Can I do anything about this insurance bill?
I leased a new car at the end of June and the dealership called my insurance company to replace my old car (I only had liability) with my new car (with full coverage) on my policy. I called my insurance agent the next day to make sure everything was done, and they said it was.
On July’s bill, I saw that my amount due was $30 lower than it was before. I knew it was supposed to go up about $40–50, so I called them. They said it wasn’t put on as full coverage to begin with. I thought that was odd because my state requires full coverage on leased vehicles and I thought getting the call from a dealership should’ve been a clue that I needed full coverage. The representative told me it would be corrected the next month and the next bill would reflect the difference in addition to the amount due, so I only paid the incorrect lower amount.
In August, the same thing happened. My husband called this time, and they told him the request for full coverage was put through the previous month, but it hadn’t been processed yet. My husband tried to pay extra so we didn’t get a huge bill the next month, but they said they couldn’t do that. Again, we had to underpay by $70.
In September, the change was made and we were charged $90 extra to cover what we didn’t pay before. I thought that was the end of it. This month, it’s another $95 extra and the bill says this is the second of three bills to reflect the policy change. By my calculations, we only underpaid by about $140, not nearly $300. And why wouldn’t they put it all on one bill?
We’ll be calling them tomorrow to see why they’re charging so much, but I think it’s ridiculous that we have to pay for previous months of coverage when this was their mistake to begin with. They say if I would’ve gotten into an accident during those two months, they would’ve had to cover it. That’s fine, but I didn’t get into an accident and I don’t think getting this new car on my policy should’ve caused such a big problem.
What would you do in this situation? We’re broke and paying an extra $100/month is really hard for us to do.
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10 Answers
First and foremost, are you absolutely clear on what total cost per month full coverage is?
You’re calculating what you think the difference should be – but you and the insurer don’t seem to have the same numbers.
I can definitely understand how, when you thought you were underpaying by only $70, it hurts to be charged $95/mo. extra—above and beyond what you think is the new monthly total…but what I wonder is if you weren’t underpaying by only $70..maybe the full coverage insurance costs about $20/month more than you were guesstimating?
I also agree that the way the insurance company has dropped the ball (with you and your husband having to call repeatedly to correct their mistake in not adjusting the coverage) isn’t acceptable. Personally, that would be enough to make me want to shop for a different insurance company.
When you call tomorrow I’d explain the timeline to the person you speak to, ask for a clear total (what is the total cost per year for this new car, and thus how much is being deducted each month) and then ask if you canceled the policy today (by selecting a new provider) what balance, if any, is considered outstanding? If you don’t like the customer service you’re getting I’d advise them you will be shopping elsewhere to see if another insurer can beat the rate AND provide better service than what you’ve experienced.
@geeky_mama The coverage for his truck is $80. Liability on my old car was also $80, so we were paying $160/month. The incorrect bills I paid were $130, $80 for him and $50 for liability on the new car. The correct new amount is $80 for him and $120 for me, so $200/month total. Last month we paid $290 and this month the bill is $295 with the $95 separate on the bill under “coverage change, second out of three bills reflecting change.”
It’s clear on the bill that the $90 last month and $95 this month is separate from our monthly premium. I will call tomorrow, but I’m worried they’ll convince me this is the correct amount even though I know it shouldn’t be that much. I’m too nice and will just give up.
They’re very nice when I call and we have homeowner’s insurance through them at a discounted rate for multi-line, so I don’t want to switch and lose money.
I just think another company would’ve done away with the discrepancy considering it was their fault.
I really wonder if you had needed to use it if they would have actually paid had you been in an accident. I would almost bet they would’ve said that you were only paying for liability, therefore that is all they will cover.
I think I would ask to speak to a supervisor when you call tomorrow. I wouldn’t even mess with the person that answers the phone and hasn’t been helpful in the past.
You can do this politely without sounding mean. I have found that when I do this, I usually get what I think is the correct amount I should be paying.
I have done this with Dish and my phone company. I also got an additional 10.00 off a month for a year because they had messed up my bill for 3 months in a row.
If the auto dealer specified a level of coverage and the insurance company agreed to it at the time you bought the policy then the insurance company is “bound” to the terms of the policy, The policy began when the policy was accepted.
They would have been obligated to cover any losses at the “new” rate because the policy was in force. The fact that there was a billing error does not release them from the responsibility to cover your losses. By the same token, the billing error does not reduce your liability for premiums for the coverage you requested.
You should receive a policy from the insurer with the coverages, deductibles and any other limits clearly described on a single page, called the declarations, at the front of the policy. The policy should show the date the policy was written (i.e. the day you bought the car), expiration date and give you a detailed explanation of how the premium is calculated. Frankly I am surprised that 90 days after you bought the policy that you have not received a written policy, In North Carolina this would be technical violation of Dept of Insurance regulations that require that a policy be delivered within 30 days of the acceptance of the policy by the carrier.
If the premium is too expensive, get a quotation for a higher deductible and see where that lies. With a higher deductible you pay less premium but have a higher responsibility if you have an accident.
The other question is why are you leasing a new car, assuming you mean a 2013 vehicle, when you state that you are broke?
SRM
@srmorgan The premium isn’t too high when I’m not being charged $100 over the regular monthly payment. I never stated it was.
This question isn’t about my financial choices and, quite frankly, it’s none of your business why I did that. If you must know, I had a job when I bought it and then I got laid off. Now my husband is supporting us both.
I would go over the math with them and make sure they aren’t going back more months than they should. Maybe they recorded the wrong date of purchase or something andnthe computer is spitting out the incorrect fees.
Can you talk to someone (a supervisor) in person? Do they have an office near you?
@Cupcake I called the main number this morning, explained the situation, and she said she’d have to have my agent’s office contact me about it. I’m waiting on that call now. If I can’t get it resolved over the phone, I’ll go up there.
It seems as though I’m being charged exactly double what I should be charged. I’m hoping it’s just a mistake.
@livelaughlove21 Sometimes I think things are just clearer in person. I hope it’s all sorted out soon.
BTW – I can’t imagine an insurance office not charging for the extra cost, even though the delay was their fault. But I also can’t imagine them not allowing you to overpay. Since you obviously did not have a claim during that period, perhaps they would be willing to give you a discount for the back months.
I left my message at 8:15 and hadn’t received a call back by 3:30, so I called them back. They said the girl that normally worked on my account was out of the office but, according to her notes, she contacted billing and the amount is correct. I’m not sure why she contacted billing about it before we even asked about it. I asked for a breakdown of the charges and the woman said the girl that we normally speak to would call me Monday to explain it.
Getting pretty frustrated.
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