On 4/30 ---- New customer came into the office to purchase insurance. Her rate issued was $115 per month. Upon issue, she asks, "Now this is all im going to have to pay each and every month?"
Me: Yes Ma'am.
***FAST FORWARD TO TODAY. 6/8*****
Phone rings :
She: You told me my premium was only going to be $115 a month, so why did I get a bill for $154 this month???
Me: Well i dunno, Let me call underwriting to find that answer and i will call you back.
*** 5 mins later****
Me: Okay, I know why your rate is now $154. Do you remember having an accident a day before you came in here to take out the policy.....Hitting a parked car?
Her: Well yes, but it was just a scratch & paid her out of pocket.
Me: If thats so, then why did you go back to the person you hit after purchasing a policy from me and give her your new Insurance information?
Her: I went back to pay her.
Me: Well isnt it interesting that the lady you paid still called the company ( that recorded the call) ....and tried to turn in the claim on a wreck that happened the day before?
Her: I guess so.
Me: Anyways. By her calling, there is now discovery of a prior accident therefore, even tho your policy was not yet active at the time of the claim (and we are not liable to pay), you still are obligated to be charged for an "at -fault" accident and this new discovery causes your policy to have an increased rate.
Her: Ohhh okay then.