Can an auto insurance company double your rate within 24 hours after they quoted you and made you pay?

Can an auto insurance company double your rate within 24 hours after they quoted you and made you pay?

I got a quote from Progressive. They looked into my record and it went up a few hundred bucks, I was alright with that so I signed up. I even called to make sure everything was good and I was able to cancel my insurance with my previous auto insurance company. Within a day after processing, they doubled my rate.. and then some.. It basically went from $600 to $1,450.. Are they allowed to do that?

rcdrury

They underwrote the policy and the rate was significantly more than the original quote. In reality, they didn't increase your rate- they informed you of the rate once it was determined. The reason for the disparity is that they uncovered a driving history or other risk factors that were much worse than the information they originally obtained from you. They didn't "double" your rate- because of the lack of complete or accurate information originally given them, they gave you a quote that was too low, then they corrected it.

mbrcatz

Absolutely. When you get that first quote, you'll notice that they told you - or the fine print said - your information is subject to verification, and the rates can change, based on the consumer information that we verify.Your quote is only as "valid" as the information you gave progressive, to begin with. If you "forgot" to tell them about tickets or accidents you had, well, that huge increase will help jog your memory! But they should tell you EXACTLY what information changed.

George

Short answer is yes. They have a 60 day underwriting period to make changes to your policy based on incorrect or fraudulent information. I would start by calling your agent and trying to get an explanation. Also, you would be wise to call your prior carrier and make sure they don’t cancel your insurance asap. Tell them to hold off and that the new company may not work out. It shouldn’t be to late to stop them from completing the cancellation process. If the new agent can’t fix it don’t switch. This happens often when people buy online, however it is far less common with a live experienced representative. I would be a little leery of this new agent.Good luck!

redhed

George makes an excellent point that they have 60 days to change the rate IF there was incorrect or fraudulent information. If there was not, and I don't believe there was, make them tell you in writing precisely what incorrect or fraudelent information they found to warrent the increase. You may also want to check with the insurance commissioner in your state as to whether this is legal and what your rights and obligations are.If this quote was in writing it is most likely illegal for them to change it. However, if it was only a verbal then you may not have recourse UNLESS they taped the telephone conversation. Then you can dispute the increase in the rate. You may want to call them and when you get someone just ask if the conversation is being recorded. If they tell you they record all telephone phone calls then you can demand they play your conversation with them. It hasn't been that long so they should still have it.This happened with my sister once. She paid her mortgage over the phone. Well the payment wouldn't go through so they tried to charge her fees. However when they listened to the tape it was clear that she had given the correct bank account number and it was repeated back to her correctly, however it was entered into the computer incorrectly which is why the payment was denied. Therefore they were not able to charge her fees because it was their error.In future if you are calling and getting a verbal quote make sure you get it in writing before you agree and/or have someone monitor the conversation and/or make sure they are taping the conversation. You can't always tell because some companies tape all conversations but as they tell you up front you never hear any beeping. Don't assume the conversation was not taped just because you didn't hear beeps.Good luck with getting it resolved. You can report them to the better business bureau and/or you can give them a negative rating on yelp if you are unhappy with the situation. If they won't help you perhaps you can go back to your old insurance company.Source(s):Been teaching medical billing and coding for six years. Teach students the basics about personal injury and auto insurance. betterbusinessbureau and www.yelp.com

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