Can I sue an insurance agency that made mistakes on my insurance application that caused my premium to go up?

  • by Shay
  • Apr 07,2017
  • 11 answers

In January of this year I got auto insurance from a carrier through a storefront Insurance Agency. I was given a set premium to pay every month for 6 months. On my second month I received a bill showing that my following 4 payments would increase by $50. I was told it was because a discount that I didn't qualify for had taken away. The discount was for having uninterrupted insurance for six months up until the day that I got insurance. That wasn't true and I never said that I did. I had been truthful that the last time I had insurance on my car was October of last year. I even provided my previous insurance card which showed it was from April to October. The insurance agency either purposely or mistakenly put in false information that gave me a discount I didn't truly qualify for. But I didn't give them any false information​, or do anything wrong. Yet I'm paying for their mistake. I have to continue to pay my car insurance because I can't go without it, and now I can't find anything cheaper. Can I sue them for the money they're causing me to pay with a higher premium.


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Insurance Answers (11)

highspeedkid 3 months ago

You can sue for just about anything, but you wont win this one.

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coraann 3 months ago

You would lose and be required to pay all the legal fees for both.

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tro 3 months ago

sounds like an unscrupulous agent and since he is licensed by the state if you can prove your protestations you can report him to the licensing agency and if you prevail he will lose his license, I doubt you will be compensated but it is a possibility

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Zarnev 3 months ago

They cannot by law give you a discount that you don't qualify for. If they did give you that discount they could lose their license to operate in that state.
You can try to sue them but you won't win because the court knows that they cannot give you that discount without them breaking the law.
You would have better luck bringing a case against the customer service representative that took your information if you can prove that they knew you didn't have a lapse in coverage and gave you that discount just to get the sale. Showing them an insurance card would imply that you had current insurance. You'll have to prove that you told them you didn't have current insurance.

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fcas80 3 months ago

You can try to sue them in small claims court but you are unlikely to win.
If you are unhappy with your agent, take your business elsewhere.

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Judy 3 months ago

No, you aren't paying for their mistake, you're paying for what you owe. You can continue to look for something cheapaer and go with someone else, but you have zero chance of winning a lawsuit.

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Flower 3 months ago

Just inform them of the error and ask for a refund of overpayment of premiums. It is a small amount and nothing to sue about.

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Ryan M 3 months ago

Instead of making a big deal out of nothing, why don't you inform them of the mistake and work it out. Suing them in court over chump change isn't smart. How are you planning on trying to collect without costing yourself your ENTIRE settlement in fees and effort?
In either case, you will not get back anything that you paid KNOWING of the mistake. When you paid, you accepted it. What EFFORT did you make to mitigate your damages.....other than ranting on a website to strangers? You can change carriers at ANY point. If this is the cheapest, then you are getting what you paid for...cheap service.

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Bob 3 months ago

nope you can't

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Andy L. 3 months ago

You can theoretically sue anyone for anything. This is America, the most litigious country in the world.
However, there is an issue of damages. In the correction that occurred, you have no loss. Your premium is corrected to what it should have been, and you are free to change insurance companies at any time valid from the date of change.
Even if you call the agency negligent, what money has been lost by it?
You go to court eventually, prove that the mistake was purposeful or against what an agent is supposed to be doing, and then get a $0 award because you were not damaged by the error.
It seems like a lot of effort for nothing, and it does cost money to file a small claims complaint. You probably would not even be awarded that money back.

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DEBS 3 months ago

You could sue, but you'd spend more time and money doing that than what you are paying. If it were me I would find the next best rate out there and go with it unless it was way too high. To me, this is an indication that they will do whatever they can not to pay out a legitimate claim if you have one. Threaten them first before changing if you like.

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