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Two cars, agent entered wrong car for full coveragee

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J

jwhutch

Guest
Colorado, After being involved in an accident, I was contacted by the insurance company to get the claim number and to set up an appointment with an adjustor. During the call, I was informed that the comprehensive coverage was issued for my 1990 Acura, not the 1999 Miata that was involved in the accident. I see a couple of issues: 1) Does the insurance company have to pay the cost of my repairs? 2) Since the Miata is financed, does this mean that I am in default on the loan agreement and what are those consequences?
Thanks
John
 


First off, because I am unfamiliar with Colorado law this may not be the best answer, but, it may be a start.

Contact your states insurance commissioner and ask if your state has an "exchange of business" statute. This essentially says that the insurance carrier is on the hook for the coverage if you had a reasonable belief that you had purchased the coverage. This is a longshot, but your best and cheapest solution. Your argument is obvious. Why would you buy comprehensive and collision on the 11-year-old car and not on the 2-year-old one that has a lienholder?

Another option is to ask your agent to put his errors and ommissions (E&O) carrier on notice and you file a claim against him with them because of his actual screw-up. As long as the error was an unintentional, they should pay your damage claim. This also may require you seek help from the insurance commissioners office.

Good luck.
 
I am not an attorney, but am a claims adjuster.(In California). This sort of thing actually happens fairly often. Have you contacted your Agent? What did he/she say? Your Agent will need to contact your insurance carrier and advise them of his mistake. As an adjuster (and formerly an underwriter), it appears that this is a very obvious mistake on your Agent's part. If your car is financed, you must have full coverage, or yes, your lienholder can add "VSI" (vendor secured insurance) and charge you an exhorbitant amount for this. It is usually about 10 times what you would pay through your regular insurance company. Your insurance carrier will probably review this error as a "coverage question" and determine whether they will cover your loss. They will want to take a statement from your agent, as well as from you. Your insurance, should they decide to cover this loss, will add the comp and collision coverage back to the date you added this vehicle and charge you the appropriate premium. They will also notify your lienholder that your coverage was in place all the way back to that date, which should cancel out any VSI that you may be charged from the lienholder. I'm not sure about the laws in your state, but right is right. If your insurance carrier does not offer to investigate this cover issue for you, demand that they do so. If necessary, contact your State Dept. of Insurance to assist you. I doubt you will have to go that far.
 
J

jwhutch

Guest
Thanks for the help. I contacted the DOI on Friday. it took a couple of calls and about an hour, but the company agreed to pay the claim. the policy was re-issued correctly and they agreed to waive the difference in premium from Jan to current
John
 

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