Why Did My Price Change After I Bought the Policy?

WV & OH ONLY

"I bought a car insurance policy at the price I was quoted, and now the company says it costs more. Why did my price change after I bought it?"

Getting one price and then being billed another is frustrating. I'd be annoyed too.

Your price can change after you buy because a quote is only based on what the company knew that day, and the final number depends on what your reports and policy details turn out to show. A driver, a ticket, a claim, a discount or the exact car may not have matched. You should be able to find out exactly which one it was.

Nobody here likes a number that moves. We want every client on the best rate possible, even when the facts change.

Once the correct facts are on the table, your company may no longer be your best option. Every company weighs those facts differently. We can run the corrected information through 13 companies and see where you stand now.

I'm not shy about it: call me. Send me your original quote and your new bill. I'll help you find what changed, then see who treats the real facts best.

WV & OH ONLY

Not usually. A quote is the company's answer to the facts it has been given so far. Think of it as a math problem. If one of the numbers going in turns out to be different, so does the answer.

That's one reason I don't get excited about a low number until I know what's behind it. I wrote more about that in The Cheapest Quote Will Cost You More.

In my experience, it's one of these:

• A driver nobody mentioned. Someone in the house has a license and wasn't on the application.
• An old ticket or accident. It's in the report even if you forgot about it.
• A discount that didn't check out. Prior insurance, a home policy or a good-student discount couldn't be confirmed.
• The car. A different trim or model than the quote assumed.
• The address. The car is really kept somewhere other than the address on the quote.
• The coverage. Limits or deductibles changed between the quote and the policy.

None of this means anyone lied. Most of the time, somebody guessed or forgot.

Yes. Federal law lets a consumer reporting company give a report to someone who intends to use it to underwrite insurance. A separate law lets insurers use state motor vehicle records for claims, antifraud, rating or underwriting.

If a consumer report was part of the reason, generally yes. The Federal Trade Commission tells insurers that a higher charge based on a report calls for a notice, even when the report played only a small part. That notice has to name the reporting company and tell you about your right to a free copy within 60 days and your right to dispute it.

If the change came from something else, like a car or driver being corrected, you may not get that kind of notice. Ask anyway.

They can, and new policies get less protection than older ones. In the business, those first weeks are commonly called the discovery window, because it's when the company is still finding out who it just insured. In West Virginia, the list of allowed reasons for canceling a private passenger auto liability policy kicks in once the policy has been in effect for 60 days. In Ohio, the similar protections generally don't apply to a new policy that's been in effect less than 90 days when the cancellation notice is mailed.

So if something is wrong during the discovery window, deal with it right away.

1. Ask exactly what changed, in plain words.

2. Check whether it's true. If a report is wrong, ask for a copy.

3. Don't drop the policy until new coverage is in place.

4. Have the real facts compared with other companies.

Got a bill that doesn't match your quote? Send it to me and let's see what happened.

WV & OH ONLY

Next in the series: Part 9, How Did Insurance Get Priced Before Computers?