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Small Claims aginst an Auto Insurance Company....am I right?

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S

SimlerP

Guest
State of Texas



I will be as brief as I can.

In October 1999 I went to an insurance agent to get insurance on a new car I bought, they helped me, I paid and I left. The next month I bought another car and went back to have that car added to the current insurance I had. I decided to add my father on the policy because I was told that it would be no extra cost because I am the higer rated driver, so I added him. I received a letter from the insurance company a month later stating that my monthy premiums are going to increase because of the new driver, my father, who was added. It turned out that his age was entered wrong by the Insurance broker, it was entered that he was 16 years old, therefor increasing the payments. I contacted my broker who signed me up for the policy and they told me that only the insurance company could correct this problem so I called them. They told me that only the broker could correct this...I went back and forth and then finally on my third time with my broker they told me to come in the office. The broker told me the easist way to handle this to is cancel the first policy and open a new one with a totally new company, I thought this was weird buy I trusted my agent and went with it. So I opened a new policy and let the other one cancel two weeks later as I was instructed...There was not a lapse in coverage.

I received a letter from a collection company months later saying that I owe the first Insurance Company $400 because the account was canceled early. I attempted to comtact the owner of my broker company and I only communicated with him via a third party employee. I felt that I was not responsable for this charge because I was told by their company to cancel the account, they should have know of any charges that could come up...that is why I pay them. The owner said he would not pay it because the person who told me to cancel the policy no longer works for the company and therefor he is not responsable.
These are the actions I have taken:

Sent a certified letter to the broker owner explaining my situation again and asking him to contact me within 2 weeks or face a small claims suit. I never heard anything from him.

Sent a certified letter to the Insurance Brokerage office asking for my files. They never sent them or contacted me and told me why they couldn't

Filed a small claims case.

Found out that the employee who the owner claimed did not work there anymore actually does work there.

When having an officer serve the owner court papers to the owner the owner was very evasive. The officer had to get a court order in order to serve anyone who woker at the company because the owner never returned calls and was never there.

This company has a history of being evasive; with letters I have sent, unanswered phone calls, and the delivery of the court papers.

My Questions are: 1)Do I have a case?
2)Is the fact that he was so evasive help in my case at all?
3) Do you think that if I lose I will have to pay for the defendants attorneys cost as they have asked for?
4)Any tips on winning the case.

Thank you

 


ALawyer

Senior Member
I would IMMEDIATELY complain to the State Insurance Department and the Better Business Bureau.

The broker's conduct is highly unprofessional professional. It made an error by not helping get the policy corrected and instead getting yo to take a new policy instead of correcting the old policy. (IT also likely earned a second commission.)

The insurer's "short rate" penalty, by the way, is designed to enable the inrance company to recoup the costs of it paid out to put the policy on the books, including the broker's commssions the insurance company paid and its expenses in underwriting and policy issue.

The broker's evasiveness in taking service is really not relevant to the lawsuit, but it is to character. It can create a public relations problem for them and may be of interest to the regulators though. The lying about the guy not being there is -- although even if he were not that should not impact your rights.

As for you owing them their attorneys' fees if you lose, I don't know the basis for that unless your jusirsdiction has a "loser pays law" -- as in England.
 

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