Phoenix, AZ asked in Insurance Bad Faith and Consumer Law for Arizona

Q: Auto Insurance is cancelling policy for a rate increase due to accounting error and failed to notify customer

My automobile insurance company randomly increased my rates mid-contract when I paid in full at the beginning of the policy. The cause of rate increase was an accounting error on one of my discounts and they discontinued the discount 2023. This happened in Jan 2023. They sent me an email notice of non-payment Feb 2023. I promptly paid the bill, but their system didn't process the transaction. I received another email notice of cancellation of policy due to non-payment April. Is there any legality in Arizona for them changing rates due to their accounting error and discontinuation of this specific discount, and trying to prorate the remaining months with that increase? They never sent me mailed letters and I only happened to see this information from my Agent emailing me communications. I feel like they need to send correspondence to the customer.

1 Lawyer Answer
Tim Akpinar
Tim Akpinar
  • Insurance Claims Lawyer
  • Little Neck, NY

A: An Arizona attorney could advise best, but your question remains open for three weeks. Nationwide, consumer rights matters involving insurance are usually overseen by state departments of insurance. Most states have such agencies. In your state, it looks like there is the Arizona Department of Insurance and Financial Institutions. You could try contacting them to see if they could offer guidance on the issues involving the cancellation and rate increases. Good luck

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