Was quoted a rate which was agreed on and paid for in full proof of insurance was sent to my bank and car dealership. However, l had to back out of picking up my new car on sunday because l got a call from my insurance company late friday night with the end result of a new rate was 132% more than the negotiated rate the night before.

no. if you have paid in full they cannot then change the rate.

the only possible reason they can do this, is if there is a change in the risk (eg. the vehicle or driver being insured)

no its paid in full

From the information you have provided it is seen that you have paid the amount in full and a proof was send to the car dealer for the new car. The proof is not an insurance policy. So if the policy is not issued they can technically say like this. Morally it is bad. If possible find some other insurer and make a bargain.

It seems that the initial quote was based on the information they had at the time. If they found additional information, they can adjust the rate with the risk that they r taking. For instance, if they found a ticket or previous claim from a few years ago that u forgot about, or a credit report shows something negative. If the neighborhood that the car will be parked in is a hazard or u will be allowing poor risk drivers to drive the car. Even if u have a poor risk driver living with u they can raise the rate. Contact the agent, see why the rate went up & eliminate the risk factors!

Yes. That quote is based on the information u provide, & is subject to change if u misrepresented ur credit score, driving history, or people in ur household.

Car insurance rates r not ''negotiated''. They're filed with the state insurance commissioner.

No doubt, the initial quote has been revised because 1. u had no prior coverage 2. ur credit score was not that high or 3. there were additional drivers or driving issues.

It is ALWAYS subject to VERIFICATION of the information u provided them.

YES.
When u get a quote for ur auto insurance, it is ONLY a quote, & subject to underwriting. You obviously need to pay in order to start coverage, but the rate shouldnt change unless there r points on yours or another drivers record which wasnt disclosed.
Now, if ur agent made a mistake in the quoting & rated u in a way which he shouldnt have, then during the underwriting process, this could change ur rate. You need to ask the agent WHY the rate changed, & get a valid explanation.
There is not much that can be done at this time. You need to either keep that policy at a higher rate, or switch to another company & get ur money refunded for the time that u havent used it.

If u purchased it from Farmers Insurance company than yes. It happened to me too. The Agent told me that l misrepresented my driving record ( l completely forgot about $200 claim that l had 5 years prior to that) & refused to honor the original price even when l reminded him that l specifically asked to confirm that the price was ''final'' before l gave him the check. Some Farmers Agents do not want to run ur driving record (they r charged for it by the company) & wait till underwriters do it. l spoke to regional management & they refused to honor it as well. As far as l know 5-year old claim for such a small amount should not have been even considered. l also heard from another Farmers Agent that their pricing fluctuates on daily basis & not guaranteed till policy is issued even if nothing new was discovered by the underwriter. Definitely ask about the reason for the increase, request so called ''letter of experience'' & if they r giving u a bogus reason complain to the State Insurance Commissioner