What are my options? How do you believe this will turn out?

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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 3, 2013

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Insurance Question from Alta Loma, CA

Asked on 01/03/2013

What are my options? How do you believe this will turn out? 1st of all I admit to being naive. Anyway I have my car financed I recently removed my comprehensive & collision coverage due to my premium being too high. I was unaware its required by lienholder to maintain full coverage. My broker never notified me of this and removed those deductibles. I was involved in an accident where I believe the other driver is at fault but fault as not been determined. Is there anything I can do to be covered? Also was my broker allowed to remove the coverage without notifying me?

Answer given on January 07, 2013

If you have a car that is financed, part of the contract states that you are required to continue comprehensive and collision coverage on the car as long as their is a loan on it. When you remored that coverage you were in violation of the terms of the loan.Your auto insurance agent should have reviewed the coverage and seen that there was a loan on the car. They then should have advised you that you should not remove the physical damage coverage from the policy. However, if you insisted on removing the coverage they would have to do so, since you are the policyholder and their client. When the paperwork was completed the bank should have seen the change and contacted you and the insurance agent and had the coverage reinstated. Again, the agent would have to hear from you to add it. They cannot add it back on without your permission.At this point in the accident you can only wait to see who is determined to be at fault. If it was the other party, then your damages will be paid and your car repaired. If not, then you have no recourse through your insurance policy. However, you should ask to add the coverage back on your policy for any incident going forward.


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