What is Twisting Insurance?

What is Twisting Insurance?

Definition of Twisting

In Rule, insurance services are provided by a company. If a consumer goes to that company seeking insurance coverage for a particular reason, he/she is required to file a claim and an insurance company is required to provide that coverage within 30 days. Such claims may involve a difference of opinion on which policy is best. The consumer has the right to choose his/her coverage and therefore a consumer has the right to choose to file a claim and/or change his/her coverage, whichever is necessary.

Therefore, a consumer may want to change his/her coverage or claim, or any combination thereof, from one insurer to another. A consumer may agree to provide coverage under another insurance company without paying the price agreed with the previous insurer.

Why You Should Know About Twisting

Twisting generally happens during an insurance renewal process when insurers make changes to their pricing structure. If you pay your premium on time, then you are subject to the new rate, which could change any time during the renewal process. When you discover this, you can correct the error by requesting to change to a lower premium and starting the process all over again. However, if you do not pay your premium on time, you run the risk of being subject to the new rate.

Insurers often base their rate changes on a variety of factors, including your past premium history and current medical costs. They might also base them on some imaginary notion of the risk in the neighborhood in which you live, or on a couple of different variables that seem appropriate to them.

How to Avoid Twisting

The best way to avoid twisting is to get in touch with your agent right away if you are receiving multiple letters from different insurance companies claiming that you are canceling your coverage. Insurers are allowed to notify policyholders of their right to cancel their coverage if they have been convicted of a crime or become the victim of fraud. It is always a good idea to let your agent know if you receive a notification from any insurance company other than the one that you are currently insured with.

Also, it is always a good idea to get in touch with your insurance company and ask them for clarification on any claim.


The US consumer should be able to trust the protection that a car loan and insurance policy provide. Simply put, the car loan should only provide protection to the extent that the consumer agrees to it. If the consumer does not agree, the purchase or renewal of the loan or insurance contract should not be required, nor should any additional premiums or other charges for any of the coverage added.

Car loans are subject to liens and repossessions, and sometimes, modification (in some states, any modification can result in the car being repossessed), so the consumer needs to be given the necessary protections to maintain their credit. Unfortunately, that often means additional premiums and cost, since a consumer has agreed to an unlimited coverage, no limit, “no questions asked” policy.

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