What to do if my insurer canceled insurance on the wrong car?

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What to do if my insurer canceled insurance on the wrong car?

My husband and I cancelled the insurance policy on our vehicle, which is no longer driveable. My new vehicle incurred water damage 3 days ago and needs repairs. It is a new vehicle with a loan still out on it. When I made the claim I found out my insurance canceled the policy to my new vehicle instead of the vehicle we asked to be dropped off of insurance. Now they will not cover the damages. What are my options? I am lost and don’t know what to do.

Asked on January 3, 2013 under Insurance Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you can prove that the error was  your insurer's error--that is, you told them the correct car; and you have been paying all your bills on time--you may have grounds to force them to cover the loss. The policy is a contract, and if you have complied with all your obligations under it, the other party may not use its own error as grounds to escape its obligations. However, if the error was yours--you accidently provided the wrong car information; or if they sent you some confirmation of the cancellation which listed the car being cancelled, you did not catch that they were cancelling the wrong car--then the insurer would  most likely not have to pay: they are entitled (or rather, required) to cancel coverage if you tell them do so.


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