So I just got dicked by my new car insurance company

[beer]

I got into a small accident in July. There was no damage to my car other than a cracked license plate bracket, and the other car had to replace a bumper. No big deal.

Geico increased my rates 30%. I called them, and their underwriting policy doesn't differentiate between any accident over $700 and less than $30,000, so whether I cracked a bumper on a 96 Corolla or totaled a early-200s BMW 3 series, the efffect on my rates would be the same.

So, I canceled the policy because I thought the rate hike was unjustified in its severity. I changed to another insurance company. I went to the company web site, filled out the information in the quote, cited th accident and the approximate damage value, and was given a quote about 10% higher than my initial Geico premium and substantially less than the revised premium. I purchased the policy online.

I receive an email three days later and they are revising my policy up 45% because of the accident that I mentioned initially. Now, I disclosed the accident when I applied for insurance - and I agreed to purchase that policy at that rate that I was quoted, NOT 45% higher! They are closed on Sunday, but what I can do about this?

I am in CA....

 

[KLin]

Cancel and find another insurance carrier. Have you checked out 21st Century Insurance?

 

[MmmSkyscraper]

LOL, screw those hippies.

 

[beer]

I already bought a 6 month policy. The policy is going into effect on 10/27. I bought it on 9/27. I haven't paid anything yet. Can I cancel this policy right now and pay nothing and explain this to them, or do I have to pay all 6 months of this policy?

I haven't received any paperwork from them yet, and none of this is explained on their site. I imagine that it will come early next week, but I am left to asking here in the meantime.

Ironically, this is through the Costco car insurance program, which is through Ameriprise. I had heard that they had very good rates, and they did, but this upsets me. The fact that it is through Costco and not through some no-name operation makes me feel a little better that this will get resolved but does anyone have any advice?

 

[Old Hippie]

LOL, screw those hippies.

I'll remember that.:evil:

 

[Capt Caveman]

If the policy doesn't go into effect til 10/27 and you canceled the other one, how are you currently insured? If the policy hasn't gone into effect, you should be able to cancel without any issues.

 

[George P Burdell]

40% after closing the deal is sleazy and unbecoming of any good business. I would cancel and find another insurer.

 

[beer]

Originally posted by: Capt Caveman
If the policy doesn't go into effect til 10/27 and you canceled the other one, how are you currently insured? If the policy hasn't gone into effect, you should be able to cancel without any issues.

I canceled my prior policy, which billed on 9/26 for the period beginning 10/27. I am insured on that policy until 10/27.

I am NOT stupid to go uninsured in CA

 

[KK]

Find another insurance, but don't cancel until you find another. what ever insurance company you have should refund the unused prorated amount.

 

[MmmSkyscraper]

Originally posted by: Old Hippie

LOL, screw those hippies.

I'll remember that.:evil:

/me adds another hippy to the list

 

[1sikbITCH]

I would file a complaint with your insurance commission. Just writing a letter to them should be be all you have to do.

http://www.insurance.ca.gov/0500-about-us/

And I would also cancel the policy and go elsewhere.

 

[blurredvision]

Originally posted by: beer
I already bought a 6 month policy. The policy is going into effect on 10/27. I bought it on 9/27. I haven't paid anything yet. Can I cancel this policy right now and pay nothing and explain this to them, or do I have to pay all 6 months of this policy?

If they can quote you something, then up the rate 3 days later, I see no reason why you can't turn down their new "offer". I can't imagine there is any way you'd be locked into an agreement once one party has changed the terms.

Of course, that's just common sense talking, there's no telling what companies can get away with these days. Good luck.

 

[EagleKeeper]

The insurance company has the right to verify the info that you provided.

After they check the info, they upgraded the risk.

You may wish to find out why. Something else may be happening that you are not aware of.

 

[ponyo]

Cancel and pay the prorated amount. I don't see the problem.

 

[Greenman]

Whatever you do, DON'T have a lapse in coverage. As soon as that happens they will jack your rates another 30%.

 

[jlee]

Have you tried Progressive? They've had the best rate for me so far..

 

[jagec]

Why don't you call and see if you can get it fixed before you cancel?