Auto Insurance Cancelation

[InsurerP]

After posting this complaint, I went back to May 31, 2016 to review my situation, January, 2018.
1. My husband opened the policy with e-check over the telephone with Customer Representative.
New Customer. I called the bank, and was told funds were there to cover the insurance. Checked account number and routing number, the insurance had. It matched the accounts.

Saw an email on my husband's cell phone dated June 1, 2017 headlined "Don't Worry No Action Needed".
Husband gets lots of emails, and probably thought the initial fee had cleared. But doing my investigation, I clicked to read this email. At the bottom was a paragraph from the Federal Credit Bureau indicating my account was not accepted. There was a number from a verification center. I called the number and was told a CS had
encoded the account wrong. Instead of Savings, the account was encoded Checking.

Now this letter came from the insurance company June 1. But it has no record of this email. As a new customer, why wasn't I given a null and void, so I could have rectified the situation June 1. Why did they hold me hostage until June 5 and cancelled June 17. When I found out about the lapse, they increased the initial fee, and made us pay for June 1 to June 17.

This company new we had blemishes on my husband's license. They knew my husband was a high risk. My insurance went from $365.00 to $477.00/ month. No lapse, paid.

To have a lapse in insurance, before you pay the initial fee, is very confusing.

To settle a fender/ bender claim reported June 15 and processed without a red flag indicating a problem, no excuse. But their excuse, the Claim's Department is separate from Billing Department. No Communication.

I believe, the Claim Adjuster was finally notified that claim had a problem but the process had begun. To cover himself, he stopped the claim, and waited until August 24, 2017 to close it. He knew that claim could not be completed without no money on the policy.

I feel we have become hostages for this company. Now I am dealing with lawsuits, car auctioned, rejections from other insurance companies.

[CGab]

Originally Posted by InsurerP

After posting this complaint, I went back to May 31, 2016 to review my situation, January, 2018.
1. My husband opened the policy with e-check over the telephone with Customer Representative.
New Customer. I called the bank, and was told funds were there to cover the insurance. Checked account number and routing number, the insurance had. It matched the accounts.

Saw an email on my husband's cell phone dated June 1, 2017 headlined "Don't Worry No Action Needed".
Husband gets lots of emails, and probably thought the initial fee had cleared. But doing my investigation, I clicked to read this email. At the bottom was a paragraph from the Federal Credit Bureau indicating my account was not accepted. There was a number from a verification center. I called the number and was told a CS had
encoded the account wrong. Instead of Savings, the account was encoded Checking.

Now this letter came from the insurance company June 1. But it has no record of this email. As a new customer, why wasn't I given a null and void, so I could have rectified the situation June 1. Why did they hold me hostage until June 5 and cancelled June 17. When I found out about the lapse, they increased the initial fee, and made us pay for June 1 to June 17.

This company new we had blemishes on my husband's license. They knew my husband was a high risk. My insurance went from $365.00 to $477.00/ month. No lapse, paid.

To have a lapse in insurance, before you pay the initial fee, is very confusing.

To settle a fender/ bender claim reported June 15 and processed without a red flag indicating a problem, no excuse. But their excuse, the Claim's Department is separate from Billing Department. No Communication.

I believe, the Claim Adjuster was finally notified that claim had a problem but the process had begun. To cover himself, he stopped the claim, and waited until August 24, 2017 to close it. He knew that claim could not be completed without no money on the policy.

I feel we have become hostages for this company. Now I am dealing with lawsuits, car auctioned, rejections from other insurance companies.

It's your responsibility to make sure your payments clear, it is not the responsibility of the insurance company or anyone else you make payments to.

You opened a policy on May 31st and the payment didn't clear. You stated you were told this by the insurance company on June 5th, but you didn't pay to become current on that day? Husband had accident on the 15th and letter received due to cancelation on 17th (letter was probably already mailed out). Husband paid on the 19th, but that doesn't automatically make the policy reinstated and you were told it was canceled.

Son's accident was on July 29th. Knowing the policy was canceled when you called on June 19th, you did nothing to get a new policy in place and had no coverage from June 15th till accident July 29th. To me this is all pretty clear. It's not the insurance companies fault that your initial payment didn't clear and therefore they canceled your coverage and you show a lapse in coverage. You knew the coverage was canceled. Unless you have a letter as proof that the policy was reinstated you have no leverage and therefore are responsible for the ramifications.