Complaint Review: Hanovor Insurance Company

To whom it may concern,

I have been with Hanover Insurance Company (HIC) now for about a year and a half. I recently had a situation that almost caused my Auto / Home Insurance to be canceled through no fault of my own.

When I started with HIC, my employer had a group arrangement with HIC to take out the Monthly cost of my Auto / Home Insurance from my payroll check.

In May of 2003, I received a letter from HIC that said my Policy with HIC has been Changed to installment direct billing to your home.

Although this was a surprise to me, I didn't really have an issue with it, as the only thing that I assumed would be different was the fact that I would have to start sending HIC a check for the Monthly amount through the mail instead of having the amount deducted from my payroll check.

About 2 Months ago, I was a few days late getting a Monthly payment in and received a letter that I owed $284.75 from HIC. Since my normal Monthly payments for my Auto / Home Insurance was $121 and some change, I just figured that this was a notice to pay the Month prior and the current Month combined, due to the fact that I was late a few days sending in my Monthly payment.

In a more recent bill from HIC, it again said I owed $284.75 and a notice that stated, Cancellation to take effect at 12:01am on 10/21/03.

Needless to say, I was a little more then confused by the 2nd bill that said I owed $284.75 and threatened the cancellation of my Auto / Home Insurance. Prior to the 2nd bill, I knew that HIC had received my late payment and so I shouldn't have got a 2nd bill for the amount of $284.75.

Being very confused about the matter, I called HIC today (10/15/03) and explained to the Customer Service Representative, that I didn't understand why I am getting a bill for double the amount I usually pay per Month.

The Rep explained to me that I was on a group payment plan that was deducted from my payroll check through my employer, but since my employer has opted to not participate in the group plan any more, that I am now receiving the bills at my home.

I explained to the Rep that I knew that because I received a letter from HIC explaining that I would start receiving a bill in the mail for my Monthly payments.

The Rep went on to tell me that I was no longer on a Monthly bill client, that I was on what HIC calls a 4 payment cycle. That means I pay my full Term Balance in 4 payments and the payment schedule for this is the 1st, 2nd, 5th and 8th Month of the 12 Month Term period and that HIC sent me a letter about this change.

I quickly informed the Rep that HIC did no such thing. I received no letter explaining this change and how I would be billed differently from the way I had been getting billed and making payments.

The Rep didn't apologize about this at all, instead she told me that if I didn't like the way that HIC had the payment terms set up, that I could find my Insurance else were.

I am 37 years old and have been paying for Auto Insurance every since I was 16 years old and have never once had the threat of having my Insurance canceled like HIC has done.

To make matters worse, the Rep told me if HIC didn't receive a payment from me in the amount of $284.75 by Monday, October 20th, 2003 HIC was going to cancel my Auto / Home Insurance.

This forced me to send a $284.75 check via USPS Express mail today (10/15/03) at a cost to me of $13.65 for next day delivery to HIC, so my Auto / Home Insurance won't be canceled by HIC.

I am extremely taken back by this whole situation with HIC as they have failed to inform me (the Customer) of the payment changes to my Policy expecting me I guess to figure it out on my own, then when I didn't, say they are going to cancel my Policies.

Don't send the Customer vague letters about the changes (outlines above) and expect the Customer to figure out what to do and then threaten to cancel their Policies when they are making their payments like they are supposed to.

HIC has to be held accountable for their poor business practices, as in this case. I for one as a Customer will not stand by and allow a Company to change my payment terms and not properly inform me without saying something about it!

I almost think that what HIC has done to me is on the side of illegal and I bet there is a law out there that says a Company cannot do what HIC has done to me without full and proper notification to the Customer first.

I will start by requesting that HIC apply a $13.65 credit to my HIC account for the $13.65 out of pocket expense to have the $284.75 check payment mailed out by USPS Express Mail, as the Rep I spoke with today (10/15/03) told me that is what I would have to do to get the payment to HIC before 10/20/03 to avoid cancellation of my Auto / Home Insurance.

I also request that the Big Wigs at HIC stand up and take note of their business practices and understand that we are working people that can't afford to do things only one way (their way).

This means they need to sit down and evaluate the policy on their 4 payment policy in a 12 Month period. I am a working man that can't afford to pay $284.75 on the 1st & again on the 2nd Month of my 12 Month Term. That is $569.50 in 2 Months and that is not practical in the real world.

Whoever came up with your current 4 payment policy (1st, 2nd, 5th, 8th Month payments) should be fired in my opinion and if that includes the President of HIC, so be it.

Your Company provides Insurance to working people that have other needs and obligations (not just Insurance) and I for one would ask you to reevaluate your 4 payment policy to the 1st, 3rd, 6th, 9th Month of a 12 Month Term.

This makes more since to working people and is something that can be budgeted for by working people.

To let you know I am serious about this, I am making it my personal goal to send this letter to as many places as I can that will be sure to impact your Company in a negative way, just as you have caused me to be impacted in a negative way.

To name just a few locations that this letter will end up (Freedom of Speech):


BBB
Consumeraffairs.com
Complaints.com
Ripoffreport.com
Screwedcentral.com
insurancequotesnationwide.com (already posted this letter at this internet site)

P.S. I expect to be taken serious enough about this, that the President of HIC reads this letter and acts accordingly about this situation.


Sincerely,

A.J.B.

T.
Colorado Springs, Colorado
U.S.A.