Car insurance terminated policy earlier than requested, what do I do?
December 13, 2024 3:52 PM Subscribe
Insurance company accidentally cancelled my auto insurance earlier than what was requested and now there is a gap in coverage. I know this would affect my risk category in shopping around for auto insurance, but I don't know how long this will take to back date and correct. I am currently on another insurance plan that is planning to terminate my auto insurance in 2 weeks due to a completely different reason, so I'm feeling very overwhelmed in terms of time frame. Do I wait for this error in gap coverage to be fixed and then shop around for auto insurance? Would this count against me? Or do I just shop around for auto insurance now -- because I don't know how long this error is going to take to fix and because I am short on time?
Due to my own stupidity, I was on a bundle package of auto insurance with my family. I was driving the car owned by a family member, and I was on a policy. However because rates went up, they decided to cancel their auto insurance and switch to a cheaper policy. There is documentation that the cancellation request was for a specific date, and then the new car policy would start the following day. However, the auto insurance company terminated the car insurance on the day the request was made --- instead of the date requested. And although the new policy had initially accepted and covered the bundle package, they found a reason to later send a letter to deny the entire policy for everyone and notify that the coverage would be terminated in 2 weeks.
I have tried to talk to the insurance agent to get an idea of when this insurance lapse would be fixed, but they don't seem to have any real sense of how long it would take, and if this would be corrected immediately. In the mean time, I am trying to shop around for car insurance, but the insurance agent said that until this problem is fixed, that they would advise for me to wait to shop around. The agent said that I would be put in a high risk category and that I might be either denied auto insurance or have a high policy rate and going forward. He even implied that once I started coverage with another carrier with a gap of coverage at the time of the policy, it would count against me --- even if the error could later be fixed.
It's been a couple of days, and they still don't know when this would be fixed and I'm worried that I will again lapse in coverage by the time they fix this problem. Should I go ahead and try and shop around with auto insurance with this error in gap in coverage?
Sorry if this is a mess, and I think this is my fault, but I am completely stressed out and feel dumb as a grown adult for not thinking ahead to have the title in my name and get my own insurance. If anyone can help sort through this post with advice, I would greatly appreciate it.
Due to my own stupidity, I was on a bundle package of auto insurance with my family. I was driving the car owned by a family member, and I was on a policy. However because rates went up, they decided to cancel their auto insurance and switch to a cheaper policy. There is documentation that the cancellation request was for a specific date, and then the new car policy would start the following day. However, the auto insurance company terminated the car insurance on the day the request was made --- instead of the date requested. And although the new policy had initially accepted and covered the bundle package, they found a reason to later send a letter to deny the entire policy for everyone and notify that the coverage would be terminated in 2 weeks.
I have tried to talk to the insurance agent to get an idea of when this insurance lapse would be fixed, but they don't seem to have any real sense of how long it would take, and if this would be corrected immediately. In the mean time, I am trying to shop around for car insurance, but the insurance agent said that until this problem is fixed, that they would advise for me to wait to shop around. The agent said that I would be put in a high risk category and that I might be either denied auto insurance or have a high policy rate and going forward. He even implied that once I started coverage with another carrier with a gap of coverage at the time of the policy, it would count against me --- even if the error could later be fixed.
It's been a couple of days, and they still don't know when this would be fixed and I'm worried that I will again lapse in coverage by the time they fix this problem. Should I go ahead and try and shop around with auto insurance with this error in gap in coverage?
Sorry if this is a mess, and I think this is my fault, but I am completely stressed out and feel dumb as a grown adult for not thinking ahead to have the title in my name and get my own insurance. If anyone can help sort through this post with advice, I would greatly appreciate it.
what do I do?
This is exactly the sort of situation an independent insurance broker can help you with - navigating weird insurance situations. They are incentivized to help you out, and in my experience they charge little to nothing to do so. They take a commission from the insurance company. In my experience, they often end up providing lower cost insurance options because they can shop a lot of providers simultaneously.
posted by saeculorum at 4:06 PM on December 13 [1 favorite]
This is exactly the sort of situation an independent insurance broker can help you with - navigating weird insurance situations. They are incentivized to help you out, and in my experience they charge little to nothing to do so. They take a commission from the insurance company. In my experience, they often end up providing lower cost insurance options because they can shop a lot of providers simultaneously.
posted by saeculorum at 4:06 PM on December 13 [1 favorite]
The most important thing is, do not drive the car until it is insured. I assume you aren’t, but just wanted to make sure.
So, this is someone else’s car, right? If this is the first time you’ve ever gotten insurance in what sense is this a “lapse of coverage?” It might be that a different broker will have a better idea of the rules in your state, too. Good luck getting it straightened out.
posted by Gilgamesh's Chauffeur at 4:35 PM on December 13
So, this is someone else’s car, right? If this is the first time you’ve ever gotten insurance in what sense is this a “lapse of coverage?” It might be that a different broker will have a better idea of the rules in your state, too. Good luck getting it straightened out.
posted by Gilgamesh's Chauffeur at 4:35 PM on December 13
Call the insurance company. If the agent you speak to cannot give you a meaningful update, escalate to their supervisor. Continue escalating until you get a meaningful answer. If no one can give you a meaningful answer, let them know that you will be raising a complaint to the relevant organisation (eg. Ombudsman or whoever it is where you live)
Be polite with everyone you speak to, but be firm and escalate as needed.
posted by kinddieserzeit at 9:04 PM on December 13
Be polite with everyone you speak to, but be firm and escalate as needed.
posted by kinddieserzeit at 9:04 PM on December 13
Getting a quote on an online tool is not getting insurance, so you can find out if they would get you an acceptable rate. You could be a buyer speculating on buying a new car, they don't know, so I don't see how that could count against you. It may not be a quote you take, but it might give you a ballpark figure.
Also if it's several thousand dollars bear in mind that is not necessarily a bad sign, it's often a sign that you don't meet their criteria for a good risk - as in, they're the wrong insurer for you. I've seen it happen and it doesn't mean everyone else will do the same.
posted by How much is that froggie in the window at 10:35 AM on December 14
Also if it's several thousand dollars bear in mind that is not necessarily a bad sign, it's often a sign that you don't meet their criteria for a good risk - as in, they're the wrong insurer for you. I've seen it happen and it doesn't mean everyone else will do the same.
posted by How much is that froggie in the window at 10:35 AM on December 14
(Doubly true if you give them the make and model but not the plate or VIN.)
posted by How much is that froggie in the window at 10:36 AM on December 14
posted by How much is that froggie in the window at 10:36 AM on December 14
I don't know that there is gap.
you say that:
"Insurance company accidentally cancelled my auto insurance earlier than what was requested and now there is a gap in coverage"
But you also say
" I am currently on another insurance plan "
It's not obvious that a gap exists. Someone is insuring you right now. So what gap?
-
It seems the real problem is
"planning to terminate my auto insurance in 2 weeks "
So you'll have to find a new insurer over the next 2 weeks.
It's not impossible. You have time.
Have the broker search for another insurer.
An insurance company can issue a binder.
A binder is basically a temporary insurance policy, usually 30 days, that binds the company to provide insurance for that time before they complete the actual new policy.
It's basically a 1 or 2 page letter or email.
Can be done the same day.
You have time to use the brokers services.That's what they do.
posted by yyz at 1:02 PM on December 14
you say that:
"Insurance company accidentally cancelled my auto insurance earlier than what was requested and now there is a gap in coverage"
But you also say
" I am currently on another insurance plan "
It's not obvious that a gap exists. Someone is insuring you right now. So what gap?
-
It seems the real problem is
"planning to terminate my auto insurance in 2 weeks "
So you'll have to find a new insurer over the next 2 weeks.
It's not impossible. You have time.
Have the broker search for another insurer.
An insurance company can issue a binder.
A binder is basically a temporary insurance policy, usually 30 days, that binds the company to provide insurance for that time before they complete the actual new policy.
It's basically a 1 or 2 page letter or email.
Can be done the same day.
You have time to use the brokers services.That's what they do.
posted by yyz at 1:02 PM on December 14
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posted by Brandon Blatcher (staff) at 3:54 PM on December 13