nkg1@ihlpg.UUCP (Neeraj K. Gupta) (08/24/86)
A few months back I moved to Chicago area from Michigan State. I needed to renew my car insurance. Since I had AAA insurance in Michigan, I approached AAA in my area. The agent told me that since I had AAA insurance in Michigan, so all my records would be transferred from there and took a copy of my previous policy statement. He quoted approximately the same amount as I was paying in Michigan. So I did not ask many questions. A few days later they sent me a questionaire to fill up saying it was to help them serve me better. One of the questions was if I was involved in any accident in the past four years. I had one about three years back. So I replied in affirmative. A few days AFTER THIS they sent me a notice saying my premium was being increased by about $60.00 for three months. I wrote a letter to the manager and also talked to him on phone questioning such an act since there was no change in my driving record and also how could it be in the middle of a contract. He said my letter has been forwarded to the head office. For weeks there was no response. The manager told me that since head office had not responded, I had nothing to worry about. Suddenly, yesterday, Aug.22 , I got a notice of cancellation. Lots of arguments with managers in head office, no result. 1) THE AGENT HAD NOT DISCUSSED WITH ME ANY OF THESE POLICIES. 2) I WAS FORCED TO BECOME AAA CLUB MEMBER FOR $40.00 PER YEAR. 3) THERE WAS $15.00 APPLICATION FEES. 4) I HAD PAID FOR 6 MONTHS, ENDING NOV. '86 5) HAD I KNOWN THIS CAN HAPPEN, I WOULD HAVE SHOPPED AROUND AND ATLEAST SAVED MEMBERSHIP FEES OF $40.00 6) THEY ARE UNWIILING TO REFUND THESE EXTRA AMOUNTS. WHAT MAKES ME ANGRY IS NOT THE AMOUNT, BUT HOW THE MANAGER AND THE AGENT MISGUIDED ME, AND HOW THE CONSUMER IS AT THE MERCY OF THESE INSURANCE COMPANIES. THE AGENT KNEW MICHIGAN IS A NO FAULT STATE. A TALK WITH DIRECTOR OF INSURANCE CONFIRMED, THE PREMIUM CAN BE INCREASED ANY TIME AND BY ANY RATE. THERE IS NO REGULATION OF THESE RATES. ****** CAN ANYTHING BE DONE TO STOP SUCH THINGS IN FUTURE ***** A TALK WITH SOME FRIENDS INDICATED THERE ARE MANY SIMILAR STORIES. BEWARE ! BEWARE !! OF THESE INSURANCE COMPANIES.