Q: Can an auto insurance company legally change a policy deductible after payment was to be taken but they have yet to.

Policy is active as of feb 14th 2021 for a motorcycle policy. Temp permit for 30days has been issued. Policy is for 1 year. They have yet to take the full payment on their own behalf. They state they can't offer a 500 deductible anymore due to underwriting, due to the value of the bike. They state it has to be a 1000 deductible. They have over valued the motorcycle and state because of its value a 500 deductible is not possible. Payment was to be taken feb 14th 2021. They have already emailed me a temporary policy for 30 days effective feb 14th 2021.

I have argued and stated i will not accept this change. They are saying i have no choice. Can they legally do this?

1 Lawyer Answer
Peter N. Munsing
Peter N. Munsing
Answered

A: As a possible case of mutual mistake you have a right to cancel and go with other insurance. Right now if you need to ride your bike, you need insurnace, so I'd suggest you stay with them, shop around. Other companies could have the same deal or higher rates. But unless you have paid and it was a deal, sounds like everything was provisional.

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