Insurance company charging 3x deductible...

[TAlsgard]

So, my wife rear ended someone today. It was a (moderately heavy) glancing blow so everyone is okay but to add insult to injury, her insurance company is charging her 3x the deductible due to it being a "new policy". She's been with this company for over 5 years but every year it seems they write it as a new policy. They are stating that during the first 60 days of said new policy, any claim is charged triple deductible.

I've never heard of such a thing. Is this even a legal practice? It's bad enough that she's nearly upside down on the loan and will most likely have to pay the other party's deductible but to now be charged $1800 on a $600 deductible policy seems obsurd. Is this a thing? Like I said, I've never heard of that before in my life.

Thank you all for any input.

 

[Markthebroker]

Ask the person at the insurance company that told you that, where it says so in the policy. You should be working with your agent who is (or should be) on your side.

Hopefull you are with a real insurance company, and not some cartoon character tv commercial insurance company.

Let us know what the carrier says, and if need be we can point you towards a low cost prepaid legal service that will write a letter for you for next to nothing.

 

[adjusterjack]

Like I said, I've never heard of that before in my life.

Did it ever occur to you to take out the policy and READ IT?

Do that now and see what it says about the deductible.

 

[InsCommentary]

Ask for this in writing, citing the applicable policy language verbatim. I've never heard of this, but I haven't quite been in the business for 50 years yet. I don't think I've ever come across a $600 deductible.

Insurance is not a commodity differentiated only by price. If this policy was cheaper than another policy you considered, now you probably know why.

 

[djs]

Well, I've heard of a $600 deductible but not tripling the deductible during the first stage of a policy. If you have been with them for 5 years, then definitely not. A lot of agents do rewrite policies every year, otherwise, they normally just renew. Are you sure you heard what they said correctly? Its easy to misunderstand something in the frantic time after even a minor fender bender.

You should not be paying a deductible at all for the other persons car. This is covered under your property damage coverage which should have a $0 deductible on a personal policy.

 

[InsCommentary]

Are you willing to name the insurer?