Help! Car damaged, possibly totaled...need advice!

Dec 7, 2018 at 6:49 AM

  1. NowWhat
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    NowWhat New Member

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    My husband and I bought a car a month ago,via a loan from our bank. We just made our first car payment two days ago. Our insurance premium was due two days ago, as well, but our payday is a little late this month so I needed to pay it today. In NC, you have a 30 day grace period before it lapses so no problem. EXCEPT I have memory problems from a stroke I had a few years back & forgot that this was my renewal of the policy payment. In other words, if I didn’t pay by the due date (two days ago), my policy cancelled, NO GRACE PERIOD. I’m going to pay the renewal payment today but here’s the clincher: Last night my husband was driving. The car in front of him hit an object (furniture!) in the road, my husband then hit it and the driver behind him hit it. Our car is considerably damaged, very possibly totaled although it’s stoll drivesble, and we owe 2 full years of payments on it. Police did come & there is a case #. What do I do at this point?!?!
     
    NowWhat, Dec 7, 2018 at 6:49 AM
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  2. fed up
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    fed up Super Genius

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    Pay the premium right away and see if the policy is continued without a lapse, don't worry about grace periods. After you are assured that the policy was continued without a lapse, call the claims department and file the claim
     
    fed up, Dec 7, 2018 at 8:53 AM
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  3. NowWhat
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    Hi fed up, thanks so much for your response. Are you an insurance agent by trade? Just curious as to whether your take on it is from an industry viewpoint or layman’s. I did pay the premium immediately and before doing so it did say “pay this amount to retain continuous coverage with no lapse.” But will they really cover something that happened while, technically, my insurance was cancelled?! I’m making myself sick worrying over this...geez... And don’t I need to file a claim within 24 hrs of the accident?
     
    NowWhat, Dec 7, 2018 at 9:24 AM
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  4. fed up
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    fed up Super Genius

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    Yes I am an insurance agent. Stop worrying. I would call in the claim tomorrow after the premium payment has been processed through their system. Hope you car is not totaled, hope you have full coverage, hope you have rental coverage. Not much more you can do but let the system play out. Is the vehicle new or used? Your policy probably says something along the lines of, "In the event of an accident you must notify us promptly"
     
    fed up, Dec 7, 2018 at 9:33 AM
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  5. NowWhat
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    Vehicle is used, I do have full coverage and rental coverage. Insurance company is Progressive. Thanks soooo much for your kind words and expert advice!
     
    NowWhat, Dec 7, 2018 at 9:56 AM
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  6. adjusterjack
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    adjusterjack Guru

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    I am a retired claim rep. You have a big problem.

    Where did you read that? If it was on your regular renewal bill, it's meaningless now.

    The insurance company will note the time and date of the payment and, when the claim is investigated, will find out that the accident occurred while the policy was lapsed.

    According to the North Carolina Department of Insurance:


    See Page 14 of the following guide.

    http://www.ncdoi.com/_Publications/Consumer Guide to Automobile Insurance_CAU1.pdf

    Sorry to be the bringer of bad news, but it is quite likely that your claim will be denied for lack of coverage.
     
  7. VolAgent
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    VolAgent Guru

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    Yeah, I was kind of thinking that would be the case. I figured I would wait for Jack to look up the appropriate NC statute.

    On, and don't lie about when it happened either. One, the police report will out you. Two, you could now be charged with insurance fraud.
     
    VolAgent, Dec 7, 2018 at 11:50 AM
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  8. fed up
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    fed up Super Genius

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    That is why I said to wait until the payment is processed and make sure that the policy is continued without a lapse. Can't rely on anything stated by billing department prior to the policy being continued or reinstated.
     
    fed up, Dec 7, 2018 at 12:01 PM
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  9. NowWhat
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    adjustejrack, it stated “pay this amount to retain coverage with no lapse” on my account page where it said the policy had no coverage because it had been cancelled because it wasn’t paid by 12/4.
    Thanks everyone for your input!
     
    NowWhat, Dec 7, 2018 at 3:29 PM
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  10. adjusterjack
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    adjusterjack Guru

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    Your policy expired 12/4. You paid the premium today 12/7. The accident was yesterday 12/6 and you concealed the accident from the insurance company when you made the payment and intend to reveal the accident when you confirm that your coverage has been renewed back to 12/4.

    You can hope but I'm not sure that will fly. Look in your policy booklet for General Provisions, usually the last few pages, and find something that looks like this:

    upload_2018-12-7_17-52-15.png

    It might or might not include words like concealment and misrepresentation but you get the idea.

    I could be wrong. You'll just have to see how things play out.
     
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