I really have a hard time understanding my auto insurance bill/policy. In my case, it's AAA. For example, for 2017 I get the following policy for my car:

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Now, on Dec 12 I add another car to my policy. Now I get a new policy that includes both cars and has updated numbers pro-rated:

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As can be seen, the updated version states an additional premium of 10$.

  • How do you get to this number?? I would have 441 - (400+14) = 27
  • How does this prorating work? For which dates do these numbers state the premiums?

For example, in the original one, the total premium would be 441$ for a year ... from that I conclude 36.75 per month or 1.21 per day.

But for the second one, does the 400$ mean it is the total cost including the old rate from 31.12.2016 to 11.12.2017 and the new rate from 12.12.2018 to 31.12.2018?

Or does it mean it is the new rate converted to a full year?

Or something else?

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    I am confused about the dates. The top bill is for one car for 2018, the bottom bill is for two cars for the last two weeks of 2017. – mhoran_psprep Dec 11 '18 at 11:19
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    The numbers don't add up. It seems like some additional info is missing. Call your agent. – Bob Baerker Dec 11 '18 at 13:44

It looks like the top bill is your original policy renewal bill. The 2nd bill is your adjustment for the rest of the month for the new car. You should get a new bill for your policy renewal, which will likely be in the $900 range. The adjustment on the old car may be a multi-car discount that you qualify for. If you haven't gotten a new renewal bill, call your agent or check online.

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  • In terms of dates, it makes sense that the 2nd bill is the prorated time period but the numbers don't add up. How did you derive a $900 total cost for the new bill? – Bob Baerker Dec 11 '18 at 13:49
  • I suppose an additional car is likely to cost for a full period about the same as the old car. So I'm guessing it will be roughly double of his old policy. – pboss3010 Dec 11 '18 at 13:54
  • Yes this is true -- but what do these numbers MEAN? I understand for the top one: The premium is 441 for 31.12.17-31.12.18 or 441/12 per month. But what about the bottom one? THIS is what I do not understand. It can't be "the adjustment for the rest of the month" because 13.12.2017-31.12.2017 can't cost 400$ for car1. – divB Dec 11 '18 at 19:40
  • And also yes, this is a multi car discount but the total I paid for 2017 was exactly what I wrote: 445.76$ + 10$ = 455.76$. This is indicated on the bottom one as "Total Additional Premium" – divB Dec 11 '18 at 19:43

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