am i covered during a lapse?

by repjohnson » Wed Apr 07, 2010 10:06 pm

i have had the same insurance for 6 yrs. always paid in full and on time. my son totalled his car. When the police came we discovered the insurance had expired on 4/5/10 @ midnight. The accident was 9:00 am on 4/6/10. I immediately went to my ins agent, told him about the wreck and paid the policy in full. The company said they mailed a bill on 3/29/10, due on 4/5/10. I did not receive it. do they have to cover it since they have reinstated the policy? They have denied it stating I was w/out coverage for 9 hours.

Total Comments: 2

Posted: Wed Apr 07, 2010 10:51 pm Post Subject:

do they have to cover it since they have reinstated the policy?

ONLY, if they reinstated it WITHOUT a lapse in coverage...

They have denied it stating I was w/out coverage for 9 hours.

and I assume the loss occured in that nine hour period...well sounds to me like you're more than likely out of luck, and this really sucks..and I'm terribly sorry for you, really.

The company said they mailed a bill on 3/29/10, due on 4/5/10.

This doesn't sound right to me...I'd think they'd mail those notices out more than a week before they are due..however, it is not their responsiblity to make sure you get the bill...they just have to mail it to your last known address..

Apparently they have reinstated you WITH a lapse in coverage, (meaning zero coverage for that nine hours)...I'd appeal it, see if you can climb the ladder a little more, see if your agent can help you...I have seen these things over turned but not very often. And it's a 'gift' when they do...They are most certainly within their contractual right to deny coverage during that lapse...good luck...and let us know if we can assist you in any other way.

Is your boy ok? were there any other vehicles/people involved?

Posted: Mon Apr 12, 2010 04:37 pm Post Subject:

I would check with your states Department of Insurance regarding the rules about how much notice the company needs to provide for a Bill, Cancelation Notice or renewal. In most states there is a Legal Notice of cancelation requirement where they need to let you kn ow 10 days in advance if they intend to cancel your coverage. Many "preferred" companies automatically renew your policy before they receive payment, and will cancel later, with notice, if they do not receive your money.
The company does not want to pay. They may start with a no and if you accpet that they win.
I would dig a little deeper and escalate with ther claims department. If you don't get satisfaction there go further and keep pushing. Be polite and try not to get adversarial and you will get better results.

Good Luck!

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