What can I do if my insurance company denied my claim because my policy was cancelled due to non-payment but I was never made aware of it?

UPDATED: Sep 30, 2022

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.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What can I do if my insurance company denied my claim because my policy was cancelled due to non-payment but I was never made aware of it?

I was in a car wreck yesterday. I filed a claim online and then went onto my account to check on the status later in the day. However, I found out that the insurance company cancelled my

policy back last month due to non-payment. The last time I heard from them (about another matter) was 4 months ago; I never delete my emails. There was no mail notice that my

payment was late, no email notice, or phone call. I was on an auto-pay option so I assumed that I was making payments monthly as I never heard from them . Also, I am leasing my vehicle so the finance company would always call me right away if there is any change in my insurance policy. I never heard from them either. If my claim is denied, is there a way for me to appeal this decision?

Asked on June 4, 2016 under Insurance Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If your claim is denied, you can use whatever internal appeal procedure the policy provides for, if any; and if there is none or that does not work, you can sue the insurer for breach of contract (an insurance policy is a contract), if you believe that under the circumstances and terms of the policy, they should have paid (i.e, your policy should not have been caned). The key will be showing that the cancellation was inproper: either that they did receive your payment, but did not properly credit or apply it; or that under the terms of the policy, in order to terminate for nonpayment, they had to provide you certain warnings or notices, which they failed to provide. If you can show they did something wrong, you should have a good chance of getting the coverage reinstated; but if the fault was yours (e.g. not maintaining a large enough balance to cover the premium, or not properky siging up for autopay, etc.), then it is likely the cancellation will stand.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption