Legal Question in Insurance Law in Arizona

possible breach of contract

I have recently bought auto insurace from an insurance group. They entered my info into their computer wrong and quoted me a price for full coverage. We agreed upon that price and signed a contract agreeing to that monthly ammount. Now they want to increase our rates because of their mistake. I would think since that we signed a contract, that is binding, and they would be responsible for the difference. Please let me know. Thank you


Asked on 12/15/06, 1:26 pm

1 Answer from Attorneys
James Jenkins Jenkins Law Center PLC

Re: possible breach of contract

Without knowing more facts of this case, I would agree with you. Unilateral mistake (one party makes a mistake) is generally not grounds for setting aside a contract. Mutual mistake (both parties are mistaken about a material fact) may be grounds to set aside the contract. Insurance companies are sophisticated companies, consumers are often at their mercy. Looks like they need to honor the contract or are guilty of breach and bad faith as well.

Read more
Answered on 12/15/06, 11:40 pm


Related Questions & Answers

More Insurance Law questions and answers in Arizona