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Question for the Money Doctors

Question submitted on Mar 6, 2014.

Question

Hello,

My car insurance company has increased the premium. Now i should pay 4150/month instead of $119/ month.
The reson they have increase is: They asked for odometer report after a year and I did not provide them with such information. Now my question from you is: Are they able to increase it and take the extra money from my credit card without my permission?
They said that they have send me an email prior to increase the premium however I did not receive it? If they are not authorized without my permission take any extra money ( because of higher premium) from my credit card then how I can complain from this insurance company?

Answer

Hi, thank you for the question. I assume you mean $150 per month rather than 4150 per month. I do not know the insurance company's policy for notifying you about a premium increase. Normally, this would come in the mail, but if you are signed up for electronic communication; then they may be able to send via email. Your best option is probably to challenge the increase, rather than argue that they can't charge you more on your credit card. If they don't comply to your satisfaction, you can always shop a different company with a lower rate. I hope this helps.


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