What to Do If Your Auto Insurance is Overcharging You

It’s not always fun to pay for auto insurance coverage, but it could easily become upsetting if you find out that you’re being overcharged. Some insurance customers in California are processing these same emotions as news is revealed about auto insurer Mercury Insurance and the possibility that it has overcharged its customers.

The commissioner for the California Department of Insurance (CDI) is undergoing an investigation; however, in the meantime customers have to decide what to do on their end. If you find yourself in this situation, should you look for new auto insurance, take action against the company or do nothing at all. We will explore some options to consider if you think your car insurance company is overcharging you.

File a Complaint, Then Let Nature Take Its Course

In the case of Mercury Insurance, it seems that complaints had been filed, which prompted the commissioner to get involved. If you find yourself in this situation, you could very well start with contacting one of your company’s auto insurance specialists to see why you seem to be charged more than necessary.

If nothing is settled by taking this route then you could consider contacting your local department of insurance to file a complaint. Your call could very well prompt an investigation of the insurance company’s activities. If so, after filing your complaint, you could simply let nature take its course.

Initiate a Law Suit

There have been many cases in history where auto insurance companies have been sued by individuals or groups of individuals who have been overcharged.

For instance, in 2006 a class action lawsuit was filed against State Farm Insurance in Honolulu, Hawaii because the provider was improperly using credit scores to set rates for Hawaii customers, thus overcharging them for coverage.

The lawsuit included 1,396 State Farm policy members whose credit reports were misused. Rather than going through a long, drawn out lawsuit, State Farm agreed to settle the case for $1.2 million.

Of course, initiating a lawsuit or your own, or finding that it could escalate to a class action lawsuit where other parties are involved who have suffered the same setback could become time consuming. So if you decide that you want to take this route just to make sure you’re getting the best car insurance rates, it’s important to make sure that you’re ready for all that the process entails.

Find a New Auto Insurance Company

Another option that you have if you think you’re being overcharged is to consider a new car insurance policy with a different company. By conducting a quick auto insurance quotes comparison among the various companies out there, you could see who is charging the best rates for auto insurance.

However, before you get started, it’s a good look at the small print on your auto insurance policy, as well as all of the perks that may come with it. For instance, you could receive a discount for purchasing online auto insurance or adding a home insurance policy to your account.

Or you might find that a company could add a one-time service fee that others don’t. The idea is to cover your bases so that you get the best all-around coverage possible, especially if you’re leaving a company that has delivered the goods but seems to be overcharging you. So seek great auto insurance quotes, but also look for what the insurance company could do for you if you need to file a claim.

Of course, you don’t want to set out to get a cheap auto insurance policy without making sure that a company you’re working with will actually take care of you. Instead, you want to make sure that you’re being charged fairly for your coverage. So if you think that your company is taking advantage of you, hopefully one of the above options would help to you find the auto insurance best for you.