Insurance company didnt put out full coverage on my car as required by NYS it has a loan on it. Is there anything I can do?

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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: Jan 23, 2016

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Insurance Question from Clarence, NY

Asked on 01/23/2016

Insurance company didnt put out full coverage on my car as required by NYS it has a loan on it. Is there anything I can do? My state requires all cars that have a loan on them to have full coverage. My insurance company knew this and did not put it on and will not help with any repairs. Is there anything that can be done about this?

Answer given on January 24, 2016

While each state is different in handling insurance laws, most states require liability coverage for any owner of a vehicle. The liability limits vary by state, but the insurance agents should know the minimum amount of liability.For physical damage insurance such as comprehensive and collision, the policyholder is the one to determine whether they want that coverage and what deductibles are wanted. When you purchased the insurance you should have discussed this coverage with the agent or insurance company. If a lender is shown on the policy it would seem the agent would have offered comprehensive and collision. It also seems that the lender would have received a copy of the insurance policy and seen the proper insurance was not there. However, it is ultimately your responsibility to review the policy and coverages. Unless the policy is very new, it is unlikely the insurance company will assist in fixing this oversight. If it is only a month or so, they may be willing to backdate the coverage and you pay the additional premium for the additional insurance coverage.


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