Car Insurance Coverage

[Kevin shoup]

Jurisdiction

Michigan

So I was hard on cash for a month and was late on my car insurance payment. I had until the 23rd to make and payment. I made a payment at 11:59 on the 23rd which processed on 12:00:04(I called the insurance company to find the exact time). I received a receipt of payment email and didn't think anything of it. The next day I got into an accident that ended up totaling my car(2019 Jetta). When I called to make a claim on it I was told that my policy had been canceled. I didn't receive an email saying it had been canceled until after the accident happened. Had a received an email the day I made the payment I could have reinstated the policy with no loss of coverage or fees and I wouldn't have an issue, but I didn't get the email until 2am on the 25th, which was after the accident. Do I have any recourse or am I stuck paying on this car that is totaled. Any help/advice would be amazing. Thank you!

 

[adjusterjack]

I made a payment at 11:59 on the 23rd

AM or PM.

which processed on 12:00:04

PM or AM.

I didn't get the email until 2am on the 25th,

Getting the email and having it sent to you are two different things. What were the send date and time?

Do I have any recourse or am I stuck paying on this car that is totaled.

There is a page (or two) in your policy that addresses cancellation. I would have to read the whole thing before commenting. Scan it and upload it here.

 

[Kevin shoup]

It was 11:59 pm and 12 am. I attached the emails and will get the cancellation

 

[Kevin shoup]

Because the policy was canceled I can't seem to find a copy

 

[flyingron]

If the termination was for anything other than non-payment, would require prior notice. The termination for non-payment is based on what it says in your policy. They don't necessarily have to tell you that you aren't insured anymore if you don't pay.

The question is whether acceptance of the late payment and their acknowledgment of that didn't acquiesce over the late payment. I'd be working my way up the Progressive management.

See here: Lapse in Insurance Coverage - Insurance Lapse

 

[adjusterjack]

Because the policy was canceled I can't seem to find a copy

One of the most important documents you'll ever have in your life and you can't find it? Yikes.

Maybe you can get it from Progressive. I can't comment on it without reading it.

 

[Kevin shoup]

Found the policy info.

 

[adjusterjack]

FlyingRon turns out to not be correct. Notice was indeed required for a non-pay cancellation.

See the third paragraph under the word Cancellation:

We will give at least 10 days notice of cancellation if the policy is cancelled for nonpayment of premium.

Did you receive notice that your policy WILL be cancelled in ten days if you don't pay?

Perhaps at some time prior to the 23rd with the 23rd as the deadline?

 

[Kevin shoup]

I checked and I did get an email saying that they needed to have payment by the 23rd.... they said that it didn't matter that it was 400th of a second after midnight.... on the payment history it even has the payment processing before the cancelation

 

[flyingron]

FlyingRon turns out to not be correct. Notice was indeed required for a non-pay cancellation.

I didn't say notice wasn't required. I said it was as stated in the policy. If it had been for reasons other than that, there's a statutory 20 or 30 day (depending on the reason) notice requirement. For nonpayment, it's only governed by the policy.

Did they send you a prior notice of cancellation than the one you received Saturday?

 

[mightymoose]

Hmm... Wouldn't it also be relevant whether or not they have accepted the payment that was made?

Was the payment refused/returned?

 

[flyingron]

That was my point in the first post.

 

[adjusterjack]

I didn't say notice wasn't required.

Right. Sorry. I read the two sentences wrong.

I checked and I did get an email saying that they needed to have payment by the 23rd

When, exactly was THAT email dated?

they said that it didn't matter that it was 400th of a second after midnight.... on the payment history it even has the payment processing before the cancelation

That's right.

Hmm... Wouldn't it also be relevant whether or not they have accepted the payment that was made?

Not necessarily. Payments go to different departments than underwriting. An acknowledgement of paying is not an acknowledgement of coverage.

Was the payment refused/returned?

It should be, eventually.

 

[Kevin shoup]

The payment hasn't been returned and that email was dated the 7th.

 

[Zigner]

Oftentimes policies will contain a provision that acceptance of a payment after cancellation doesn't not mean that reinstatement is automatic.

 

[adjusterjack]

The payment hasn't been returned and that email was dated the 7th.

Did you ask for it?

With what response?

 

[Kevin shoup]

They said that covered my may payment(which would cover June) and that was owed so I don't get it back

 

[Zigner]

If your car was financed, it's possible that the lender will place insurance on the car and charge you (at highly inflated rates). If they do that, then you'll only be out that payment amount instead of the full amount of the car...lucky you!

 

[adjusterjack]

They said that covered my may payment(which would cover June)

But not all of June. Given the final deadline date my guess is that your May payment was due about May 13 and somewhere around June 13 you were emailed your 10 day notice of cancellation for non-payment.

You were covered until midnight of June 23 so, yes, you did owe for that period.

 

[Kevin shoup]

The payments were scheduled for the 25th of every month. When I renewed the policy it was on March 25th