Can I sue my auto insurance company for not taking payment out of my account when due?

I received a $300 fine from the MVA. This is the second time my insurance lapsed for late payment that wasn’t actually late. My insurance agency billed me a lower payment than usual this past month and haven’t told me why. I haven’t been over paying them so that’s not a reason. My mother had this same problem.

Asked on July 8, 2012 under Insurance Law, Maryland


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you have been making payments to your insurance carrier for auto insurance on a timely basis and for some reason your carrier allowed your policy to lapse resulting in a $300 fine from your department of motor vehicles (MVA), your insurance carrier is responsible to you for this fee as part of your damages due to its negligence.

As such, either your carrier reimburses you this $300 amount and if not, your recourse is small claims court.

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