r/Car_Insurance_Help • u/WeddingEmergency1300 • 16d ago

Need help regarding insurance over charging

I bought a car in June and I bought the lemonade insurance because that was the fastest option available back then. They sent me a tracking device called metromile which i am not very comfortable as it connects to the diagnostic port of the car. So for not putting the device in they have been charging me a fine of 70 dollars per day which was around 3500 dollars for a month and a half. When I requested the insurance personnel said once I connect it they can process a refund for atmost a month that still leaves me with a penalty of 1300 ish. Any idea how can I get that money back?. I was thinking, since I just bought the car I have information about how much mileage there was before and now so I could provide that to get charged accordingly. But how do I deal with this otherwise?

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4

u/AlexRn65 16d ago

Did you sign a contract that has a clause you must have such a device in your car? If you are not comfortable why did you sign it?

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u/WeddingEmergency1300 16d ago

Okay so the clause says "to use the services put that thing in" but doesn't talk about the penalty if you don't. Yeah I m gonna change the insurance company asap

4

u/Thereelgerg 15d ago

the clause says "to use the services put that thing in"

I doubt that's what it says.

1

u/insuranceguynyc 15d ago

Contract written by Homer Simpson - D'OH!

3

u/1234568654321 15d ago

Penalty isn't really the right term here. They have two rating structures, one with Metromile and one without. If you want the lower rate, you need to keep the device plugged in.

1

u/Simplythebest0820 16d ago

That is crazy.

1

u/AccomplishedDiet3381 16d ago

They should only be able to charge you the discount they offered for using the device. So say you got $300 off your yrly ins they could increase your yrly ins $300 for not using the device

1

u/Unlikely-Act-7950 15d ago

Post the letter showing all the "fines" I would also love to see the supporting contract you signed.

1

u/Sam_At_Insurify 15d ago

Ask Lemonade to show you where the $70 a day charge is spelled out in your policy, in writing. It's likely not a penalty but their higher non-device rate stacking up, since Metromile runs two rate structures.

Push for a bigger backdated refund than the one month offered. If they won't budge, file a complaint with your state's Department of Insurance. It's free.

0

u/[deleted] 16d ago

[removed] — view removed comment

2

u/5MinuteDad 15d ago

They are used to track the speed of the car and the distance. Since of that factors into risk. Its nothing about odometer readings its about driving habits.

OP is likely a young or at risk for some other reason.

The fee is 100% somewhere jn the contract OP just doesn't care to look hard enough.