i have insurance

[LLong]

i have insurance. I was in an accident November,2000. My insurance premium was due that same day. Since it wasn't paid by that day, the insurance company is saying my policy was lapsed and therefore i'm not covered for the accident. I was unable to pay on time because my job pays on the ninth, premium was due the second. I have never been late on a payment before, and have been with this company for nearly three years, and am stil making appropriate payments. I have received a collections notice from the other party's insurance co. for damages. Can I pursuade my co. to pay the damages?

 

[dj1]

The policy lapses at 12:01 AM on that day, if you had an accident at 12:02 am you have no insurance coverage.

You took a risk and you lost.You could have paid by credit card, all insurance companies take them.

... Now this is strange they still are accepiting your payments, then how can they claim you dont have coverage?

What does your new policy say is your starting date?

Are you saying you policy lapsed on Nov 2nd at 12:01 AM, and the new policy starts on Nov 3, at 12:01 AM?

If so that would be Illegal!


[Edited by dj1 on 03-02-2001 at 11:47 PM]

 

[LLong]

Thank you for replying. My policy was in lapse from Nov. 2 at 12:01am, until Nov. 6 at 8:25 am. This was when I made the first of three payments to the Co. The 2nd was Dec. 10, the last payment was made Feb. 7. All were, of course, on time.

 

[dj1]

Did they send you a new policy that states that your coverage starts at 8:25 AM Nov 6th, or any letters to that effect..

Because it would make sense that if the policy lapsed, they would have cancelled you, and not allow you to pay.

And Also they probably would have raised you premiums too, since it would be considered a new policy and not a renewal..

What i am getting at is they assumed it was a renewal and it took effect on Nov 2 not on the 6th. And the office people who you paid.. credited you account for the 4 days to prove your were covered.

They didnt deduct the 4 days premiums from what you owe Right?

 

[LLong]

Yes. They sent me a new policy with Nov. 6 as the new start date. They did not cancel me, nor did they raise my premiums. I paid the same amount I was required to pay each time I paid. They even continued to send me reminder notices about these payments. What can I do to clear this up?

 

[Juan Rodriguez]

OK, let's get some terms correct. If the policy lapses that means that it "expired" and was not renewed. Auto policies are normaly sold in 6 and 12 month increments although there are some 3 month policies.

When a policy cancels it means that either the carrier or the premium finance company asked for the cancelation for what ever reason. They must issue an intent to cancel, usually 45 days out. They are required to maintain a proof of mailing and a reason has to be stated. If it was canceled due to their error then they should re-instate the policy and cover the loss.

If the policy was cancelled due to the policy holders fault it is the carriers discretion to re-instate the policy. If you had no losses during the time the policy was cancelled then they will re-instate back to the time and date of cancelation and ask you to sign a "no loss statement." If you have a loss the policy can be re-instated at whatever date the carrier of PFC is paid.

You can contact your state's insurance commissioner and they can get a determination on as to what happened.

 

[dj1]

Look in your phone book in the blue pages for the state insurance commisioner in your state capital, and ask him this question....

It seems like the insurance company did what anyone else would have done, ended your coverage on a certain day and time, and restarted it when you paid the bill.

There usually is a section that says there is NO grace period to pay for a renewal, but you must read your insurance policy very very carefully. If this was over a holiday weekend or a major snowstorm/hurricane/tornado/ power outage etc. where the business was closed, then they would have had to cover you for the 4 days....

 

[youngjb]

You need to check your policy regarding payment and grace period extensions. Although most insurers will tell you there is a grace period, when it's to their advantage, this information should be in your policy. From personal experience grace periods, although not mandated, range from 5 days to 30 days. Good luck.