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Insurance Co. has surprise 500% increase in deductible

Started by Biketographer, May 10, 2022, 07:16:10 AM

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I read this twice - still not clear what is happening.

QuoteROCKFORD, Ill., May 9, 2022 /PRNewswire/ -- Insurance King is a high-volume non-standard insurance agency and they are taking additional steps to educate their customers with First Chicago Insurance Company of the potential for a 500% surcharge on vehicles with UMPD or Physical Damage coverages. "This could happen in the first 30 days of inception or within 30 days of a reinstatement," says Dan Block, president of Insurance King. "Insurance King has been told by First Chicago Insurance Company that we are their largest agent so it is highly likely to happen to our customer base. In 22 years in business, I have never heard of any other company having language like this in their policy!"

Found on Page 11 of the First Chicago Insurance Company IL Auto Policy

{In the event of a loss and subsequent loss settlement under Coverage G or H, we are authorized to make appropriate deductions from the loss settlement amount for: (a) the deductible stated in the Declarations for that particular insured auto; however, in the event of one or more of the following losses, a 500% assessment of the deductible amount shown on the declarations page shall be assessed against the loss settlement, if the loss occurs within 30 calendar days of policy inception, lapse in coverage, reinstatement, addition of a vehicle with Physical Damage Coverage, or addition of Physical Damage Coverage to an existing vehicle on the policy. i. Single vehicle loss IL MV 01 08 0122 12 ii. Hit and run loss iii. Theft loss iv. Vandalism loss}
"Insurance Carriers used to mail out physical policies, but over the years the carriers just post them as a PDF on their website in lieu of mailing them out. I could not find the policy on the carrier's website so we uploaded it to our website for all to review." A link to the auto policy is below.

Insurance King founded in 2001 is headquartered in Rockford, IL offering affordable Auto, Motorcycle, Renters, and SR-22 currently in CO, IA, IL, IN, KS, MO, MS, OH, TN, TX, and WI. Insurance King is a sponsor of NASCAR driver Josh Bilicki.