I received my new auto insurance premium from 21st Century Insurance, and it had increased. I had no recent tickets or accidents, so I called to find out why my premium had increased. I was told that effective January 3, 2007 21st Century's Accident Forgiveness Program was canceled by order of the California Department of Insurance.
I asked why didn't 21st Century send notice to its customers if the cancellation of that program was out of their control? The 21st representative replied "We sent you your new premium bill" as if that would explain everything.
It sounded fishy that the California Department of Insurance would force a company to cancel a program that saved consumers money, so I wrote to them and asked if what 21st Century said was true. 21st Century clearly lied about their reason for discontinuing the Accident Forgiveness program. That is why they didn't send any notification to their customers.
Here is the response from the California Department of Insurance to my question:
File Number: 6257886
Thank you for contacting the California Department of Insurance (CDI). I received your inquiry regarding the Accident Forgiveness Program with 21st Century Insurance Company.
The CDI found 21St Century to be in violation for linking the Persistency Discount program with the Accident Forgiveness Program. The two programs should be separate and not to be linked. It was 21ST Century's decision to discontinue the Accident Forgiveness program entirely. The information given by 21st Century representative was inaccurate.
If we can assist you in the future with an insurance problem or provide information, please contact us though the e-mail system or you may reach the Consumer Communications Bureau at 1-800-927-4357.
Associate Insurance Compliance Officer
California Department of Insurance
Consumer Communications Bureau
Phone: (866) 225-6585, Ext. 6864
FAX: (213) 897-5961
Van Nuys, California