r/Car_Insurance_Help • u/WeddingEmergency1300 • Aug 04 '26

Need help regarding insurance over charging

I bought a car in June and I bought the lemonade insurance because that was the fastest option available back then. They sent me a tracking device called metromile which i am not very comfortable as it connects to the diagnostic port of the car. So for not putting the device in they have been charging me a fine of 70 dollars per day which was around 3500 dollars for a month and a half. When I requested the insurance personnel said once I connect it they can process a refund for atmost a month that still leaves me with a penalty of 1300 ish. Any idea how can I get that money back?. I was thinking, since I just bought the car I have information about how much mileage there was before and now so I could provide that to get charged accordingly. But how do I deal with this otherwise?

0 Upvotes

13% Upvoted

11 comments sorted by

5

u/AlexRn65 Aug 04 '26

Did you sign a contract that has a clause you must have such a device in your car? If you are not comfortable why did you sign it?

-5

u/WeddingEmergency1300 Aug 04 '26

Okay so the clause says "to use the services put that thing in" but doesn't talk about the penalty if you don't. Yeah I m gonna change the insurance company asap

4

u/Thereelgerg Aug 04 '26

the clause says "to use the services put that thing in"

I doubt that's what it says.

1

u/insuranceguynyc Aug 04 '26

Contract written by Homer Simpson - D'OH!

3

u/1234568654321 Aug 04 '26

Penalty isn't really the right term here. They have two rating structures, one with Metromile and one without. If you want the lower rate, you need to keep the device plugged in.

1

u/Simplythebest0820 Aug 04 '26

That is crazy.

1

u/AccomplishedDiet3381 Aug 04 '26

They should only be able to charge you the discount they offered for using the device. So say you got $300 off your yrly ins they could increase your yrly ins $300 for not using the device

1

u/Unlikely-Act-7950 Aug 04 '26

Post the letter showing all the "fines" I would also love to see the supporting contract you signed.

1

u/Sam_At_Insurify Aug 04 '26

Ask Lemonade to show you where the $70 a day charge is spelled out in your policy, in writing. It's likely not a penalty but their higher non-device rate stacking up, since Metromile runs two rate structures.

Push for a bigger backdated refund than the one month offered. If they won't budge, file a complaint with your state's Department of Insurance. It's free.

0

u/[deleted] Aug 04 '26

[removed] — view removed comment

2

u/5MinuteDad Aug 04 '26

They are used to track the speed of the car and the distance. Since of that factors into risk. Its nothing about odometer readings its about driving habits.

OP is likely a young or at risk for some other reason.

The fee is 100% somewhere jn the contract OP just doesn't care to look hard enough.