Fees when cancelling an insurance policy - Progressive.

[mrsilv04]

I had to cancel a couple of insurance policies recently. I had been with the same local insurance broker for 11 years, but I had recently been reassigned to a new agent, with no notice. After a few interactions with this new agent, it was obvious that he was not up to the job. Time to move on.

I had to cancel a policy with Progressive, that the previous agent had written for me several years ago. I had zero claims with Progressive.

First, they charged me for 10% of the unused portion of the policy. Basically, 10% for doing nothing, and providing nothing. Then they charged me an addtional $10 for "policy fees". After all of these imaginary fees, they then prorated out the coverage, for each day that they'd provided coverage to me.

On the other policies, from a different company, they calculated the daily rate for coverage, multiplied it by the number of days that they had provided coverage, and refunded the remainder. No keeping 10% for doing nothing, and no policy fees.

Honestly, I'm not surprised with Progressive. I suspected that they could have the potential for some sleazy business practices if given the chance, and I was correct. Even though it cost me some money, I'm glad that we parted ways when we did.

 

[twouvakind]

Somebody has to pay for all that advertising

 

[Donald]

The money goes to Flo.

 

[Lyman]

They are one of the worst.

 

[AJB0009]

Originally Posted by Blkstanger
They are one of the worst.

+1

 

[Irishman]

Oh my!!!! That is bad. BTW, I hate insurance companies for many reasons.

 

[JeffKeryk]

I guess they get ya coming and going...

 

[DuckRyder]

It is probably related to earned premium.

 

[dishdude]

Who is charging you? Progressive or the broker? Did they show you the document that you signed agreeing to these fees?

It sounds like you're being charged for lost commission.

 

[Jimzz]

Yea look at the policy they sent you last time you renewed. Unless its spelled out there then do not accept any fees.

 

[SwampSurvivor]

I switched from them about halfway through a term and got the remainder back.

I got the F350 and they wouldn't insure it.

 

[Triple_Se7en]

I always move to another Insurance Company when the policy expires. My auto is billed every six months. If I decide to jump ship, I just let the policy run out.

 

[SeaJay]

It may have changed in recent years, but insurance policies traditionally didn't refund on a pro-rata basis to prevent policyholders from gaming the system (ie buy a hurricane policy a month before season starts and cancel it right after). I seem to recall they used a "short rate" table to determine the amount to refund. This would be stipulated in the policy contract in the cancellation section.

Insurance is a regulated business, contact the state insurance department in your state if your company has kept money that it was not contractually allowed to keep.

 

[4WD]

Originally Posted by Donald
The money goes to Flo.


So she won't have to work two jobs … and can quit the cafe … ☕ï¸

 

[spk2000]

I once had the same thing happen and have decided never again. Wonder how many people switch away from them and leave disgusted enough hat eventually they won't have any customers

 

[ford46guy]

Your state allows it. Insurance is quite regulated. If one does it, they all likely do.

 

[daves87rs]

Will become quite common with everything going on.

Fees and increases....

 

[Revving2Redline]

The name alone is enough to scare me away.

 

[mrsilv04]

Originally Posted by dishdude
Who is charging you? Progressive or the broker? Did they show you the document that you signed agreeing to these fees?

It sounds like you're being charged for lost commission.


The breakdown of the fees being charged to me came directly in an email from Progressive.

I made a quick search, but could not find a paper copy of a policy that I can't even remember signing, in my insurance file.

 

[mrsilv04]

Originally Posted by SeaJay
It may have changed in recent years, but insurance policies traditionally didn't refund on a pro-rata basis to prevent policyholders from gaming the system (ie buy a hurricane policy a month before season starts and cancel it right after). I seem to recall they used a "short rate" table to determine the amount to refund. This would be stipulated in the policy contract in the cancellation section.

Insurance is a regulated business, contact the state insurance department in your state if your company has kept money that it was not contractually allowed to keep.


I'd been a customer for several years... not just several months for a short term need policy. But as I found out, Progressive doesn't care how long you've been a customer, when there's money to be made.