Had a minor accident & my insurance is now denying payment to the person I had hit and we are now being sued for the damages.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jun 27, 2011

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Insurance Question from Cleveland, OH

Asked on 06/27/2011

Had a minor accident & my insurance is now denying payment to the person I had hit and we are now being sued for the damages. Over a year ago I had a car insured thru my ins the car broke and couldn't be fixed so I called to let the ins co. know so they could stop billing me for a car I couldn't drive. Then I got my new car 6 months later and started ins thru my ins co again they made me pay for the 6 months my car was broke bc they said they insured me anyway plus the new policy fee, but wont cover a accident I was in bc payment is 9 days late? So they cover me for 6 months when I don't need it, and won't cover bc my payment was 9 days late getting to them????? Can they do this to me, I have proof of ALL payments!

Answer given on July 26, 2011

If you requested that the insurance on your previous car be cancelled, and then bought a new policy for your new car, there is no reason the insurance company should have made you pay for the time you didn’t have a car. You need to get this clarified, because without a payment, there would not have been any insurance.I presume the accident you had was after the insurance was put in force on your new car, and that you have proof that you made a down payment. Insurance companies are required to give a grace period for payment of premiums. The grace period is usually 10 days. If your payment was witin the 10 days, you should have been covered. However, if you were 9 days AFTER the cancellation date, then you would not have insurance for the accident. If you have a copy of the non payment notice, you should be able to determine if you paid the premium on time. If you did, you should talk to a supervisor at the insurance company to try to get this resolved. In any event you should get the money back for the 6 months you didn’t have a car, but I would first work on getting the accident covered.

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