Being Forced to Pay an 'additional Fee' - Advice Needed

[Maruchino]

I am new to the US (my company moved me here in August).

In early September I signed a lease for a new car. At the same time I took out an insurance policy with a reputable brand with a local agent.

I signed the paperwork and provided all the correct information.

Being new to the US, my UK record is not taken into account, so my policy was approximately $850/6 months - I paid this upfront.

I received a letter 2 months later saying that I owed a 'miscellaneous change' for an additional $314, even though I had not made a change to the policy.

I questioned it via email. My agent has informed me that he had incorrectly assumed that a discount he applied at the time of purchase was actually only valid for military members (I am not in the military and not eligible for this discount).


Can anyone give me their 2 cents on where I stand with this? Am I forced to pay do you think?

Any help would be much appreciated.

 

[xrac]

Your agent quoted you the wrong premium due to the discount mistake and you will have to pay the additional amount.

 

[best14rates]

If the agent misquoted you and put that in writing that they gave you a discount that didn't apply I would ask them why they applied it in the 1st place? Did they do this just so you would buy the policy, knowing the rate would increase after the fact? Have you talked to the carrier direct and explained to them that your agent wrote you and told you they applied the wrong discount and was it intentional or not. If it was intentional then there is an issue. Sometimes carriers will work with you it never hurts to try. You have several options from that point but it really comes down to did they intentionally misquote you or not.

 

[blue_wynd]

You know some insurance companies will take overseas driving history. If you can get a copy of your record in UK, it can help lower the premium. On the subject matter, if it is a honest mistake, nothing much you can do. If you feel it is intentional, than you can change the agent or change the company or file a complaint. In the mean time I would ask some local independent agents for standard carriers that will take your UK record.

Sent from my Smartphone using Insurance Forums

 

[Mike Haskins]

You may be able to get the carrier to pro rata cancel the policy based on the original quoted premium. But that doesn't solve your insurance need. You are most likely being surcharged for not having a verifiable driving record or not licensed in the US or Canada.

Regardless, you will face the same issue if you switch carriers/agents.

 

[USF3983]

You may be able to get the carrier to pro rata cancel the policy based on the original quoted premium. But that doesn't solve your insurance need. You are most likely being surcharged for not having a verifiable driving record or not licensed in the US or Canada.

Regardless, you will face the same issue if you switch carriers/agents.

I agree with this. You'll just want to see if the carrier's policy is to not charge you any sort of cancel fee or 'short rate' if you cancel the policy as the cancellation is dependent upon an agent error.

 

[Prouddad]

Of course, the question is now, how does your revised rate compare to rates from other reputable carriers that offer similar coverage? I imagine that you bought your current coverage assuming that it costs $314 less than it ended up costing you. Did the same agent quote you rates from other carriers with the same erroneous assumption or did you get quotes from other parties?

 

[BlockO]

Something certainly doesn't sound right here. A company surcharging almost 37% for a foreign drivers license sounds awfully excessive to me.

I would call the company directly and see if they give you the same reason that your agent gave you.
Also, follow up on blue wynd's advice to see if providing a UK record will help. In not, I would definitely shop around for another carrier. The carriers I'm familiar with only charge a fraction of that for a foreign license surcharge.