No insurance-Auto Accident

[jenifrmac]

What is the name of your state?What is the name of your state? pa
I have a co-worker who is very distraught over an accident, and I thought that I could get some info for her. She rear ended another vehicle on a Thursday. No one was hurt, she called her insurance agent on the spot. They told her to call the insurance company and report the accident. She did that. No police report was filed, minor damage. Her insurance company called on Monday to tell her that her insurance had lapsed and that she had no coverage. She has always had insurance and had no idea that her policy had expired. No cancellation notice, no phone call from her agent, they did not even tell her she lapsed when she reported the claim, nothing letting her know that she was expired. She had the same agent for over 10 years and has car, home and life insur through them. She was told that she has to deal with the other guy's insurance company who, of course, will expect payment from her. She has contacted this insurance company with very little response, they are not telling her anything regarding the claim. She is not sleeping thinking that he may claim that he was injured, maybe lose her home or drivers licence. She would just like to know what can happen, what is likely to happen, and how should she handle it. Is there a time frame, it has been over a month now, and the man's insurance will not tell her anything.
Any help would be appreciated.
Thanks.

[InsuranceLadyAZ]

Originally Posted by jenifrmac

What is the name of your state?What is the name of your state? pa
I have a co-worker who is very distraught over an accident, and I thought that I could get some info for her. She rear ended another vehicle on a Thursday. No one was hurt, she called her insurance agent on the spot. They told her to call the insurance company and report the accident. She did that. No police report was filed, minor damage. Her insurance company called on Monday to tell her that her insurance had lapsed and that she had no coverage. She has always had insurance and had no idea that her policy had expired. No cancellation notice, no phone call from her agent, they did not even tell her she lapsed when she reported the claim, nothing letting her know that she was expired. She had the same agent for over 10 years and has car, home and life insur through them. She was told that she has to deal with the other guy's insurance company who, of course, will expect payment from her. She has contacted this insurance company with very little response, they are not telling her anything regarding the claim. She is not sleeping thinking that he may claim that he was injured, maybe lose her home or drivers licence. She would just like to know what can happen, what is likely to happen, and how should she handle it. Is there a time frame, it has been over a month now, and the man's insurance will not tell her anything.
Any help would be appreciated.
Thanks.

My first question is, why did the policy lapse. Did she forget to renew it (most policies auto-renew). Did she miss a payment? She should ask the insurance company to provide her with a copy of the cancellation notice. When a policy cancels for non-pay, 10 days notice is required. If it cancels for any other reason, it's 30 days. Find out those things and post the answers here.

[jenifrmac]

She was cancelled because she missed a payment. She has not contacted her insurance company with regard to a copy of the cancellation notice, but she will. The accident occurred on October 20th, they said that the insurance expired on Sept 27th.

jenifrmac:

You stated:

She had the same agent for over 10 years and has car, home and life insur through them

If she has had the same insurance agent for over 10 years, it seems that she should have been in a routine of paying her insurance. I would think that it is her responsibility to keep track of her bills and not the insurance company's responsibility other than sending a statement with "amount due". Even if let's say....she never received the statement and (hypothetically speaking)....it got lost in the mail. Still.....it is her responsibility to make sure that her bills are paid on time.

I think the insurance company does have the responsibility to notify the insured if they are being cancelled and give them a chance to re-instate the policy, but it would not be retro-active in order to cover the accident that occured while having no insurance.

She should have paid her insurance as she has done for 10 years, she didn't!

She is not sleeping thinking that he may claim that he was injured,

Yes...there is a very good chance that they will claim injuries, and if they do...that is their right to do so. Just because they claim them doesn't make it so, but never-the-less......she (I think) will be responsible for paying property damage and personal injury damages if any out of her own pocket if they decide to sue her.

As for the guy's insurance company not wanting to discuss anything with her directly....I don't think they have any obligation to do so. They will not take any chance of sharing information with her that could possibly damage their case or saying something that she could use against them if this should transpire into something larger.

Tell her to "sit back, wait, possibly up to two years (depending on what the state's period to file a claim is) and start putting money into a saving's account every month, as it is likely that ...she will need it if they decide to sue her.


She had no insurance. That was her responsibility to make sure that she kept her policy up to date, and she didn't!!

Continue to check back to the forum for any updates. Someone will surely be able to give you more factual details that directly relate to the state of PA.

[InsuranceLadyAZ]

Originally Posted by shellandty

jenifrmac:

You stated:



If she has had the same insurance agent for over 10 years, it seems that she should have been in a routine of paying her insurance. I would think that it is her responsibility to keep track of her bills and not the insurance company's responsibility other than sending a statement with "amount due". Even if let's say....she never received the statement and (hypothetically speaking)....it got lost in the mail. Still.....it is her responsibility to make sure that her bills are paid on time.

I think the insurance company does have the responsibility to notify the insured if they are being cancelled and give them a chance to re-instate the policy, but it would not be retro-active in order to cover the accident that occured while having no insurance.

She should have paid her insurance as she has done for 10 years, she didn't!



Yes...there is a very good chance that they will claim injuries, and if they do...that is their right to do so. Just because they claim them doesn't make it so, but never-the-less......she (I think) will be responsible for paying property damage and personal injury damages if any out of her own pocket if they decide to sue her.

As for the guy's insurance company not wanting to discuss anything with her directly....I don't think they have any obligation to do so. They will not take any chance of sharing information with her that could possibly damage their case or saying something that she could use against them if this should transpire into something larger.

Tell her to "sit back, wait, possibly up to two years (depending on what the state's period to file a claim is) and start putting money into a saving's account every month, as it is likely that ...she will need it if they decide to sue her.


She had no insurance. That was her responsibility to make sure that she kept her policy up to date, and she didn't!!

Continue to check back to the forum for any updates. Someone will surely be able to give you more factual details that directly relate to the state of PA.

I was an agent in PA for 5 years prior to relocating to AZ this summer. While PA doesn't require insurers to notify of cancellation due to non-payment, every standard carrier I dealt with provided a provision for 10 days for non-pay. Your friend can check her policy for its cancellation notification clause.

You telling the insured that her friend should have paid her bill doesn't do anyone any good. I'm fairly certain she knows she should have paid her bill. Her only possible out is if the insurer failed to properly notify her. Beyond that, she's going to have to pay out of pocket.

insurancelady:

#1 When you stated: While PA doesn't require insurers to notify of cancellation due to non-payment, every standard carrier I dealt with provided a provision for 10 days for non-pay.....
With my insurance co....I call in my payment over the phone.....There is a recording, which states "If your policy payment is already past due or have been cancelled, payment at this time does not bind coverage until you get a confirmation".

If the bill is due on the 1st of the month and insurance company does not receive payment by midnight of that day, you are not covered if you are in an accident. Now....you may have 10 additional days to make your payment, which will put you back in good standing with the insurance company so as to "not be cancelled", but as for having coverage for those 10 days until payment is made**************I'm not so sure, but curious as to the answer.

#2 You telling the insured that her friend should have paid her bill doesn't do anyone any good

No it didn't do her any good...sorry , but I get sooo tired of people making mistakes and then not owning them and trying to get out of taking responsibility when things go sour. Sorry if I offended you, but I didn't know that I was responding directly to you. I thought I was responding to the OP.

#3 Her only possible out is if the insurer failed to properly notify her. Beyond that, she's going to have to pay out of pocket

That's basically the same thing I said.

I also told the OP: Continue to check back to the forum for any updates. Someone will surely be able to give you more factual details that directly relate to the state of PA.

So...I was trying to be a bit helpful and was not trying to step on anyones toes. Obviously...I stepped on yours. My apologies!

[jenifrmac]

I do appreciate of you taking the time to respond.
I will have her review her policy regarding the terms of cancellation notification on the part of her insurance carrier.

If you knew this woman, you would understand why I am trying to help her. She is one of the nicest, most decent people I know, and she did not intentionaly miss her payment. Did you ever miss a payment on any bill? I know that I have. I do not even want to give her a copy of shellandty's response, she knows that she really messed up.

Can anyone that knows PA laws help out? Here is a copy of the end of my original question, (sorry, I am new to this site and just learning to use it).

She is not sleeping thinking that he may claim that he was injured, maybe lose her home or drivers licence. She would just like to know what can happen, what is likely to happen, and how should she handle it.

Thanks.