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Auto wrecked after insurance cancelled

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G

glad2balive

Guest
What is the name of your state? Texas

We have (had?) an auto policy on a financed vehicle, paid monthly. Last due date was 11-21. Last payment mailed 11-20.
Cancellation notice received on 11-28,which we disregarded because we knew payment had been mailed.
On December 13...22 days after mailing the payment....21 days after the insurance due date...we were involved in a terrifying wreck. No other vehicles were involved, but ours seems to be a total loss. 2 days later, on December 15th, we received notice that our insurance had been cancelled, and payment returned. According to the paper, it was returned because payment was "received more than 10 days past the due date". I know that there is no way that it was actually received in the office more than 10 days past the due date, However I don't doubt that it was that long before it was processed. I desperately wish that I had the envelope the payment was mailed in, with the postmark....or any other way to prove that it had to have been in their possession before that. Do we have any recourse whatsoever? I am not trying to get something for nothing....it's not as if we wrecked our vehicle and then tried to hurry up and pay our insurance premium. We made the payment in good faith, over 3 weeks before the accident occurred...and had no idea that they had supposedly received it too late.
 


JETX

Senior Member
"had no idea that they had supposedly received it too late."
*** Yes you did. Your own post says that you mailed it ONE day before the final due date.... and you knew that it wasn't going to get into their hands before it was overdue. Therefore, they did NOT get timely payment.

"Do we have any recourse whatsoever?"
*** You might try to contact the Texas Insurance Commission to see if they were required to give you written notice prior to cancellation. If not, your payment was clearly received AFTER the due date. Live on the edge, die on the edge.
 
Discuss what occurred with your agent. Ask him to report the claim with an explanation of what transpired. Request that the company conduct a "coverage investigation."

Depending on your track record with your company, i.e. your payment history, they might decide to extend coverage. If you have faithfully paid your premiums, never bounced checks, never let your policy lapse, etc. they may decide that because you mailed your check the day before your premium was due and believed you had coverage, they will go ahead and cover your loss. If, on the other hand, your policy has been in and out of force numerous times due to late payments, you are probably out of luck.

If you car is financed and the lienholder information is on record with your company, your insurance company is required to notify the lienholder of the cancellation and typically with advance notice, thus protecting the lienholder's interest and giving the lienholder opportunity to place insurance for comp and collision on the vehicle. While you may be out of luck, your lienholder may still be able to recover from your carrier.

Good luck.
 

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