Why am I supposed to visit the Motor Vehicle's Office ?

by Guest » Tue Oct 10, 2006 04:56 am
Guest

Guys, I was late towards paying for my car insurance by just a couple of days and now my insurance company is turning me towards the Motor vehicles office. Now that I'm supposed to pay quite a lot in order to get out of it. I just need to know whether its ethical or lawful for an insurance company to treat an old customer like me in this fashion without even giving the slightest hint ??

K. Openheimer

Total Comments: 5

Posted: Tue Oct 10, 2006 06:01 am Post Subject:

my friend, don't ever commit this mistake of paying the liability bills at the last minute. Rather make sure that you've plenty of time to counter the delays in mail service. In your case, your insurance company seems to have notified the motor vehicles office that your insurance policy stands cancelled once you are failing to pay the premiums in time ! regards.

Posted: Tue Oct 10, 2006 06:26 am Post Subject: its a pity !

hi! its a pity that you could end up paying huge sums in terms of fines and penalties in case your policy is considered to have lapsed till it gets reinforced.

Also I'm wondering what could be the worth of debts if you gotta face any accident with your fault during this period till your vehicle remains uninsured !

Please drive safely and do take care.
regards, Fatman

Posted: Tue Oct 10, 2006 06:47 am Post Subject: Dept. of insurance would assist you for sure..

hey ! given the reality I'm sure that the dept. of insurance would surely help you to get the risks to a minimum.
But I'm sure of one thing, that even if you meet with any accident at this juncture which is not your fault then also you won't be able to collect your initial $10,000 in terms of losses because of the "no-pay, no-play" insurance law.
thanks, Birdman

Posted: Fri Jun 08, 2007 09:54 pm Post Subject:

If an auto policy lapses the insurer likely notifies the DMV, which then thinks you are running around uninsured. Not a good position to be in. You want to avoid an SR22.



*System Edited : Link moved to Signature as per TOS

Posted: Wed Sep 05, 2007 03:45 am Post Subject:

Hi K,

Well...let's be honest here. It's pretty unlikely that you were unaware that your insurance was about to lapse. Every state has laws that require that the insurer is required to give you notice of non-payment and impending cancelation. Most states require at least a 10-day notice for lapse due to non-pay.

The only reason that you didn't receive anything is if the carrier didn't know where you live. While it is rare that these notices are not given, it does happen, and I would ask your insurer for proof that the required notice was sent. Given that you are aware that the insurance coverage has terminated because the bill hasn't been paid, I think that they probably have the correct address and provided you with proper notice. A lot of this depends on the state in which you live. If you could give me that info, I could show you what the rules are!

Next, chances are that if the state was notified that your coverage lapsed, you are already required to file an SR-22. It is the rare state that requires notice if the normal, typical insured lapses their policy. Think of all the paperwork they would have to deal with. Thousands and thousands of policies lapse every day in every state...it would be a mountain of paperwork!

I know that this is a royal pain to deal with. The best advice that I could give you would be to make sure your policy stays in force until whatever situation you are dealing with is over. Please let us know if there is anything else, or if you would like to provide us with the details of what state you're in!

Good luck!

InsTeacher 8)

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