Auto Insurance Claims: Auto Insurance Cancelled despite payments each month, then an accident., state department of insurance, cancellation notice

Question
I have had Auto and Home insurance with my company for two years. About 3 months ago I added a new car to the policy and since the have been in a never ending game of catch up where the company says I had one payment past due and one due.

My due date was on the 23rd of each month. On Oct 19 2007 I paid them everything they said I owed, and I was up to date at that point.

I made my November Payment on Nov 30, which cleared my bank on Dec 3.

Then on Dec 22nd (yesterday) I was involved in a car accident, contacted the claims office filed a claim, was given a claim number. My wife followed up with a call and was informed that the policy was cancelled.

She was told to make a payment at that point, which she did, because again we were one month in arrears and one month due.

I found out today that my policy was cancelled 2 days ago.

I never received a cancellation notice at all.

The at fault party in the accident didn't have insurance and apparently don't have any other form to pay for the repairs to my car.

I'm at my wits end, any advice would be most welcome.

Answer
Hi Tom,
If I understand your question correctly, your payments were due on the 23rd of each month.  Many companies do not allow any type of grace period and require that they have the payment in hand by the due date.
Your next payment was mailed on 11-30, which would have been 7 days late.  This would have been sufficient grounds for your company to cancel the policy, although I can't understand why they are stating that the policy was not cancelled until 12-20.
I feel that your next step is to file a complaint with your state department of insurance.
Just type 'yourstatename department of insurance' into your web browser and hit go.
This will bring up many sites in your state dealing with insurance.  Scroll through those sites until you find the one that states 'official site' of the department of insurance and then scroll through that site and you will find a telephone number and an e-mail address for filing a complaint.  This is the department that will be most able to provide you assistance.
I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area