Policy

  • When do changes to my policy go into effect?

    Changes will go into effect immediately. 

  • Why did my rate increase?

    Rate increases are always frustrating. We don’t like them, you don’t like them, but they are a reality in insurance. At Pact our goal is provide the fairest possible price to our customers for the longest possible time. Sometimes that means tweaks to our rates so we can keep the lights on. We’d like to break down the possible causes of of rate changes.

    Something we did
    Pact is the first digital, instant car insurance you can Pause, and we are proud to offer policyholders customized coverage that you control. And as part of being a first-of-its-kind business, this means new learnings and lessons.

    The policy management features Pact offers, from instant purchases, to unlimited policy endorsements, to Pausing driving coverages on policies, have never been included in how insurance companies calculate rates. We’re pumped about frequent user engagement with our app and coverage, and that is providing insight into how we may need to adjust feature offerings and policy prices.

    We are proud to be the only car insurance company that provides you with absolute control over what you pay. It took a once-in-a-century pandemic for other insurance companies to provide a one-time refund back to their customers. Pact lets you do that every day with Pause. And with unlimited instant, free endorsements, in-app towing and claims, and build-your-own-policy functionality, Pact will always strive to put you in the drivers seat of your car insurance.

    Something you did
    Pact relies heavily on the information in your application to determine your rates. Using your states driving records, we are able to verify information you provide. If we find that you left something out or misreported something, we’ll update on our end and that may effect your rates.

    Your driver history is also used by auto insurance companies to set rates. If you get into an accident or commit a violation during your Pact term, that will likely change your rates. On the flip side, a continued clean driving record will likely result in rate decreases.

    Something else
    While less common, there are things outside of both of our control that can effect rates. These include changes in the cost of vehicle repair, increased likelihood of extreme weather or natural disaster, and increased frequency of accidents in your area.

  • Where is my insurance card?

    To access your insurance card, tap the “Card” tab at the bottom of the Pact app. If you would like to share or print your card, access your Insurance Card on the app and click on the vertical ellipses on the top right of the screen.

  • How do I change my payment method?

    To update your payment method, go to “Payments & billing” under the main menu and tap "Edit".

  • I linked my bank account. How do I know my payment was successful?

    Your policy is active as long as we receive payment. It may take up to 6 days to process and confirm your payment.

    Please note you must maintain a bank account balance greater than the downpayment until payment clears. This is important! If payment fails due in insufficient funds, we'll have to cancel your policy.

  • I just purchased a monthly policy. Why is my next payment only a few weeks away?

    We like to keep things straightforward at Pact. If we have payment for your insurance, you're covered.

    For the second month's bill, we charge a couple weeks after the start of the policy. That's an effort to avoid unpaid coverages, which add costs we'd have to pass on to policyholders. We chose a simpler process, meaning cheaper premiums for you!

    So, make sure your payment method is good to go on the billing dates. You're not being double-charged, and after this payment, you'll be billed on a monthly schedule for the duration of your policy.

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