Auto Insurance Claims: Auto insurance company forgot to send invoices for part of last year, state insurance commissioners, auto insurance company

Question
My son's auto insurance company called him today and told him that they forgot to bill him for part of last year's auto policy.  The total amount that they failed to bill for was $3,500.  They want him to pay it this year and add it to his new premium.  It's an unfortunate expensive mistake made by the insurance company and I was wondering if my son is responsible to pay for it?  Any suggestions?  If he doesn't pay it, cancels his policy and goes elsewhere for insurance, what would be the consequences?

Answer
Hi Carla,

To the best of my knowledge, an insurance company only has 30 or 60 days after you purchase a policy to accept or deny your application, change the premium or make any other changes based on underwriting guidelines. I have never heard of a company making a $3,500.00 mistake and trying to collect it a year later.

I would suggest that you contact your state insurance commissioners office to see if they are even allowed to do this. If they are I would suggest finding a new insurance company.

I hope this helps
Richard Hixenbaugh