprise I didn't find the insurance premium charge. The statement does include other activities before and after August 15th, the date the insurance would make the charge. I looked up online for all recent credit card activities and still failed to find the charge.

3. Then I looked up my account with the car insurance company online, which indicated my balance is zero now, i.e. my insurance premium has been fully paid.

My understanding is that whenever a party charges a credit card, it immediately receives the fund from credit card (otherwise the charge would be denied). So no reason for me to believe the insurance company hasn't got its fund yet. Is this correct assumption?
Definitely call the insurance company.
doobiedoo
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Re: Strange auto-pay incident

Post by doobiedoo »

AQ wrote: Tue Sep 14, 2021 11:40 pm This is OP. Let me add some details on the timeline:

1. August 1st. the insurance company sent me a statement which says they'll charge me the premium to my credit card on file for policy renewal on August 15th.

2. September 8th I received my credit card monthly statement. To my surprise I didn't find the insurance premium charge. The statement does include other activities before and after August 15th, the date the insurance would make the charge. I looked up online for all recent credit card activities and still failed to find the charge.

3. Then I looked up my account with the car insurance company online, which indicated my balance is zero now, i.e. my insurance premium has been fully paid.

My understanding is that whenever a party charges a credit card, it immediately receives the fund from credit card (otherwise the charge would be denied). So no reason for me to believe the insurance company hasn't got its fund yet. Is this correct assumption?
Sounds the charge went on a different credit card -- maybe not yours.
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Stinky
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Re: Strange auto-pay incident

Post by Stinky »

Since the insurance company website shows that your account is fully paid, your insurance should be in force. So no need to panic.

However, I would still call the insurance company to make them aware of the situation.
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ResearchMed
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Re: Strange auto-pay incident

Post by ResearchMed »

AQ wrote: Tue Sep 14, 2021 11:40 pm This is OP. Let me add some details on the timeline:

1. August 1st. the insurance company sent me a statement which says they'll charge me the premium to my credit card on file for policy renewal on August 15th.

2. September 8th I received my credit card monthly statement. To my surprise I didn't find the insurance premium charge. The statement does include other activities before and after August 15th, the date the insurance would make the charge. I looked up online for all recent credit card activities and still failed to find the charge.

3. Then I looked up my account with the car insurance company online, which indicated my balance is zero now, i.e. my insurance premium has been fully paid.

My understanding is that whenever a party charges a credit card, it immediately receives the fund from credit card (otherwise the charge would be denied). So no reason for me to believe the insurance company hasn't got its fund yet. Is this correct assumption?
Because it's already a month later, and that payment may end up "overdue" if the error (assuming some error?) is found, I'd PRINT (make a pdf copy) and save a copy of that. Hopefully, that will allow you time to rectify the situation should there be a claim that they try to deny, or a non-renewal, etc.

What is the status of this month's payment?

RM
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Topic Author
AQ
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Joined: Mon Feb 25, 2008 11:38 pm

Re: Strange auto-pay incident

Post by AQ »

Update by OP: My adult kid voluntarily paid the bill without letting me know :happy The mystery resolved. Thanks to all for the discussion.
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