San Diego, CA asked in Consumer Law and Insurance Bad Faith for California

Q: Do we have any recourse with an auto insurance company that refuses to honor our policy?

We have been with an insurance company for 30 years. We have 4 cars with them for auto plus homeowners at a total cost of almost $5000/year. My wife was in a minor car accident last Thursday. We filed a claim online with them on Friday. They then noticed that the premium on her car had expired. I had looked at the website where I pay the premiums twice in the past month and it showed a balance due was $0 but then I saw "cancelled" in the fine print. They filed the claim anyway. I sent them an email stating my reasons why I thought the car should still be covered, since the website was very confusing. My wife received a call from a claims adjuster yesterday as if it was going through. Today an appraiser came out to assess the damage. Another person from the company called today and said they were cancelling the claim because the car was not covered. Also, need to know how to deal with the accident since car was not insured.

1 Lawyer Answer
Ali Shahrestani,
Ali Shahrestani,
Answered
  • New York, NY
  • Licensed in California

A: If you didn't pay the premium, the insurance is cancelled; but you're supposed to receive notice that the premium was due, and notice that the policy would be cancelled. Had you made late payments in the past that were accepted? Did you make a late payment this time? What does your policy say about such eventualities? More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AEesq.com. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.

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