Why is my Car Insurance Premium Higher?

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?

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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,

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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.