Paid car insurance company for policy, then ins company rejected the policy and kept money?
Last week, I was a day late paying my insurance policy. However, the insurance company still accepted my payment. A week later, yesterday, I get a letter from my finance company and motor vehicle saying I have an "X" amount of days to get insurance or my registration will be suspended. So I called the insurance company (local office was closed, so I had to call the 800 number) The finance rep informed me that they rejected my insurance because I was a day late. However, I was informed I had a certain amount of days to pay before a lapse or rejection. So I went to th local office and paid my $300 plus dollars. The insurance company took my money and did not notify me of the rejection. I was told I could recieve a refund check, however, is there some sort of legal action I could take against the inurance company for fraud or deception? After all, I have the reciept of payment and policy, ins. cards etc. But they have my money and I have no ins. Any suggestions?
Horton is right, call them and threaten action with the state insurance commission and you should get some action. I had a similar situationand when they heard me say Insurance Commission and Fraud they stumbled all over themselves to reinstate my policy and give me a refund
July 17th, 2010 at 5:54 am
Each state has an insurance commissioner. Look up on the internet or in the phone book. Also contact your local BBB (Better Business Bureau).
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July 17th, 2010 at 6:12 am
Horton is right, call them and threaten action with the state insurance commission and you should get some action. I had a similar situationand when they heard me say Insurance Commission and Fraud they stumbled all over themselves to reinstate my policy and give me a refund
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July 17th, 2010 at 6:47 am
Normally, you have a grace period of 31 days in which to pay premiums. If you paid a day after the grace period ended, the ins company probably kept your $300+ payment as premium for the previous month and then decided they no longer wanted to do business with you. Check with your State Insurance Commissioner to get their rules for car insurance in your state. You can file a formal complaint with them and the ins company must answer the complaint or risk losing their license to do business in that state.
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July 17th, 2010 at 6:52 am
Complaint to police
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http://www.freewebs.com/insuraces-assurances/
July 17th, 2010 at 7:33 am
If a legal notice of cancellation was issued, they cancelled the policy legally. They are NOT required to reinstate your policy. The payment gets processed by an agent, likely, and it’s not THEIR option to reinstate or not, all they can do is request it and forward the money.
You have no legal option. As soon as your payment clears, the company should be refunding your money, less the cancellation fee, if applicable. There was no fraud or deception.
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agent, 21+ years
July 17th, 2010 at 7:46 am
Get different insurance and save yourself the headaches.
You could try to sue, but you are dealing with contract law, not personal injury. Those attorneys want money up front, not a percent if you win. We are talking thousands here. And your case looks very unlikely to win. Fraud requires intent. And what are your damages? Interest on $300 for a few weeks?
Another option is to file a complaint with the state department of insurance, as mentioned previously. Unlike what was mentioned previously, insurance companies to not shake in their boots about these complaints. And they will never provide you free insurance because of a complaint. They receive hundreds every year. They are required to provide an answer to the complaint. They will state that you failed to pay on time, so they didn’t reinstate your policy. That would be the end of it.
While it may piss you off, your best option is to call them and ask when you will receive your money back. (I bet you have received it, or will shortly.) If they say you aren’t going to get the money (and it might not be all $300 because of cancel fees in the contract but it should be real close), or they take forever to refund it, then file the department of insurance complaint. It might help them find the checkbook before they file their answer to the complaint.
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Years of pissing off the motoring public.
July 17th, 2010 at 8:30 am
Being late with an ins premium,especially auto,is about the worst thing you can do.
If you ever get out of this mess, NEVER be late again.
You can sign up for monthly premium and have the amt automatically taken out of your checking acct.
But you are responsible for seeing there is enough in your checking acct to cover the premium.
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