A
asj
Guest
I co-signed a loan for my 19yr old daughter to buy a car. She got into an accident 10 days after her insurance had been cancelled for non-payment of premium. I spoke with the bank and they said they have evidence in the file that they were listed as the lein holder on the policy, but never recieved the 10 day cancellation warning, nor did they receive the cancellation slip itself.
Now, the car has been totalled and the bank needs to be paid for the car. According to the bank, had they been notified they would have called to see what was going on because if her insurance were to lapse they would have put a rider on for this car (at a much higher premium) until it was straightened out.
Is an insurance company responsible to notify a lien holder on an auto policy of a cancellation before it happens? Or even once it happens if they have a lein holder listed?
When the insured is notified of the 10 days to cancellation for nonpayment, isn't the lein holder also to be notified?
This wouldn't have happened if the bank was notified because they would have called me, as they have in the past when she was late with her loan payment.
What should I do? Do I need to get an attorney? The bank seemed to think it might not be a bad idea, since we are looking at well over $5,000.
Now, the car has been totalled and the bank needs to be paid for the car. According to the bank, had they been notified they would have called to see what was going on because if her insurance were to lapse they would have put a rider on for this car (at a much higher premium) until it was straightened out.
Is an insurance company responsible to notify a lien holder on an auto policy of a cancellation before it happens? Or even once it happens if they have a lein holder listed?
When the insured is notified of the 10 days to cancellation for nonpayment, isn't the lein holder also to be notified?
This wouldn't have happened if the bank was notified because they would have called me, as they have in the past when she was late with her loan payment.
What should I do? Do I need to get an attorney? The bank seemed to think it might not be a bad idea, since we are looking at well over $5,000.