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Laps in coverage

by Rita

I have been in accident (my fault)and reported it to my insurance company. The claim was accepted and I delivered my car to the shop recommended by my insurance.Next day the shop received approval and started to work on my car.

I contacted claim department again in a week with some question and have been helped. Than, after 10 days, I suddenly have been informed that I had laps in my converge due to non payment.The person from customer support told me that if they would receive my payment they could re instead my policy, but the money did not come.

The same day (when I had this phone call) insurance company cashed the check I mailed to them a few days ago in response to their bill. Yes, it was later than supposed to be, but it was cashed before this conversation!

My car is in shop, half way done. Shop owner gets the phone call with the request to stop working on my car.

I have no idea what to do at this point - I did not authorize any repair,have not seen an estimate, did not have a chance to shop around and so on.

When I mentioned that they already cashed my check, they say that the check will be returned to me.

I'm sorry for my frustrating explanation :(


Hello Rita,

I hope you are enjoying your weekend. I am sorry for the delay. I was doing some digging around on this matter.

It is pretty well settled law that once an insurance company accepts payment (accepts and cashes your check) then they have waived their right to decline your coverage. The insurance company will try to give you the run around and try to give you your money back.

Do not accept (cash the check). Talk to an attorney or file a complaint with the office of the insurance commissioner (or department of insurance, depending on your state). They will have to correct the situation, or explain in detail why they believe you are not entitled to coverage.

Talking to lawyer (having them draft a letter) sometimes it is all it takes to have insurance companies and adjuster to reconsider their position and look more into their position. As you know, some insurance companies will try to get smart with you and give you the run around and try to claim that you did not pay on time.

They know better than that, they are not to cash payment if they don't want to waive this argument. That is the reason they have legal departments.

In any event, document you claim (in writing) and talk to the office of the insurance commissioner. In the mean time, try to mitigate your damages (do not rent a car waiting for them to make decision) or leave your accruing charges.

This can come back and bite you. You want to appear reasonable and explain that you pay your bill on time, but it did not reach them on time. They cashed the payment and now they want to return it to you to not have to pay for claim they clearly owe.

Good Luck,

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