Hi we've been with USAA for over 10 yrs now for our Auto/Recreation insurance company. This month on our bill i noticed our rates went up by 35+ dollars per month. I called and they said nothing has changed in our policy. They told us because the dates our policy renewed we have an extra bill in this cycle. So they had to charge us more so we wouldn't have to pay 2 bills in 1 month. I am so confused it seems like were making an extra payment for nothing. We Pay every month on time , so I'm not sure why we have to pay an extra payment to avoid a double billing. Only thing they could tell me is that it happens to alot of policyholders once or twice in the lifetime of the policy. Seems strange to me. Thanks for your responses!
Update:Our policy renewed on Feb 19th and Aug 19th 2011.
-Red --- Our monthly payment has never changed until our policy renewed. We never underpayed it has always been the same.
Update 3:If i take the extra amount we are paying and multiply by 6, I get the exact amount we used to pay per month. Basically they broke down our normal payment and divided it by 6 and stuck the extra amount onto our normal monthly bill. So 7 Bills in 6 month period! It's funny cause there only excuse is it happens once or twice in the lifetime of your policy!
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Sounds to me like they simply raised your rates and are making up a weird excuse. There's absolutely no reason you should have 7 bills in a 6 month period if you've always paid on time and haven't changed your bill plan. I'd be looking around for a new company, this is pretty ridiculous.
I have USAA and one payment for every cycle I get the same thing. Here's what happens, keep in mind I'm using round and random numbers to make the math easier.
They have insurance cycles of 6 months, so let's say your insurance for every 6 months is $650. Now, they may decide to only charge you a minimum payment of $100 a month, this means you still have $50 at the end of the 6 months to pay. Now, don't ask me why they don't just divide the $50 between the 6 months, I don't get it either. But you have a certain amount you have to pay every 6 months, with the option of paying a fraction of that amount every month. At the end you make that last payment, and whatever is left over, then your insurance renews for another 6 months and it starts over.
I really don't know why that has happened. I, too, have USAA auto insurance and have had no problems with the coverage, premiums or payments. One thing not mentioned was the anniversary date of your policy and when the policy was renewed My son also has USAA and is very satisfied with it. That is the only reason I can think of any added increase.
I have the same insurance for one car and an SUV. They keep raising rates for no reason, dont be afraid to switch car insurance sometimes the military discount isnt worth it.