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Bait and switch insurance rates

Posted By: Tim Quinones

Q

I bought auto insurance from a State Farm agent and after I paid for and received the policy they changed the agreed upon rate by over $300. Is that legal?

A

They can change only under certain circumstances. One is, if they find out that you lied on the application. It could be about undisclosed household members, undisclosed tickets, undisclosed accidents, etc. The other could be if you make some kind of change to your policy – moving, or adding a new car, or an extra driver, or adding coverage. You can check your policy documents to see if the company can change rates mid policy and under what circumstances. You can also ask them on what basis they are changing your premium. You have the right to know.  We hope that this answer provides you some basic understanding of the law in this area and wish you the best of luck in this situation.

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