I was looking to switch car insurance companies after I paid off my car loan. I went to the website of State Farm, got a quote, and paid it using my credit card. Then I received a binder for insurance. I understand that they'll check for everything before they approve my purchase. However, they did issue a policy number, which is very misleading. The next day, I wanted to cancel my purchase since I decided to stay with my current insurance company. There was no way I can cancel it before it's charged to my credit card. I called State Farm based on the numbers provided online and was referred to a local agent. Called the local agent and they didn't have my information since it's still being underwritten. They can't cancel it until they get the information from State Farm. Called my credit card company and a charge has been issued while State Farm still requests more information and indicates the premium might change. What a joke!! Based on my previous experience an insurance company WON'T CHARGE the payment until the premium has been agreed by the purchaser and the company, after the company reviewed and approved the application.
Have to call them again to cancel the policy and my concern now is that they'll charge the prorated policy rate since the purchase - while I'm double paying my current insurance as well. File a charge dispute with my credit card company and will see how things go. A final word: Be award of online policy purchases from State Farm!!