Auto Insurance, Bait and Switch??

[gamblingsucks]

About two months ago I signed up online for auto insurance with Liberty Mutual. This was for my new car I just bought post Bk with a 25% APR. Liberty Mutual came back online and quoted me like $823 for 6 months which is about right since I live in NJ. It seemed like the best deal so I paid the $205 down payment and that was that.

Next day I get a call from Liberty Mutual saying "Were sorry theres been a change to your policy". I find out they now are quoting me $3200!!! for a 6 month policy. Apparently my unpaid parking tickets are the same as a 5 time convicted drunk driver in their eyes. Also since they check credit I think the BK might have had something to do with it. Ive never had an accident and have had maybe 1 or 2 violations very minor in the last few years. Anyway I tell them NOWAY I don't want it and I asked what about my down payment? She tells me they already applied it to this $3200 policy.

Now I really needed that money back at that time because I had other bills to pay. And of course I don't get it back and my bank begins to overdraft and return items on my account. Now im negative $150 in my bank and I have to do a stop payment on that check I gave for Liberty Mutual which is another $35. I call Liberty Mutual back up and say I put a stop payment on the check please terminate my policy which they do......but, they already mailed me out a refund check.

The bottom line is Liberty Mutual cost me a s**t load of bank fees because of their processing of policy and such and they sent me that money back. I got a call again from Liberty Mutual like 2 months ago saying we refunded you even though you did a stop payment. Now I'm asking myself do I have to return it? You did wind up costing me the same amount in bank fees. Can I send them a copy of my bankruptcy discharge from this year to end this thing???


Thanks,
Sorry for the horrible grammar

[magyar123]

Insurance companies have this habit of f....g people over, especially once they pull your credit report and you have lousy credit. On your online application you were probably asked about your driving record within the past 3-5 years. If you were truthful with that information - which they must have checked out, the next thing they did was to pull your credit report.
Their original 6 months quote was based on the online information that you gave them at the time.

[magyar123]

Went to Liberty Mutuals website and copied/pasted the following:

Information Disclosure: Where permitted by law we, like other insurance companies, use your Social Security Number to obtain an insurance score. An insurance score uses information from your credit report to help predict how often you are likely to file a claim and how expensive those claims will be. When we access your insurance score it has no impact on your credit rating. Your Social Security Number and insurance score are kept confidential, secure, and will not be resold or redistributed.

Note the words: "Where permitted by law". Obviously where you live, New Jersey, it is permitted.
Here in California they can't. Gov. Arnold The Terminator Schwarzenegger read them the riot act regarding this.

[JasonK94Z]

Geico just did me that way. Got a letter in the mail and things have gone up. Guess it was too good to be true. Still cheaper than what i used to have.

[SinkingFast]

Same thing with All State.

DH and I are on the title of the car son drives for lower insurance rates. Son got a wild hair that he wanted to take on the car all on his own. In his own name. So we called around getting insurance quotes.

All State came in the cheapest and son was all set to go with them. Until,........... The Agent mailed the paperwork with details about the coverage.

We carry the top limit coverage available with all the bells and whistles. All State was quoting son State Minimums. So I call the Agent and chat with him about the differences in coverage.

"Oh well. Your son is a Student. He has no other assets besides the car. That's what we recommend for people who don't own anything."

I'm thinking "Yeah! Right! Buddy!" Son is in college to hopefully get a good paying job. An injured party can go after future earnings.

I asked for a quote for coverage comparable to what we currently have on the car. It was more than double. So we said thanks, but no thanks.

You really gotta dot the i's and cross the t's to make sure you're comparing apples to apples with insurance companies. They'll promise you the sun and the stars and sell you the moon instead.

[gamblingsucks]

Do I have to pay them back?

[AMISLANDER]

Geico just did me that way. Got a letter in the mail and things have gone up. Guess it was too good to be true. Still cheaper than what i used to have.

Geico quoted me one price, I was going to switch but then FL dropped the PIP & I"m down to $60/mo....I figure better just to leave it at that. I only really drive to work & back (22 miles a day).

I think I had switched insurance prior to the bk & I don't want to mess it up now!