Lien Holder VS Insurance Company

by Guest » Fri Jan 07, 2011 01:27 am
Guest

My car was finance by a bank in California. I had accident and my car totaled. I opened claim and The insurance company denied the claim due to the face that my insurance coverage was in lapse for 2 days due to non-payment of premium. The insurance did not pay the finance company either. Now the finance company is suing for the loan. Can insurance company not to pay to Lien Holder?

I appreciate your advise..

Total Comments: 3

Posted: Fri Jan 07, 2011 04:38 am Post Subject:

Let's see... you did not pay for insurance so they are not going to pay your claim. So the answer is, yes.

Posted: Wed May 11, 2011 07:17 pm Post Subject:

Unfortunately insurance is a service, and as with all services if you do not pay the bill the service will be cancelled. Since the accident occurred while your policy was cancelled, or in a lapsed status, the insurance company is not liable for the damages and does not owe the finance company any money. This unfortunately means you are liable for the loan on the vehicle.

Posted: Fri May 13, 2011 09:26 am Post Subject:

Ken has provided a sparkling clear answer. You can rely on that as fact.

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