Renewal Fee for Car Insurance
Author: Consumercity
Posted: Wed Dec 15, 2004 6:15 pm
Post subject: Renewal Fee For Car Insurance
I've been in the insurance business for over 10 years. Today a guy called for a quote and said he wanted to switch companies because the one he's with now is charging a renewal fee of over $200!!
I've heard of installment fees, late fees, application fees and cancellation fees but I've never heard of companies charging fees to renew policies.
Have any of you heard of this and has it happened to you?
Author: NightStar
Posted: Wed Dec 15, 2004 6:19 pm
Post subject: Renewal Fee for Car Insurance
That was obviously an adverse action due to something contained in his credit report. That is really messed up with they are charging them kind of fees.
He should get a copy of his credit report, to see why they did this to him,
Author: Consumercity
Posted: Wed Dec 15, 2004 6:50 pm
Post subject: Renewal Fee for Car Insurance
If the "renewal fee" was charged because of his credit, then his insurance company broke the law. Whenever an adverse decision is based on credit, the insurance company is required to tell the insured and give contact info for the CRA that reported the information. I will advise the insured to question his insurance company about the bogus "renewal" fee and find out for sure why it was imposed. I've never heard credit related premium increases being referred to as a "fee" by any insurance company. If it is credit related, then calling it a "renewal fee" is fraudulent.
NightStar
Posted: Wed Dec 15, 2004 7:24 pm
Post subject: Renewal Fee for Car Insurance
I bet you anything that it is resulting from a credit check, and the insurance company failed to disclose to him the fact they checked his credit. Or if they didn't, he may yet receive a letter in the mail.
But if he contacts Choice Point, I am betting he will find a recent inquiry on his credit report.
Insurance companies are allowed to pull at re-newal, just not when a claim is filed.
I can think of no other justification for all of a sudden in the middle of his service with them, to automatically add a re-newal fee... unless it was originally provided for in his contract. But I had not heard of such a thing.
To me it just sounds like a credit check was done.
Author: Consumercity
Posted: Thu Dec 16, 2004 1:12 pm
Post subject: Renewal Fee for Car Insurance
NightStar, I agree. The rate increase has to be the result of a credit check. I think it is really messed up that they told him it was a "renewal fee". They broke the law, so I advised the insured to file a complaint with the Ohio Dept. of Insurance.
Posted: Wed Dec 15, 2004 6:15 pm
Post subject: Renewal Fee For Car Insurance
I've been in the insurance business for over 10 years. Today a guy called for a quote and said he wanted to switch companies because the one he's with now is charging a renewal fee of over $200!!
I've heard of installment fees, late fees, application fees and cancellation fees but I've never heard of companies charging fees to renew policies.
Have any of you heard of this and has it happened to you?
Author: NightStar
Posted: Wed Dec 15, 2004 6:19 pm
Post subject: Renewal Fee for Car Insurance
That was obviously an adverse action due to something contained in his credit report. That is really messed up with they are charging them kind of fees.
He should get a copy of his credit report, to see why they did this to him,
Author: Consumercity
Posted: Wed Dec 15, 2004 6:50 pm
Post subject: Renewal Fee for Car Insurance
If the "renewal fee" was charged because of his credit, then his insurance company broke the law. Whenever an adverse decision is based on credit, the insurance company is required to tell the insured and give contact info for the CRA that reported the information. I will advise the insured to question his insurance company about the bogus "renewal" fee and find out for sure why it was imposed. I've never heard credit related premium increases being referred to as a "fee" by any insurance company. If it is credit related, then calling it a "renewal fee" is fraudulent.
NightStar
Posted: Wed Dec 15, 2004 7:24 pm
Post subject: Renewal Fee for Car Insurance
I bet you anything that it is resulting from a credit check, and the insurance company failed to disclose to him the fact they checked his credit. Or if they didn't, he may yet receive a letter in the mail.
But if he contacts Choice Point, I am betting he will find a recent inquiry on his credit report.
Insurance companies are allowed to pull at re-newal, just not when a claim is filed.
I can think of no other justification for all of a sudden in the middle of his service with them, to automatically add a re-newal fee... unless it was originally provided for in his contract. But I had not heard of such a thing.
To me it just sounds like a credit check was done.
Author: Consumercity
Posted: Thu Dec 16, 2004 1:12 pm
Post subject: Renewal Fee for Car Insurance
NightStar, I agree. The rate increase has to be the result of a credit check. I think it is really messed up that they told him it was a "renewal fee". They broke the law, so I advised the insured to file a complaint with the Ohio Dept. of Insurance.
posted by CardRatings.com at 2:02 PM
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