• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Policy cancellation and lapse of ins. fines...

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

gold1234

Junior Member
What is the name of your state? New York

On December 2, 2005 I went into my insurace agents office and paid the bill. It was late butI could do nothing about it. The check was presented at my bank and unfortunatley due to an ATM error in trasferring money, the bank did not honor the check. I have proof of the mistake the bank made.

I called the insurace office and told them what happened and then went in the next day to pay the bill in cash. This was about the 14th. 10 minutes after leaving I was called by the insurace office and told that the policy was terminated and I would have to come back and pick up the money. I immediatly went out and obtained new insurance effective as of the 16th of December.

A day or so later, I received a letter from The NY State DMV stating that my original carrier cancelled the policy as of 12:01 AM, 11/18/05 and that I need to supply proof of insurance regarding the 28 days in between. I told them that I had no insurance during that time period because I was never notified that my insurance was cancelled as of the 18th. I was told about it on the 14th and immediatly resolved the issue.

Now I am being held responsible for the 8 dollar fine, per day,per car ( ther are two involved on the policy) and the insurance company says that they aren't responsible because I didn't pay the bill.

I understand that the cancellation date is the renewal date but can the insurance company cancel a policy as of a past date? Be aware that I received a refund check from them for monies received from premiums that were not used based on the cacellation date. My payments are made ahead of the time they are paying for.

I can see how I might be responsible for the fines incurred for the 2 days it took me to find insurance but how can I be responsible for the time it was cancelled that i was never notified of?
 


RachelB82

Junior Member
if you have the refund checks you should make copies. also, if you at any time received a letter or anything stating the active dates (ie: coverage from blank to blank) that contradicted what they said, then you have a good case. if it is just your word against theirs, they are likely to win. i would have thought they would be req'd to send you a notification that you were going to be cancelled in advance of the cancellation...i would read your policy and find out, and if that's the case i would call your agent at the time and complain.
 

gold1234

Junior Member
I am aware that insurance companies are required to give at least 10 days notice befor canceling an auto policy. The agent is claiming that the bills I receive state that if payment is not received, then the policy will be cancelled.

I guess i was hoping that since the money I pay is for the upcoming policy period, they are required to maintain it for at least as long as the amount of time I have paid for already. They picked a date almost 4 weeks in the past. The amount of the refund was $120.00, but the fines I have incurred as a result of the cancellation date are almost $500.00.
 

racer72

Senior Member
gold1234 said:
I am aware that insurance companies are required to give at least 10 days notice befor canceling an auto policy.
And where exactly did you find this bit of misinformation? Insurance companies can and do cancel policies the minute the premiums are not made and it is not up to the insurance companies to notify the customers that the payments are due, it is up to the customer to pay their bill on time. Your insurance company is correct, you have been uninsured since the 18th of Novermber, any claims made after that time would have been denied. Read the small print in the policy, it is all spelled out in there for you to read.
 

MandyD

Member
gold1234 said:
I am aware that insurance companies are required to give at least 10 days notice befor canceling an auto policy. The agent is claiming that the bills I receive state that if payment is not received, then the policy will be cancelled.

QUOTE]

You are incorrect. New York State has no law requiring notification. However, your insurance company man choose to include that in their coverage. If they do, it will be spelled out for you in your policy and they must then adhere to it.

Judging from what your agent is telling you, it appears you're SOL.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top