Complaint Review: Elephant Auto Insurance

I processed an auto quote and purchased my policy with Elephant insurance on 5/14/16 with an effective date of 5/21/16. Price was $2,000.73 for a one year policy which was about $120 less than I was paying before.

On 6/1, I received an email from the underwriting department. The underwriting department claimed that I had a lapse of insurance from 5/22/13 to 5/22/15. They requested I submit proof of insurance or else my policy would increase by $530.38; a 27% increase! Response was required by 6/8 or else my insurance would increase.

It was a ridiculous request. I have never had a lapse of insurance coverage not one day in the past 20 years. No insurance company has ever requested proof of insurance coverage before but I didn’t think it would be a difficult thing to complete. That was not the case.

On 6/4, I spent several hours on the phone with various insurance companies getting copies of documents I didn’t have handle. I submitted proof of insurance coverage for the prior three years, covering the dates requested via email. I submitted policy declaration pages, insurance ID cards, and even created a table to cross-reference the policy numbers. My last name changed during this period so I also submitted a court copy of the name change order. I assumed they couldn’t locate my prior insurance coverage due to the last name change even though my driver’s license number didn’t change but in any event I thought it prudent to submit since most of the insurance documents were under a former name.

On 6/10, I received a response from the underwriting department. This is 6 days after I turned in the documentation and 2 days after their deadline for my policy to increase. To my surprise, they did not accept my documentation. A declaration page and id card is insufficient evident of insurance. I have to call each company from the past three years and request a “Proof of Coverage letter or Letter of Experience (not a Declaration Page or ID Card)”.  My insurance was increased but not to worry, because if I can get this information, they will reverse the increase.

This specific request was not in the first letter but I am convinced that was by design. It is very apparent to me that this insurance company is dealing in deceptive sales practices. They lure you in with a low price and then set demands that you can never fulfill to justify increasing your price. They intentionally didn’t specify the document required in order to raise my rate. I am sure that many people who receive the underwriting bait-and-switch notice don’t respond so their rates go up automatically. Some people, like me, respond only to find out that the only documents we consumers receive and are familiar with (policies and id cards) is not sufficient. And so, our rate goes up. Either way, Elephant wins and I lose.

Except, I am cancelling my policy. And will warn anyone who asks me to never get a policy with Elephant. Any price they quote you is off by 27% because after the take your first month payment and have your bank information, they plan to increase your rate and keep drafting your account.