DickButt

So i've recently started a small dealership, i purchased a policy from National Continental for 4500 a year to insure my cars. This included 25000 worth of inventory,100,000 in liability and a certain amount in shop insurance. The provider was a company called classic insurance services, (which basically means they just sell me the insurance and handle most of my problems.) I was quoted 4500 after they gathered all the needed info and ran driving records and all that. So we go to sign the policy and we go over all the terms, one of them being i can deliver or pickup vehicles beyond a 50 mile radius up to 12 times a year, anything more and the premium goes up. What this means is i can buy or sell at an auction over 50 miles only 12 times a year, it DOES NOT pertain to driving in general over 50 miles. So we sign it and the entire amount was paid. A month later i get a bill from national continental for 2800 saying "new policy". When i called to ask, the lady at classic insurance tells me they forgot to add in the 12 trips a year into the quote i was given and if i wanted those 12 trips a year, id need to pay the 2800. (which equals to 233.33 a trip?!?!?!) Since i have the signed policy, is this legal? I am now getting letters from them saying they will cancel if i refuse to pay. Should i console with a lawyer?

Computer_Nerd

You can console with a tissue, but consult an underwriter.

The policy expires as written when the existing policy is up if they made a mistake and you've already paid the premium for the policy as written. Allstate did that to me this period. GOt a letter stating "our bad, note that the renewal will be at a higher rate."

You do not have to pay the bill for services that they singed into the contract but mistakenly did not bill you for. They do have the right to not offer you a policy at the same rate when your existing policy expires, which it appears to be an additional $2800.

DickButt

ok, i might be having a stupid day but im not sure if im following you or not.
You're saying i wouldnt be stuck with a bill that they messed up on for the current policy (8 months left), but they could change the rate of a new one when the term is up? Is this what you're saying? Im really only worried about this policy at the moment....

Lord Humongous

Call a lawyer

92dx757

classic ins. = crook

better be ready for the audit when you finally cancel them.

B EMDBLU

lawyer won't do any good.

your rate can change for any mistake they make at the time of binding once an underwirter touches the policy


It sucks. You can re-coup the unearned premium but only when you find new insurance.

DickButt

so youre saying if i change insurace companies, ill get that difference back?

DickButt

Update-- Talked to the superviser today for a good 30 minutes. Basically they claim they do their judgments based on a STRAIGHT LINE distance, not driving directions. They claim that the city of gloucester is 52 miles from chesapeake, which is why they're charging me 2800 for being over 50 miles. I said they have to factor in my exact address as well as the auctions exact address, and she says there is no way to do this. So she then says she mapquests the driving distance and it comes to 54 miles. I look at the map and see all route, and its quite clear a straight line would be considerably less. When i pointed this out, she basically said "Can you prove it?" I told the lady im sitting here staring at the fucking map, and even manually measured by hand using there scale. It comes out to about 43 miles. Once again this is quite fucking obvious, but she doesnt seem to be inclined to help. She said to fax in a letter to HER, saying that im disputing the distance and to provide proof, and to call her back in about 3 days. WTF?!?

PyAri

Wow, that is really shitty.
Hopefully it works out for you, let us know.

DickButt

Ill find out tommorow.