can mu auto insurance company sue me for an accident if they dropped my coverage before the date of the accident?

UPDATED: Oct 1, 2022

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can mu auto insurance company sue me for an accident if they dropped my coverage before the date of the accident?

My boyfriend drove my car and had an accident. He does not have insurance and he is not on mine. My insurance company dropped me a year before the accident and sent me back all of my premiums that I paid. they then turned around and sued me for what they paid out for that accident. Then they sent me a settlement letter which says I was not covered, they would pay the people state minimum liability and dismiss everything else AND I would have to pay them 6,000. My question is I should not have to admit I did not have insurance? Will I then have insurance surcharges? Why am I paying them 6000. The biggest question is if they claim I wasn’t covered why are they asking me for anything?

Asked on April 11, 2018 under Accident Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you were not covered at the time, they had no obligation to pay for you. If they had no obligation to pay for you but did so voluntarily--even accidentally--that is not your problem or your cost: it is their error and they need to absorb the cost of it themselves. An insurer who was not covering has no grounds to seek reimbursement from you. You appear to have a defense to their claim: if they can't prove you were covered at the time--which they should not be able to do if they dropped you a year before the accident--they should not be able to recover money from you. If the facts are as you state, it is difficult to see what grounds for liability they might have.

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