Auto Insurance Claims: Car Accident/Insurance, notice of cancellation, wrecked car

Question
We insured a new car, but after accident they tell us we aren't insured. I had 2 cars insured, 1 full and 1 liability. I bought another car and the salesman offered to call my agent and he did so. The next day my daughter was involved in an accident with the new car. I called my agent, who at that time told me that I only had liability ... he said because the car salesman failed to tell him there was a lien on the car and because the car that I was replacing on my policy only had liability. Then the next day they tell me that I have no insurance at all on ANY of the vehicles. They said that I didn't pay my premium, that they sent me notices to pay and a notice of cancellation. I have never gotten any notices or letters from the insurance company! They said they took money I had paid on the old car that had liability, put it towards what I owed on the car that had full, cancelled me out on both cars, and that I had no policy with them at all when the new car was called in, so it wasn't covered. This leaves me with a ticket for no insurance, having to not only pay for my new wrecked car, but also the other car. My agent tells me that he did not know that I wasn't covered. How can this happen?! I did everything I was supposed to do and I have never gotten any letters or notices from the insurance company. Please help? Please tell me what I can do. I can't afford an attorney.

Answer
Brenda,

Sorry to hear about our situation.  There are very specific requirements in each state regarding the manner in which an insurance policy may be canceled.  Typically they need to send a certified letter at least 30 days prior to cancellation but it's different in each sate.

I suggest contacting a local attorney in your state to determine if the carrier did in fact validly cancel your coverage.

For what it's worth, the insurance company's activities sound very fishy to me...

Best regards,

Ernest Ferraro