American National tries to increase rate AFTER 1st Bill & AFTER PAYMENT (USA)

akala

New member
Hi Guys,

I bought auto insurance through American National agent (physical store, in USA) and paid for 3 months online.

The 1st bill and paperwork from American National matched the original quote, which I paid online as soon as I received email notification (before paper bill arrived).

About 2 weeks later I received a new bill that lists a new charge "Endorsement premium" (with effective date same as policy start day), no explanation for rate increase is given.

I.e. rate increase occures not between 6 month periods, but WITHIN/DURING 1st 6 month period soon after I paid bill for the first 3 months (payment is split in 2 installments, 3 months each installment).

There's no kind of any change in my life or auto/driving related that could affect my policy (no new accidents, no hidden information etc.).

No even telemetric device involved.

Agent told me that this charge is a discount for "registering car within N days", which I did same day I bought insurance, and also send registration card to the American National agent. They promised to forward it to American National (head office I guess).

Just checked online billing on American National site and there is still an additional bill for already paid 3 months (a few bucks lower now).

Never seen rate change AFTER both quote and PAYMENT made (for 3 months), and even after bill is mailed.
I though rate must be fixed for 6 months?
How do you deal with such crap?

I cannot simply cancel this insurance, b/c they have my money for 3 months and also afraid that American National might refuse to pay in case of an incident b/c I didn't pay for brand new charge.

Any help is appreciated!
Thank you!
 
@akala The rate is not fixed or guaranteed, even after you make a payment. It does suck, and I’m sorry you’re going through this, but there is an underwriting period that insurers have during the beginning of a policy to make rate adjustments or correct mistakes.

You can shop around and cancel the policy, though, if you’re not happy. In most states, they should owe you a pro-rated refund for what you paid in advance and didn’t use. Before doing that, I’d call to make sure they don’t have any weird termination fees, though.
 
@mike331 Thank you!
Agent said earlier that policy can be cancelled after 3 months.
Wonder if rate increase gives me a way to cancel it w/o fees if they exist?
Probably this depends on particular state laws?
Sounds crazy, you buy smth with unknows price..., but its reality I get it.
 

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