I bought new car insurance for $1000/yr a few weeks ago. I filled out all the paper work and have to make my first payment for the next three months in a week. Yesterday they told me they made a mistake and that they will be charging me $2000/yr instead. Do I have to pay the higher amount amount for the time while I was insured by them (about 2 weeks) before they told me they made a mistake (and the mistake was entirely their fault)?
I'd think they would need to renew the contract at the new price if I actually wanted to stay with them. I plan on switching companies since it's a horrible rate, but would like to know if I can do anything if they do take the higher rate out of my account (I'm set up for direct withdrawals and I agreed to pay the next 3 months when the rate was $1000)?
They probably won't answer my email til monday, so I'm hoping someone here can help me out sooner. Thanks.|||You can send them a registered letter canceling the policy and get your bank to stop the payment. You will need to find alternate insurance immediately and if the first company did make an honest mistake, the new company will likely charge the same rate.|||No they can't make you pay that amount.... you are free to cancel the policy and get insurance someplace else, but I bet you will end up paying about $2000 someplace else. So your choice, pay or have no insaurance and yes they can change the amount like this.|||When they change rates after the fact, the contract should be void, and n payment necessary.
You did not agree to the higher rate, unless you signed an open ended contract, you owe nothing.
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