ComplaintsforPreferred Auto Insurance Company, Inc.

• Initial Complaint

  10/11/2022

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  I bought a vehicle it was flooded out I had gap warranty and full coverage insurance and the car was totaled out by insurance company I was left an **** dollar balance due to insurance didnt pay book value of car to ******** financial so I am left with bad credit and charge off on my credit due to their mistake and they are not willing to fix it the under valued the vehicle and didnt pay off the total left on the car and now my credit is bad due to their mistake and Im left a balance that they should have covered and I have full coverage and gap warranty on vehicle which is a 2013 sonata

  Business response

  10/12/2022

  The vehicle was declared a total loss and the total loss evaluation used to determine the value of the vehicle was ***** Blue Book Private Party Value. When this policy of insurance was written the vehicle was insured for the value of the vehicle, not the amount of the loan on the vehicle. Payment was issued on this claim based on the vehicle's value less the customers deductible. Any balance owed on the customers account after the payment was made by us would be the responsibility of the customer. If the customer had Gap ********************** through the dealership where the vehicle was purchased and there is an issue with Gap Insurance not paying the loan balance off after the finance company received the payment from us, they would have to address that issue with the Gap Carrier. 

  Customer response

  10/12/2022

   
  Complaint: 18187486
  
  I am rejecting this response because:She did not go by ***** blue book value she went way under the value that was listed on ***** blue book and I spoke with gap and they even said you all under valued the car because you all didnt want to pay what you guys were suppose to which was the listed value on ***** blue book you all have been giving me the run around who is at fault and it is you guys and you all wont even try to make it right you all keep putting blame on everyone else but it is you all that didnt give me the value of my car on ***** blue book and its sad I have to go through this and now my credit isnt great anymore due to this situation 
  
  Sincerely,
  
  *********************

  Business response

  10/19/2022

  The total loss evaluation used to determine the value of the vehicle was ***** Blue Book Private Party Value in Good Condition. Attached please find a copy of the evaluation used to determine the vehicle's value. The evaluation amount came back at $5,036.00, the $500.00 deductible was applied a payment in the amount of $4,536.00 was issued for the settlement of this total loss. 

• Initial Complaint

  01/18/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I signed up for a new policy on the 31st at $274 I tried cancel it on the third but nobody answered the phones phone on the fifth tells me I had to come in to sign a policy cancellation form I did it for the third they correct it for the fifth 2 days difference. Fine. $274 divided by 31 days $8.84 times 6 days used $52.98 giving me a refund check of $221. They issue me a check for $50. It's a month to month policy no contract broken. I demand the rest of my money back.

  Business response

  02/07/2022

  Business Response /* (1000, 5, 2022/01/19) */ Contact Name and Title: Beth Henry, Underwriter Contact Phone: XXX-XXX-XXXX, # 109 Contact Email: ******@paic.com The insured's policy inception date was 12/30/21. The cancellation request signed by the insured was dated 1/5/22. Preferred Auto Insurance Company's Tennessee Automobile Manual of Rules, approved by the Tennessee Department of Insurance, states that "Insured request cancellations will be calculated on a short rate basis (90% of prorated return premium)", meaning the insured is assessed a 10% short rate penalty. The 6 month premium for the policy was $1,382.00 plus $43.00 in fully earned, non-refundable, fees. The insured paid a $274.00 down payment. The "prorated" calculation for the cancellation of the policy effective 1/5/22 was $1,336.44; therefore, calculating 90% of the prorated return (short rate), at a charge of $133.64. The credit balance after the "prorated" calculation was $185.44; therefore, after deducting the 10% short rate penalty of $133.64, the return premium check to the insured was $51.80. An insured can cancel a policy at any time during the term; however, with the above mentioned rules applied.

• Initial Complaint

  09/30/2021

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I had a 2008 Chevy Impala with the Car Store of West TN located in Jackson, TN. My car was hit while it was parked, but the person fled the scene. Upon reaching out to the insurance company, an adjuster was sent out to take pictures of the car. The adjuster pulled on the inside of the truck to make the damage look worse. The car was then labeled as "total loss." A check is in the process of being cut for $1780 to the car store for damages, but it was suppose to include my $500 deductible according to ********. I attached a copy of the message. I have been with this insurance company for some time now, and I feel like I'm getting mistreated. I had to pay the $500 deductible. I'm treated very unfairly. Help me please! I'd like a refund for the whole policy I paid with them, plus my $500 I had to pay.

  Business response

  11/12/2021

  Business Response /* (1000, 5, 2021/10/04) */ Ms. ******* ***** has filed a collision claim with us for her 2008 Chevrolet Impala. The policy of insurance Ms. ***** purchased with us stipulates a $500 deductible on the 2008 Chevrolet Impala. The $500 deductible was applied for this claim by deducting it from the total loss settlement offer made to Ms. *****. The total loss paperwork sent to Ms. ***** gives the breakdown of the total loss offer showing the actual cash value of the vehicle to be $2,280.00 less the $500.00 deductible making the total amount to be paid for this claim $1,780.00. Consumer Response /* (3000, 7, 2021/10/05) */ (The consumer indicated he/she DID NOT accept the response from the business.) The $500 was not paid on my behalf. I had to pay an additional $500 out of pocket. Business Response /* (4000, 9, 2021/10/07) */ The $500 paid out of pocket by the customer was paid to the lienholder of the vehicle because the customer had a remaining balance on their loan after the lienholder receives payment from us for the total loss settlement amount. We applied the customers $500 deductible for this loss by taking it out of the total loss settlement offer. The customer is still responsible for any remaining balance owed on their loan with their lienholder after the payment from us is applied to their loan balance. Business Response /* (4000, 13, 2021/10/13) */ The form the customer is referring to states the deductible is included meaning it has been applied by deducting it from the actual cash value of the vehicle. The customer has completed and returned paperwork with that form which outlines the actual cash value to be $2,280.00 less the $500.00 deductible making the total loss settlement offer $1,780.00. The vehicle is a total loss by TN Code TCA XX-X-XXX (X)(A) which states when the damages to a vehicle exceeds 75% of the value of the vehicle, the vehicle is deemed a total loss. The repair cost for the customers vehicle was $3,537.65 and the value of the vehicle is $2,280.00. The repair cost is 155% of the vehicle's value which far exceeds the 75% total loss threshold therefore the customers vehicle was deemed a total loss.

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