Can Insurance Companies Do This?
Question:
Answer:
You should have to pay today forward, not back to November. It sounds like you have a really inexperienced agent. You may want to try getting a quote online. I am paying less than ½ of what I was before.
Go to: http://www.insureme.com/landing.aspx?ref...
Take care,
Casey
You should only have to pay the increased premium from the date the change was made until the policy renewal date. I don't know who you have for insurance, but you may want to contact your local agent and ask them to go over the changes on your policy. I can not think of a single reason why your insurance company would do this.
They want you to pay for retro coverage?
I certainly wouldn't go for that.
I would change insurance companies to one that doesn't do that.
How reliable do you think a company like that is going to be in the event that you need to file a claim?
Yes, your agent can explain it. Ask him.
Most major companies don't do that.
Most are on a "pro-rata" system, meaning if you make a policy/coverage change. The premium is pro-rated from the date of the change to the next renewal date and you are billed/credited that amount.
If the company you are with is trying to backdate charges, I would suggest finding a different company all together.
sounds like your insurance company is trying to literally screw you over. that don't sound right at all. If you want more coverage today, then you should be able to start today not go back months. That is wrong. I know as I had worked for State Farm Insurance before. I would think about finding a new insurance company. Good luck
I think it's because they sell their policies in blocks of 3 or 6 months. I don't know which company you use.
If you want to switch coverages in the middle of an already established period they may not have a choice but to do that.
This is only a personal opinion based upon previous experience with my own insurance company (State Farm).
Bottom line: They want your business and they have a reasonable explanation as to WHY they're doing it that way. They CAN explain it to you, but it's up to you to agree with the explanation and ultimately if you want to stay with them.
Prior to finding a new insurance company, I would ask them about the same situation to see what they would do. This way, no one catches you by surprise in the future.
Call them back and ask your agent to explain the reasoning behind this. Coverage should be pro-rated from the date the increase goes in to effect. I would let the agent know that you plan on contacting the Department of Insurance to ask them to explain it to you. They will shake in their boots!!!
I represent multiple companies and not one of them will make you pay back to the renewal date for a change. Is there any chance that you spoke with someone who is new in the office and didn't know what they were talking about. I would call back and ask to speak with the office manager. They usually have some experience and can explain what is happening. You should only have to pay from the date of the change thru the renewal date.
Call them back again for a better explanation.
It sounds strange, unless you bought some kind of locked in package I haven't heard of. Any increase in coverage I do for any of my clients is calculated based on the day the coverage changes.
You only pay for the increased coverage from the time of the change thru the end of the policy...it's not back dated to the inception of the policy.
Legit insurance company - I know it sounds weird but I am talking about RELATIVELY legit one - will charge you for additional coverage starting on the day you have requested it.
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