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I added a car one month in to my 6 month car insurance policy and was quoted a new premium of $487 a month. When the payment came due, $588 was taken out of my account. I called the insurance agency and was told that because the policy is a 6 month policy, you only have 5 months to pay for the increased premium. I asked why would I pay insurance for a car I didn't own the previous month? No answer given. I have since dropped the day after they took a second $588 payment. Just received a $222 refund. I feel the is a fraud situation or at the very least an error made by this company. Any thoughts on the legality of what they did?

David B...
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  • Where are you located? United States? If so, what state? I have had a lot of success when dealing with insurance by contacting my state's department of insurance and filing a complaint. Is this one of those insurance companies where you can't go in to a local branch and talk to someone? – mikeazo Sep 20 '16 at 13:59
  • Did you start the policy owning no cars? (I have an abiding interest in such "named non-owner" insurance policies, and have found they are very non automated) – user662852 Sep 21 '16 at 03:15

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Typically auto insurance is issued in six month contracts, but coverage is calculated (and prorated where necessary) by the day. What day exactly that you added the car will matter. "I added a car one month in to my 6 month car insurance policy" isn't descriptive enough to determine anything. Many auto carriers will allow premiums to be paid monthly rather than semi-annually for a, usually, small additional fee. But even if you pay monthly the total premium will be based on that six-month policy.

Without seeing actual numbers and dates or being part of the conversation(s) you had it's pretty hard to determine fraud, I'd chalk this up to a misunderstanding. Auto insurance is highly commoditized and automated (assuming you're in the US) with millions of policies being calculated and issued each day.

quid
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  • I agree, it is unlikely to be fraud. It would seem unlikely to be worth it to an insurance company or an insurance agency to risk a fraud accusation for such a minuscule amount of money. – Anthony McCloskey Sep 21 '16 at 23:56