If my insurance company has already cut the claim check to the auto body shop for repairs and they began work on it can it be offset if I cancel policy because my premiums tripled. An accident by a hit and run driver or will my repairs still be made?
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UPDATED: Oct 5, 2017
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Insurance Question from Harvey, IL
Asked on 10/05/2017
If my insurance company has already cut the claim check to the auto body shop for repairs and they began work on it can it be offset if I cancel policy because my premiums tripled. An accident by a hit and run driver or will my repairs still be made? In other words once the check is issued to the body repair shop with their name on it and mine and I cancel policy will my claim still be honored cause I haven't picked up vehicle yet it a being repaired. I have a 500 deductible. Damages were 2200$check Is made out for 1700$ will it be a promblem when I go to pick up car?
Answer given on October 06, 2017
If you had an accident and your insurance company has agreed to an amount for repairs and have sent the check to the repair shop, the work can continue even if you decide to cancel your policy with that insurance company. Of course, you can not backdate the cancellation. It would be best to wait until all of the work is done before you cancel the policy. Your insurance company cannot increase your premium until the next renewal date. If they are saying they are increasing the rates you need to talk to a supervisor with the insurance company, as that is illegal. If you can not get satisfaction from the insurance company tell them you are calling the Dept of Insurance regarding the claim.
Also, if the claim was caused by a hit and run driver, it is unusual for the insurance company to increase your rates so much. If you were not able to provide proof of the other driver, it may be the reason the insurance company is increasing your rates, as they are considering the accident at fault.
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