Legal Question in Credit and Debt Law in California
I was given a quote by Farmers Insurance company for may home and 2 cars. After I switched to them and paid the balance in full within 2 months, I received another bill for $395. I contacted them and questioned the extra bill and was told the agent made a mistake (and this was after they sent me policy and the cards). when I refused to pay the extra amount they sent me a letter informing me that they are cancelling my policy 2 months early unless I pay, which I refused and they cancelled the policy and sent me a check for $84. A month later the sent me another bill for $69 and when I refused to pay that one too, they have sent my account to a collection agency. I want to know if there is a way for me to fight them?
2 Answers from Attorneys
As is often the case with matters like this, it depends upon the language in the insurance binder and policy. From policies I have seen, they are written in such a way that the insurance company can adjust the premium after the policy is placed, and bill for the difference. Unless you can prove that it was "bait & switch," you may have contractually agreed to their doing exactly what they did. As for the additional $69, I wouldn't let that ruin your credit. Pay it under protest (after demanding proof and an explanation for why it is owed) and then pursue them in Small Claims Court if the charge is not appropriate. For a reliable opinion on this matter, you need to have an attorney who is versed with insurance law review the policy and binder.
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I would complain in writing to the Insurance Commissioner. Many attorneys have stories to tell about the insurance company you mentioned.
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