Question

Can an insurance agent charge extra added fees just for making payments via ACH or for a hard copy of my policy?

I recently spoke with a gentleman about getting my 1996 Honda Civic 2-Door Coupe insured. After finding the monthly premiums to my liking I agreed to purchase this insurance. I was sent almost 40 pages to sign and initial via Email DocuSign. After completing the signatures/initials I read: "to obtain a hard copy of your policy you will be charged a fee of $8." Isn't it the insurance provider's obligation to provide their insured client with a copy of the policies that they're paying for? Can an insurance company force the insured to pay a fee ($6 to $10) along with the premium amount the insured agreed to pay for ACH payments?

Nov 20, 2019 Phoenix, AZ

Answer
Kristine Lee

Nov 20, 2019

While I don't think your insurance agent is doing anything illegal, it's good practice for agencies to have fee disclosures. They can charge fees for services to make a few extra dollars but they should disclose it. I highly recommend shopping for your insurance and finding a new agent who won't charge for things like sending you forms or making a payment. Also, if your agent can't explain things on the policy and is being shady about doing business that's all the more reason to change to a better place. You can compare quotes online here or if you work with our agency, we do not charge any fees to do business.

If you have any questions, don't hesitate to ask.


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