Question
We traded trucks about 3 or 4 weeks ago. I got a bill from the insurance company that we now owe $2600. Part of the problem is that the agent didn't drop the old truck. We were paying about $593 a month, and now it looks like we'll be up to about $648. When I called, the gal said that they require you to keep twice the monthly premium in the deposit account, but from where I'm sitting, it still doesn't add up.
Answer
I can understand your shock. Without knowing all the particulars of your payment agreement, its difficult to know what the specific parblem is.
But, let's see if we can decipher this and make some sense out of it.
First, the agent has an obligation to provide an explanation of the billing. Perhaps you can call your agent and ask them for a breakdown.
Ask questions such as:
What is the annual premium for the new vehicle?
What is the monthly premium?
What is the escrow for the new vehicle?
Ask the same questions regarding the old vehicle.
What was the annual premium for the old vehicle?
What was the monthly premium?
What was the escrow?
What amount of credit from the old vehicle has been applied to the account? (How much escrow, how much return premium for the last month the vehicle was insured?)
Is there a monthly installment fee? If so, how much?
Are you paying interest for premium financing? If so, how much?
Ask them to provide the detailed explanation in writing.
Once you've had the chance to review the numbers, if they still don't add up, call the agent and tell them it's not working and do review it again.
Perhaps once you've gone through it thoroughly with them, the problem will be resolved.
Connie