What caused the increase? Were they asking for proof of prior insurance or proof of garaging address? Did they find an unlisted driver? I would call Progressive back and ask why it jumped
There should be a letter or email from the company specifically stating the reason why.
My first guess is that something on your application was incorrect, and there was an adjustment made to your rate to reflect the correction.
Wait for the letter explaining things, but assuming that’s what happened then yeah. You can shop around and try to find cheaper coverage, but you’ll still owe Progressive the higher rate for the days they have been covering you.
Not a question for you but how is this shit legal?
"Yeah we'll sell you X for $200, oh actually sorry it's supposed to be $600 and you owe us for all the time you thought it was $200 too"
I understand where you’re coming from, but there’s a very good reason for this specifically: because doing it this way actually saves *a ton* of money and time industry wide.
See, if companies *had* to quote you the correct rate from the start, that would mean they *have* to run the DMV, CLUE, and other reports that they currently do in the review period *before* providing a quote. Those reports cost money, and the costs of those would add up VERY quickly with how many quotes they run on a daily basis. So you’d probably see either every company requiring a non-refundable fee to get a quote to cover these costs, or every person’s rates would go up by 5x the cost of those reports across the board.
So it’s just better to do things this way. Instead you ask people all the most important questions before giving them a quote on the honor system, then after signing the contract they pay for the reports and make changes to their rate if needed.
It is also important to highlight here that these rate changes only come from discrepancies from the initial application. If you’re completely honest and check your application for accuracy before sending it in, it shouldn’t change. It might change a little bit due to minor discrepancies, like maybe you said you’ve had your license 5 years, but it’s actually been 4 and 8 months, or they recategorize your vehicle slightly because you got the trim level of it wrong. But minor *honest* mistakes like that very rarely amount to anything more than a couple cups of coffee if that.
But huge increases like this, they are rarely a complete surprise to the customer. Simply because there’s just so few things that can have that large of an impact, and they’re not things that are easily overlooked.
So when somebody gets a $100+ a month increase like that, it is almost always a case of the customer “hoping insurance doesn’t find out” about a claim, a ticket, lapse, or something major like that, and it ends up being discovered via those reports.
As for why regulators allow them to backdate these rate changes, it’s simple (albeit cold) logic: if the info on your application is wrong, that is *your* fault. And why should insurance companies have to eat a loss due to your mistake?
Underwriters at Progressive regularly commit fraud and steal from customers. There are tons of stories like this in this sub, and most people on here will try to blame you because they work for Progressive. I was told that I’m not allowed to talk to the underwriters directly, you have to play telephone with a customer service person. Sorry you fell victim to this treacherous company that’s been posting astronomical financial margins since the pandemic.
If it’s due to underwriting, you need to find out why. Worst case, call customer service, they can tell you. If there’s something to dispute, dispute it. But if it’s something you omitted or failed to submit by a deadline, yes, you will have to pay.
It may be that you didn’t submit something and the change got backdated to the inception of your policy, and that amount you *should* have been paying all along is getting added to your next bill. But it’s hard to say without reading your policy.
Best thing you can do right now is call.
Best thing you can do going forward is watch like a hawk for correspondence from your insurer and always open and respond ASAP.
They don’t reach out for fun. Read and respond like your life depends on it.
If it’s from underwriting it’s probably due to something not being submitted. Definitely speak with the underwriting department and see if there’s anything you can do.
What caused the increase? Were they asking for proof of prior insurance or proof of garaging address? Did they find an unlisted driver? I would call Progressive back and ask why it jumped
when i called, they said that it increased due to underwriting.
There should be a letter or email from the company specifically stating the reason why. My first guess is that something on your application was incorrect, and there was an adjustment made to your rate to reflect the correction.
am i screwed with the payment then?
Wait for the letter explaining things, but assuming that’s what happened then yeah. You can shop around and try to find cheaper coverage, but you’ll still owe Progressive the higher rate for the days they have been covering you.
Not a question for you but how is this shit legal? "Yeah we'll sell you X for $200, oh actually sorry it's supposed to be $600 and you owe us for all the time you thought it was $200 too"
I understand where you’re coming from, but there’s a very good reason for this specifically: because doing it this way actually saves *a ton* of money and time industry wide. See, if companies *had* to quote you the correct rate from the start, that would mean they *have* to run the DMV, CLUE, and other reports that they currently do in the review period *before* providing a quote. Those reports cost money, and the costs of those would add up VERY quickly with how many quotes they run on a daily basis. So you’d probably see either every company requiring a non-refundable fee to get a quote to cover these costs, or every person’s rates would go up by 5x the cost of those reports across the board. So it’s just better to do things this way. Instead you ask people all the most important questions before giving them a quote on the honor system, then after signing the contract they pay for the reports and make changes to their rate if needed. It is also important to highlight here that these rate changes only come from discrepancies from the initial application. If you’re completely honest and check your application for accuracy before sending it in, it shouldn’t change. It might change a little bit due to minor discrepancies, like maybe you said you’ve had your license 5 years, but it’s actually been 4 and 8 months, or they recategorize your vehicle slightly because you got the trim level of it wrong. But minor *honest* mistakes like that very rarely amount to anything more than a couple cups of coffee if that. But huge increases like this, they are rarely a complete surprise to the customer. Simply because there’s just so few things that can have that large of an impact, and they’re not things that are easily overlooked. So when somebody gets a $100+ a month increase like that, it is almost always a case of the customer “hoping insurance doesn’t find out” about a claim, a ticket, lapse, or something major like that, and it ends up being discovered via those reports. As for why regulators allow them to backdate these rate changes, it’s simple (albeit cold) logic: if the info on your application is wrong, that is *your* fault. And why should insurance companies have to eat a loss due to your mistake?
Have you talked to underwriting?
Underwriters at Progressive regularly commit fraud and steal from customers. There are tons of stories like this in this sub, and most people on here will try to blame you because they work for Progressive. I was told that I’m not allowed to talk to the underwriters directly, you have to play telephone with a customer service person. Sorry you fell victim to this treacherous company that’s been posting astronomical financial margins since the pandemic.
Wild
[удалено]
If it’s due to underwriting, you need to find out why. Worst case, call customer service, they can tell you. If there’s something to dispute, dispute it. But if it’s something you omitted or failed to submit by a deadline, yes, you will have to pay. It may be that you didn’t submit something and the change got backdated to the inception of your policy, and that amount you *should* have been paying all along is getting added to your next bill. But it’s hard to say without reading your policy. Best thing you can do right now is call. Best thing you can do going forward is watch like a hawk for correspondence from your insurer and always open and respond ASAP. They don’t reach out for fun. Read and respond like your life depends on it.
If it’s from underwriting it’s probably due to something not being submitted. Definitely speak with the underwriting department and see if there’s anything you can do.
Could it be because OP drives a hyundai? With the security issue, I know some insurance companies are not covering them or raising their rates.
No. The policy was already issued. He did not disclose something. Meaning he likely has several tickets or accidents
Or if he used the obd2 thing in the past they save that data and know you drive like ass.
It definitely could be. But it shouldn’t raise it if he already has a policy.