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

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

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...

Full Bio →

Written by

UPDATED: Jan 3, 2013

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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.

IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption