Sample Letter for Disputing Insurance Premium Increase

Insurance premiums can increase for a variety of reasons, from changes in risk profiles to broader market trends. If you’ve recently received notice that your insurance premium is going up, and you believe the increase is unwarranted, you have the right to challenge it. 

This article will guide you through writing a professional and effective dispute letter to your insurance company.

Step 1: Understand the Reason for the Increase

Before you write your letter, it’s essential to understand why your premium has increased. In many cases, the reason might be included in your renewal notice. 

If not, don’t hesitate to call your insurer to ask for more details. Common reasons can include filing a claim, changes in your credit score, changes in your risk profile, changes in state laws, or simply insurance inflation.

Step 2: Gather Your Supporting Documents

Once you know why your premium has increased, gather documents that you believe support your dispute. 

This could include a claim history if you haven’t made any claims, documents showing a stable credit score, or evidence that your risk profile has not changed significantly. The more concrete evidence you have, the stronger your case will be.

Step 3: Begin Drafting Your Letter

Header
Your letter should be written in a formal, business-letter format. Start with your name and address at the top left corner, followed by the date. Then write the insurance company’s name and address.

For example:
[Your Name]
[Your Address]
[City, State, Zip]

[Date]

[Insurance Company’s Name]
[Insurance Company’s Address]
[City, State, Zip]

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Salutation

Address the letter to a specific person if possible – such as your account manager. If you don’t know who to address it to, “Dear Sir/Madam,” or “To Whom It May Concern” will suffice.

Body of the Letter

Begin the letter by identifying your policy and stating the purpose of your letter. For instance, you might start with:

“I am writing to dispute the recent increase in my insurance premium for policy number [Your Policy Number]. According to the renewal notice received on [Date], my premium will increase from [Old Premium] to [New Premium]. I believe this increase is unwarranted for the following reasons…”

Now, explain why you dispute the increase. Use facts and figures, referring to the documents you have gathered. Be clear and concise, sticking to relevant information.

End the body by requesting a review and a timely response. For example:

“I kindly request that you review the circumstances surrounding my premium increase and provide a detailed explanation as to its justification. I would appreciate your response within 14 business days.”

Closure and Signature

End the letter professionally with “Yours faithfully” or “Sincerely,” followed by your printed name and signature.

Enclosures
If you’re sending physical copies of supporting documents, mention this at the end of the letter with the word “Enclosure.” If you’re sending the documents digitally, you can write “Attached” instead.

Step 4: Send Your Letter
Send your letter by certified mail with a return receipt requested. This way, you will have evidence that the insurance company received your letter. Keep a copy of everything you send for your records.

Step 5: Follow Up

If you don’t hear back within the timeline requested, follow up with a phone call or email. Make sure to keep a record of all communications for future reference.

Remember, while your insurance company has the right to adjust premiums, you also have the right to question and understand those changes. 

Writing a dispute letter may not guarantee a reversal of the increase, but it’s an important step in ensuring transparency and fairness in your insurance coverage.

Sample Letter for Disputing Insurance Premium Increase

[Your Name]
[Your Address]
[City, State, Zip]

[Date]

[Insurance Company’s Name]
[Insurance Company’s Address]
[City, State, Zip]

Dear [Insurance Company’s Representative’s Name],

I am writing concerning the recent increase in my insurance premium for policy number [Your Policy Number]. As per the renewal notice received on [Date], my premium is set to increase from [Old Premium] to [New Premium].

This increase came as a surprise to me, especially since my risk profile has not significantly changed since the inception of my policy. I have maintained a clean claim history and my credit score remains stable.

Attached, please find copies of [mention the supporting documents that you’re including such as claim history, credit reports, etc.] that validate my points. I believe that these documents show no justification for the premium increase.

I respectfully request a thorough review of the factors that led to this increase and ask for a detailed explanation regarding the decision. If an error has occurred, I would appreciate your prompt attention in rectifying this issue and adjusting my premium back to its original or a justified rate.

I understand that insurance premium rates are subject to change, however, I believe that customers have a right to a transparent and fair adjustment process. I hope that you will take this into consideration and ensure that the process remains as such.

I look forward to your response within 14 business days. Should you need additional information to assist your review, please do not hesitate to contact me.

Thank you for your attention to this matter.

Yours faithfully,

[Your Signature]
[Your Name Printed]

Enclosures: [List of all enclosed documents]

Frequently Asked Questions (FAQs)

Q: What is a letter for disputing insurance premium increase?

Answer: A letter for disputing an insurance premium increase is a formal communication addressed to your insurance provider, objecting to a rise in your premium costs. 

The letter articulates your concerns, presents reasons why you believe the increase is unjustified, and requests a review of your policy and its associated costs. It can also include any relevant documentation to support your case.

Q: When should I write a letter for disputing an insurance premium increase?

Answer: You should write a letter for disputing an insurance premium increase as soon as you receive notice of the increase and after you’ve confirmed the reason for the increase. 

If you believe the reasons provided are unjustified or erroneous, it is appropriate to dispute the increase formally in writing.

Q: How can I make my letter for disputing an insurance premium increase more effective?

Answer: To make your letter for disputing an insurance premium increase more effective, clearly state the purpose of your letter, explain why you believe the increase is unjustified, and provide supporting evidence where possible. 

Be concise and professional, and ensure your letter includes all relevant details such as your policy number and the date of the increase notice. Also, request a specific timeline for a response to encourage prompt action.

Q: Can a letter for disputing an insurance premium increase guarantee that my premium won’t increase?

Answer: No, a letter for disputing an insurance premium increase doesn’t guarantee that your premium won’t increase. 

Premiums are subject to a variety of factors including your personal risk profile, the company’s overall loss experience, and broader market trends. 

However, the letter can prompt a review of your individual situation and might lead to a reconsideration if the increase is found to be unjustified.

Q: What should I do if I don’t get a response after sending the letter for disputing an insurance premium increase?

Answer: If you do not receive a response within the timeline you’ve requested, you should follow up with your insurance provider. This can be done via phone call, email, or another letter. 

Keep a record of all your communications. If you’re still dissatisfied with the response, consider seeking advice from a legal professional or your state’s insurance regulatory body.

Q: How do I deliver my letter for disputing an insurance premium increase?

Answer: The letter for disputing an insurance premium increase should be sent via certified mail with a return receipt requested. This ensures that the insurance company receives your letter and you have proof of its delivery. 

Alternatively, you can deliver it in person or via email, depending on the communication preferences of your insurance company. Always retain a copy for your records.