Insurance Policy Rate Changed After Signing Up, Agent Admits Fault...

[randomness]

What is the name of your state (only U.S. law)? Florida

Hi all,

I'm trying to find out what my rights are in regards to a problem I am having with a rate increase in my auto insurance.

Here is the background:
-I went shopping for auto insurance in early December. Spoke w/ an agent for one of the big insurers, and got a quote I liked. I gave her all of the information she requested.
-I paid in full before the start of the policy (1st of January).
-In mid February (well after I paid and the policy went into effect), I got a letter from the insurer, that my file went through underwriting, and there was going to be a rate change due to updated information (more on that in a second). The rate change was retroactive to the start of the policy.
-I called my agent to find out what happened. Well, I was with my previous insurance company for 4 1/2 years, and my new insurance company gives a discount for being with the company you are transferring from for 5 years. She quoted me based upon 5 years. She has admitted this is her mistake.
-So, so I have a bill for an additional $280, and even if I transfer out right now, I am still on the hook for the difference.

If this had been my fault, I would have accepted it, and paid the difference. However, considering the agent already admitted it was her fault, I feel I should not owe anything.

What rights/options do I have?

Thanks in advance!

 

[swalsh411]

Ask the agent to split the difference.

 

[Dave1952]

Ok, what do you want to do? You know your insurer wants $280 more than you were quoted (and paid). How does the new rate compare with the other rates you researched in Dec.? Does your insurance contract allow the insurer to change rates retroactively?

 

[randomness]

Ok, what do you want to do? You know your insurer wants $280 more than you were quoted (and paid). How does the new rate compare with the other rates you researched in Dec.? Does your insurance contract allow the insurer to change rates retroactively?

Ideally, I want to keep the insurance I have, at the rate I was quoted. I do not hold out hope that this will happen though.

The new rate is way higher than I originally my renewal rate with my original insurer (about $200 higher), and I also lost my accident forgivness that I had because I was with them over 4 years.

I called corporate, and according to them, yes it is in the fine print that if something comes in after signup they can make adjustments to the policy.

 

[ecmst12]

There is a 60 day "free look" period. During that time, the insurance company can make changes, and you can cancel for a full refund. If you don't like the new rate, cancel and find another company with better rates (and a less clueless agent).

 

[randomness]

There is a 60 day "free look" period. During that time, the insurance company can make changes, and you can cancel for a full refund. If you don't like the new rate, cancel and find another company with better rates (and a less clueless agent).

So I like how this sounds. I just went on my new insurers website and tried to find some details (I seached for "free look"), but couldn't find anything.

Anymore details on how this works, or what I should say when I call them?

 

[ecmst12]

Tell them you want to cancel back to the policy's inception.

 

[randomness]

Tell them you want to cancel back to the policy's inception.

I'm going to try this. I want to ask one question first. Since I've had the policy over 30 days, will this give me some type of weird note on my record saying I was uninsured for over 30 days at one point?

 

[randomness]

Tell them you want to cancel back to the policy's inception.

I'm on with a customer service agent. He is saying the best that they can do is cancel the policy as of today, and I would get back any of my unused payment, minus the prorated amount for the additional amount they were going to charge.

Any way around this?

 

[ecmst12]

As far as I know, you should be able to cancel from the beginning. It should be there in the fine print right where it says the insurance company can change the rate up to 60 days.