Am I Right Or Wrong? Car Insurance Refund Question Please Help?
I got auto insurance on September 14 2009. I made a deposit of $225.00. My auto quote was $798.00 for just liability. I made the first payment of $92.71 and canceled the next month on October 15 2009. My vehicle broke down and I sold it. When I canceled I was told that I would be able to get a partial refund and it should take about a month.
So I waited patiently, I figured it may be for just a $100 but would help since I am a young college student. So its been over a month and I call insurance company. The woman was very rude and did not try to help me understand why I could not get a refund after I was told previously and instead of patiently explaining it to me hung up on me. She told me I was quoted for $789 and that Allstate gave her company only $616 back and that I owed her company $9 bucks… This does not seem right to me .. From my calculations I gave them $317.71 for a month and half insurance. If you deduct what I payed plus what they got back from the insurance I figure they owe me at least something..
225.00(deposit)+92.71(one payment)= $317.71 what I gave them ,,then the quote and money given back from Allstate $798.00(insurance)-$616.00(refunded back to the company)=182.00 ..then from what i paid $317.71(total I paid)-182.00(balance from insurance)=$135.71
Am i thinking about this the right way? I have a feeling they are trying to bamboozle me because I can do math
Can someone help me figure if these people are scamming me since I am young? thanks
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December 28th, 2009 at 10:58 am
[...] post: Car Insurance | Am I Right Or Wrong? Car Insurance Refund Question … By admin | category: best car insurance | tags: auto-insurance, best-car, first-payment, [...]
December 28th, 2009 at 11:17 am
autoinsurance.undonet.com – I switched to this car insurance from them, cause it gives much cheaper rates in my area.
December 28th, 2009 at 12:37 pm
To answer your question “Can someone help me figure if these people are scamming me since I am young?”, the answer is:
No. They are not scamming you because you are young. Your age is not the reason that they are scamming you. They are scamming you for other reasons. They are scamming older customers also.
December 28th, 2009 at 4:22 pm
[...] is the original post: Car Insurance | Am I Right Or Wrong? Car Insurance Refund Question … By admin | category: auto insurance quote rate | tags: entry, filed-under, first-payment, [...]
December 28th, 2009 at 5:20 pm
Ask Allstate to send you a statement to show how the additional premium was calculated. at least you’ll have something in writing to confirm or deny whether you’re being ripped off.
December 28th, 2009 at 6:41 pm
Your calculations look right to me. But (1) they should have gotten more back from Allstate, since the $798 annual cost translates to $66.50 per month. Two months’ coverage would have been worth $133, not $182. But (2) even if both you and the broker are going to accept getting shafted by Allstate, then the money the broker was “out” – $182 would seem to be your liability and you should be entitled to the difference between that “debt” and what you paid.
December 28th, 2009 at 11:41 pm
They may well have “short rated” the policy; this is where they do not owe you a full refund if you cancel before term. The best thing to do would be to go to your agent and ask for their assistance in sorting this out. They get paid 10% to 15% of your annual premium for a reason. Good luck.
December 29th, 2009 at 3:13 am
The basic problem with your math, is that when you cancel your policy mid term, it’s subject to ‘short rate’ cancellation, not ‘pro rate’ cancellation. In many states, they can also charge a cancellation fee.
So. Annual premium *which might not have been $789 – that’s just the initial quote*, minus cancellation credit of $616 equals earned premium.
Earned premium, minus amount you paid in, is the premium due back to you.