Complaints

This profile includes complaints for Preferred Mutual Insurance Company's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  Preferred Mutual Insurance Company

  1 Preferred Way New Berlin, NY 13411-1800

  
• 

  Preferred Mutual Insurance Company

  19 E Main St # 21 Norwich, NY 13815-1835

  

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:05/28/2025

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have signed the needed cancellation form for renter's insurance through Preferred Mutual. I sent it the same day I cancelled my car insurance. This occurred in November. They have continued to tell me I didn't cancel this plan and they didn't receive it even though both cancellation forms were sent by the same person at the same time. They are continuing to charge me for this monthly, and I have already had the forms resent and have sent along screenshots of email correspondence proving to them I've signed the necessary forms. My last email was not responded to because I threatened to file a complaint.

  Business Response

  Date: 05/29/2025

  Hello BBB team,
  I am responding to the complaint ID ******** that Lou Ann sent to ******* ****** at Preferred Mutual on 5/28/25, regarding a renter's policy that Amanda Ventura (Spinelli) has with Preferred Mutual.  
  The customer had an auto insurance policy and a renter's insurance policy with Preferred Mutual, both written through the same agency.  In November 2024, our company received a request to cancel the auto insurance policy, but we never received a request to cancel the renter's policy.  From our internal records I can see that the policyholder contacted us three times to inquire about the renter's policy, and our representative relayed that we had not received a request for the renter's policy, so it was still active.
  After reviewing our documents between auto policy and renter's policy, and the documents included with the complaint, it appears that when the customer asked the agent to resent the request for the renter's policy, the agent continued to send over cancel request related only to the auto policy.  We do require a signed policy release for each respective policy as part of our standard procedures.
  What are we doing about this?   I have authorized an accommodation to have the renter's policy cancelled back to November 2024 without any additional documentation from the customer or the agent; the customer's intent is clear, and this is the appropriate resolution.  I have sent an e-mail to the customer to outline this resolution and to check on the best address (the policy has a different address than the address on the complaint).  
  Best,
  Jeff ******
  
  Live Assured isn’t just a tagline; it’s our promise that even during times of uncertainty,
  Preferred Mutual’s promise will always be protecting what matters to you!
  
  Jeff ******
  Operations Manager, Business Services
  One Preferred Way ¦ New Berlin, NY 13411
  ** ************
  **********************************

  Customer Answer

  Date: 05/29/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  ****** *******
  
  
  
  
  
  
  
  
  

• Initial Complaint

  Date:05/14/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Under MA General Law 140 Sec. 28A the law prohibits an uncharge on a credit card transaction. The company has failed to adjust this and a billing installment fee when the account should have been paid in full. Not installments. Rude little punk kids in the call center 2 calls and 2 reps,-, failed to handle or adjust the bill. Elizabeth was the last person spoken to who refused to assist. I will the pay the $522 to pay the bill in full. or we can terminate the business relationship. My credit card bill shows $205.98 on 2/7/25, yet the bill reflects $200.00 payment on 2/7/25. I was told they charge a 2.99% processing fee, again this is against MGLA 140, Sec 28A. The billing fee is also showing, this policy should have been paid in full.

  Business Response

  Date: 05/27/2025

  We are in receipt of your complaint to the Better Business Bureau, attached as Exhibit A(the “Complaint”). In your complaint you state that your policy should have been on anannual pay plan. Your pay plan is currently set to quarterly, but if you would like to changeyour policy to annual billing, you may do so by contacting your Agent. You may also changeyour payment method to EFT through Auto Pay to avoid service fees, by completing theAuthorization for Auto Pay form attached as Exhibit B. In addition, we have waived theremaining service fee balance of $6 on your account.You also allege in the complaint that One Inc is in violation of MGLA 140, Sec 28A.bycharging a 2.99% fee.As you know, in order to make a payment by card, you must use the One Inc paymentplatform and they charge a 2.99% platform fee for the use of their site.Mass. General Laws Ch. 140D, § 28A, regulate surcharges by merchants, and states inrelevant part:Section 28A. (a)(1) With respect to a credit card which may be used for extensions ofcredit in sales transactions in which the seller is a person other than the card issuer,the card issuer may not, by contract or otherwise, prohibit any such seller fromo??ering a discount to a cardholder to induce the cardholder to pay cash, check orsimilar means rather than use a credit card.(2) No seller in any sales transaction may impose a surcharge on a cardholder whoelects to use a credit card in lieu of payment by cash, check or similar means.”Massachusetts O??ice of Consumer A??airs and Business Regulation announced a thirdpartypayment processor exception to Mass. General Laws Ch. 140D, § 28A in a letter datedApril 12, 2022, a copy of which is attached hereto as Exhibit C (the “Department Letter”),which states in pertinent part:“As such, it remains the position of the Division that “convenience fees” or“processing fees” for consumer payments may only be charged under M. G. L. c.255D if the fee is administered in accordance with the following criteria:1. The licensee utilizes a third-party payment processor for the processingof the payment;2. The consumer has the choice as to whether to make the payment throughthe third-party service provider and must be able to avoid theconvenience fee or processing fee by making the payment to the licenseeby another method;3. Any additional costs, including the processing fee or convenience fee,that are associated with processing the payment by the third-partyservice provider are paid to or passed through to the third-party serviceprovider;4. The third-party servicer provider is a completely independent companywith no other relationship to the licensee;5. Neither the licensee nor any of its employees or a??iliates may receive anydirect or indirect compensation or consideration – in any form – from thethird-party service provider or any other party;6. Neither the licensee nor its employees have any relationship with thethird-party servicer provider or any a??iliate, subsidiary, or related party;and;7. The amount of any fee would need to be clearly disclosed to theconsumer prior to the consumer’s selection of the payment method andbefore any such fee is charged. For consumers making a payment bytelephone, the licensee must ensure that the fee is disclosed verballyover the phone prior to the consumer being charged. Likewise, forconsumers making payments via a website, the fee must be clearlydisclosed to the consumer electronically as part of the payment process.”(numbers added).The One Inc model complies with the third-party payment processor requirements set forthin the Letter as follows:1. One Inc is a third party payment processor that is utilized for all cardpayments;2. The consumer (insured) does have a choice as to whether to make thepayment through One Inc as they can still mail in a check payment ormake an ACH payment;3. One Inc pays interchange and any other costs and the paymentprocessing fee is passed through to One Inc as a third party paymentprovider;4. One Inc is a completely independent third-party service provider andother than payment processing as a third-party service provider has noother relationship with Preferred Mutual;5. Neither Preferred Mutual nor its employes receive any direct or indirectcompensation or consideration – in any form – from the third-partyservice provider or any other party;6. Neither Preferred Mutal nor its employees have any relationship with theOne Inc or any a??iliate, subsidiary, or related party; and7. The payment service fee collected by One Inc is clearly disclosed to theconsumer (insured) prior to the consumer’s selection of the paymentmethod and before any such fee is charged. For consumers making apayment by telephone, Preferred Mutual informs the insured that they areusing the One Inc payment platform and One Inc charges a fee for thisservice prior to the consumer being charged. Likewise, for consumersmaking payments via a website, the fee is clearly disclosed to theconsumer electronically as part of the payment process.Preferred Mutual and One Inc are in compliance with Mass. General Laws Ch. 140D, § 28Aby utilizing the third-party exemption as set forth in the Department Letter.Please let us know if you have an questions or comments.Sincerely,Sara C*******Accounting Manager

  Customer Answer

  Date: 05/29/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  The Company has failed to refund the Credit card fee; $5.98  Exhibit "C" is nothing but smoke and mirrors; The ** **** ************ LLC. has zero relation to Preferred Mutual Ins, CO. The letter submitted is only an opinion from a 2022 date, with out particulars outlined, furthermore, I doubt that the 7 prongs would be met that Preferred Mutual nor it's employees receive any direct or indirect compensation by charging consumers a fee for credit card / debit card transactions. it's clear that the customer is stuck paying for this "fee". The parts of this letter are altered and cloudy. The letter goes on to claim that a $10.00 phone payment fee is not allowed. This is not the case here, and goes onto fact patterns which vary from stated above may result a different position from the Division Of Banks. Our position remains the same. and expect the refund of said fee. $5.98.  Regards,
  
  ****** ******* 

• Initial Complaint

  Date:01/20/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I was involved in an MVA in which one of Preffered Mutual’s clients hit me and left the scene of the accident. I submitted an invoice for reimbursement for rental fees and have not been paid. I’ve contacted the insurance company on many occasions via phone and email with no response. I would like my reimbursement asap.
  
  Claim Number: ******** Adjuster: Kenneth R***** Phone: ***********
  Email: **************************

  Business Response

  Date: 02/14/2025

  Dear BBB Investigator,Our claims team processed a check for the amount $227.57 on 1/27/2025 and we show the check was processed/cashed on 2/4/2025.Check number ********.We believe this resolves this complaint. Regards,Brendon H*****

• Initial Complaint

  Date:09/23/2024

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I used a Credit Card to pay my insurance premium and they charged me a fee of $44.71 for using my credit card. It is against the law in NY to charge a fee for the use of a credit card to pay premiums. NY General Business Law 518.

  Business Response

  Date: 10/02/2024

  Dear Better Business Bureau:
  We are in receipt of the complaint submitted to the Better Business Bureau by ******** ******** on September
  23, 2024, a copy of which is attached hereto for your reference as Exhibit A.
  As Ms. ******** points out, New York General Business Law Section 518, as amended, governs surcharges in
  New York and states in pertinent part:
  “Any seller in any sales transaction imposing a surcharge on a customer who elects to use a credit card in
  lieu of payment by cash, check, or similar means shall clearly and conspicuously post the total price for
  using a credit card in such transaction, inclusive of surcharge.” Emphasis added.
  In order to allow Preferred Mutual’s policyholders to be able to make premium payments using their debit and
  credit cards, Preferred Mutual has engaged a third-party payment *********, *** Inc, to process such payments.
  In order to make credit or debit card payment to Preferred Mutual, payers must utilize the *** Inc digital payment
  platform. *** Inc charges a processing (or platform) fee to cover its costs associated with processing the
  payment and the use of its payment processing platform. This is similar to how ******* ***** charges a fee in
  order to make a payment at their physical store. Since this charge is for the use of *** Inc’s digital assets and
  system, *** Inc is not a “seller” for the purposes of Section 518 and is not imposing a “surcharge” on a
  cardholder; rather, it is charging for a distinct service, the making of payments by electronic means. It is also
  important to note that *** Inc is not acting as an agent of Preferred Mutual, and Preferred Mutual receives no
  portion of the payment service fee from *** Inc. This interpretation has been agreed with by the New York
  Department of Financial Services (“DFS”) in a private letter ruling attached hereto as Exhibit B.
  Even if it were deemed that *** Inc is a “seller” and charging a “surcharge”, *** Inc’s system complies with the
  notice requirements as set forth in Section 518. *** Inc’s digital payment platform does not display a percentage
  but rather displays the total cost of the transaction including the payment service fee in a dollar amount, which is
  in compliance with the notice requirements of Section 518.
  Based on the above, it is clear that New York Section 518 does not apply to *** Inc’s charging a fee for the use of
  its digital payment platform to enable customers to transact and process card payment. And even if it did, *** Inc
  would be in compliance with notice requirements of Section 518.
  However, as we value Ms. ******** as a customer and in an effort at good customer service, we have asked One
  Inc to return the fee for this *** transaction. *** Inc has agreed to do so. Ms. ******** should receive a refund
  for the fee shortly.
  Please let us know have any questions or additional concerns.
  Sincerely,
  Sara C*******
  Accounting Manager
  ###-###-####
  

  Customer Answer

  Date: 10/02/2024

  Better Business Bureau:
  
  
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  
  
  Regards,
  
  
  
  ******** ********
  
  
  
  
  
  
  
  
  

• Initial Complaint

  Date:01/13/2023

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Received a phone call saying by law my sister who just turned 18 needed to be on MY car insurance even though she would never be driving my car. Her legal address is not even the same as mine yet they added her and changed my auto insurance policy without my permission, increasing my almost paid off policy by $1,000. I tried to dispute it and ended up cancelling my auto insurance through them. There is no law in massachusetts saying I’m required to pay for someone who won’t drive my car and my new auto insurance even thought it was silly. My policy from preferred mutual ran from July 2022 to July 2023 but I pay it 9ish months out of the 12. I have now received a bill from preferred mutual stating I owe them the rest of the money for my policy when I already paid off service I didn’t receive. They should owe me money since I won’t be receiving 6 months of the policy that had $100 left to pay on it. And now they’re sending debt collectors after me, how is this even legal when my new auto insurance policy started 12/6/22

  Business Response

  Date: 02/02/2023

   ear Ms.
  *****,This
  letter is in reply to your request for a refund on your automobile policy.After we
  requested information on a possible operator of your vehicle, your agency sent
  in an endorsement to add ****** ***** as an occasional operator on your policy
  to be effective 10/20/2022.As a
  result, we will not be providing a remittance of premium at this time.  However, if you can provide documented
  support that ****** was a rated operator on a policy elsewhere at the time we
  received the endorsement request from your agent, we will be more than happy to
  amend our policy rating.  I hope
  this letter finds you well.  We
  appreciate your business and wish you well going forward.  Sincerely,Christopher
  M. C**** Underwriting
  Manager – Personal Lines