QuestionHi,
On March 25, 2009, my husband contacted an insurance agent to reinstate our auto and home insurance, which had lapsed. The agent took our information and a credit card number, and told my husband that he would have us "covered by tonight or tomorrow." The next morning, I was in a car accident on my way to work. My husband contacted the insurance agent from the night before, who basically said, "Oh, that's too bad."
I then contacted the insurance company, who started an investigation, though they never spoke to my husband. The agent called our home a couple of days later, denying that he had ever spoken to my husband on 3/25/09, though, when pressed, told me that it did not matter what he had told my husband, we were not going to be covered. I contacted the insurance investigator, offering to supply phone records to proved that their agent was being dishonest, but they told me that it didn't matter, as the agent had never written the policy. The investigator also told me that the reason that they were denying coverage was that when giving my recorded statement, I did not use the specific term, "auto insurance."
Do I have any recourse with this insurance company? Is there any way I can get them to cover this accident? I did contact the California insurance commissioner, but since the agent did not charge our credit card, they cannot help me.
Thank you for any advice you can provide.
AnswerHello Michelle,
First of all, I'm not an attorney and I don't know all the law on this, so check with an attorney. But I know that a verbal contract can be as binding as a written contract. I also suspect that the a verbal contract would be more difficult to prove.
1. Make sure your "policy lapse" went beyond the "grace period". Most policies continue coverage after the lapse date if the payment is received 15 to 30 days after the cancel date.
2. Get a written copy, transcript" of the recorded statement. They have to give it to you free of charge.
3. If you are going to discredit the agent, you have to come up with evidence better than testimony. Although testimony is admissible in court, its up to the judge or jury to decide who is more believable. That alone is not enough for most attorneys to take your case.
This agent could have helped you by simply giving you a written receipt or even stating that you authorised payment. But apparently he is more concerned about his "loss ratio", than helping you. Having a credit card payment proof would make this much easier. But don't give up.
Call the credit card company to see if the agent attempted to make a charge or even got "pre-authorization".
Start building a file with written and recorded communication. The idea is to catch him or the insurer in a lie or some wrong doing and to have hard evidence.
You may have to be sneaky and set up the agent or personnel in his office in order to catch him in a lie. For example, fax him a letter asking him to call or write you and explain this or that. Don't answer the phone, let him leave a recorded message. (That's admissible in court).
4. If you want to play hardball, if an attorney won't take the case, and you don't want to be your own attorney in a higher court, file a small claims lawsuit and subpoena the agents phone records so you can see if he attempted calling the credit card company. Make life a little uncomfortable for him.
5. Get the adjusters denial in writing and go from there. His written explanation may be completely different than his verbal explanation. Look for contradictions between his denial and your agents denial.
Check out the table of contents for the eBook entitled "DENIED HOME AND BUSINESS INSURANCE CLAIM ADVICE AND HELP" at UClaim.com http://www.uclaim.com .
