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Dear Progressive:

Dear Progressive Home Advantage,

You might remember me.

I am the father of two young but adorable children who is a full time student with the adorable children's mother and a member of the national guard who fulfills all his obligations and makes payments on time and helps others and donates 10% of his income to either the poor or the church.

I'm also the name on one of your smaller policies. A policy started on January 12th for approximately $20k in insurance for a year, for a payment of $225? Something like that. I know it sounded a bit too nice. I should have known better.

You see back on March 10th my car was relieved of my book bag and several other bags containing items worth about 1/10th to 1/20th of my policy value. Trying to be high speed and reliable I thought I should report this as soon as possible and called that night for a police report. After doing that I was told by well meaning friends, "hey maybe your insurance will cover this?"

So Friday March 11th I called you to ask if this theft incident was something I should even talk to you about? The friendly lady said hey sure that's covered you can make a claim. So that morning I made a claim with your company. Because you know... that is what the insurance is for.

Imagine my surprise when Saturday March 19th I get a letter in the mail. A letter mailed 6 days after my claim. A letter saying my policy had been canceled. Due to "unfavorable loss experience".

I called you in surprise as soon as your office opened Monday. Your very cheerful professional staff explained that it was your policy to cancel any policies that made a claim within the first 60 days of the policy. Oh. Yeah that was a bit of a shock. You kindly sent me copies of my policy and pointed at page 32 on the right hand side where it explains that you can cancel the policy for any reason at all within the first 60 days. Ah bother.

To bad I hadn't waited until Monday instead of being high speed. Because Monday March 13th....would have been day 61. Instead of Friday March 11th, Day 58.

So as it is I'm sorry that the theft of my belongings happened three days too early for you and I dearly hope that you don't miss my business too much because I can no longer do business with you or any of your subsidiaries and as soon as I can I will be saving you the bother of insuring me for the least amount possible on the other items you say that you cover for me.

Respectfully,
Your former policy holder.

Comments

Cap'n John said…
Don't take this lying down. You need to read all the fine print, then fight this if you can. You made a claim THEN they canceled your policy. You were still covered by your policy when you made the claim.

Read the fine print. Then continue pushing this.

This reminds me of a medical situation I had a few years ago. I was insured through Blue Cross & a local provider, and shortly after a trip to the ER my local provider went bankrupt and were bought out by another of Blue Cross's healthcare provider partners.

The hospital billed the first provider (or Blue Cross, not sure exactly how it happens) but their claim was not paid because the old health care provider was now bankrupt, and the new health care provider refused to pay it because I was not yet covered by them at the time I was admitted to the ER.

So the hospital billed me directly.

I called Blue Cross to find out what was going on and was told the above story, but then the Blue Cross Rep went the extra mile. She told me to write a letter to the hospital refusing to pay, and to reference a specific case which makes it illegal for hospitals, doctors' offices, etc. to directly bill a patient for the cost of procedures covered by their health care provider. Although my health care provider was now bankrupt and the hospital was not able to get payment from them, at the time of my procedure they were not bankrupt and so I was still covered.

That's the crux of my story and how it relates to your own. Even though your insurance company was entitled to cancel your policy within the first 60 days, they didn't cancel it until after you made your claim. The policy was still in effect when you made your claim.

Read the fine print, then fight this.
Wulfa said…
We're doing everything we possibly can, but I think in the end we will be taking our business elsewhere. When I was talking to my mom about this whole mess I compared Progressive to Walmart: cheap and plentiful, but lacking in quality. I dislike shopping at Walmart, and I think with regards to insurance we're going to have to suck it up and go with a better company that might cost us more, but won't drop us for something like this.

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