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Question
My son's auto insurance company called him today and told him that they forgot to bill him for part of last year's auto policy. The total amount that they failed to bill for was $3,500. They want him to pay it this year and add it to his new premium. It's an unfortunate expensive mistake made by the insurance company and I was wondering if my son is responsible to pay for it? Any suggestions? If he doesn't pay it, cancels his policy and goes elsewhere for insurance, what would be the consequences?
Hi Carla,
To the best of my knowledge, an insurance company only has 30 or 60 days after you purchase a policy to accept or deny your application, change the premium or make any other changes based on underwriting guidelines. I have never heard of a company making a $3,500.00 mistake and trying to collect it a year later.
I would suggest that you contact your state insurance commissioners office to see if they are even allowed to do this. If they are I would suggest finding a new insurance company.
I hope this helps
Richard Hixenbaugh
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | We thought the same thing, that trying to collect on last year's premium just didn't seem right. Thank you so much for your expert opinion. At least my son will know where to go from here. I sincerely appreciate you taking time to answer our question and give us helpful advice. | ||
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Answers by Expert:
Richard Hixenbaugh
Expertise
Auto insurance claims procedure, auto coverage, liability issues, auto damage questions, how to deal with the insurance company, loss of use and diminished value.
Experience
I have been involved in the insurance industry for over 25 years. I have experience in underwriting, sales, claims adjusting, auto damage estimating, auto value appraising and diminished value appraising. I have testified as an expert witness over 35 times.
Organizations
Society of Certified Auto Appraisers
Education/Credentials
Completed all required courses for the Florida Property-Casualty agents license and the Florida claims adjusters license. I have attended various courses on auto damage estmating, vehicle appraising and am ASE certified in collision damage analysis.
Past/Present Clients
My company has done work for consumers nationwide.
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