Auto Insurance Claims: auto insurance cancelled me, auto insurance company, company travelers

Question
My auto insurance company "Travelers" sent me a cancelation notice stating my insurance would be canceled on August 6, 2007.  I called them on August 1, 2007 and have name of person I spoke with. She said as long as I make a payment within a week I would be fine.  I said I would be paid on August 7th (one day after cancelation notice), she said fine but I have to pay by that day.  I payed over the phone with a debit card from checking account.  I have confirmation number and the name of the person I spoke with.  She said I was fine until the end of the month and I have to pay the balance when I receive my next statement.  Great! I'm all set.  On September 14th I was hit by a bike at a fast speed. I came to a stop to turn into a parking lot and the bike was going so fast he hit my car and broke my passenger side mirror off the flew a few hundred feet.  No one was ticketed.   The officer said my insurance was fine when he ran it on 9/14/07. I called the same evening to make the claim.  Now my insurance company is saying I was cancelled on August 6,th and disregarding the fact that I documented my conf # and the person and they said I was fine until next statement.  After the claim, they said it was my responsibility and no bill would ever be generated and they also disregarded me when I asked for a taped conversation with the representative. I know what I was told! I would never go without car insurance. Never have, never will!  Now the man on the bike is not happy and I am not sure what is going to happen.  He said I was at fault and I said he was not following the rules of the road.
Can he file a claim against me though no one was ticketed? We have different views of how the accident happened. He is fine and was not admitted to hospital. He has a damaged bike and I have damage to my car.  Well his insurance said his bike was damaged. I moved the bike and do not remember it being damaged but it could be.  My 8 year old saw him grab phone out my hand as he did not want me to call 911 for help.  I am also a nurse so naturally I did not listen to him and had someone call for help.  He called his girlfriend who rushed down to the scene with a camera.  It was strange.  I was so worried about him and my 8 year old watching all this and he was concerned with photos.  Please help!

Answer
Hi Starr,

First things first. Now you know that you can never trust anything that you are told by anyone that works for an insurance company. You should ALWAYS get written confirmation of anything you are told especially when it comes to cancellations and reinstatements.

This is a very difficult situation. Since there is an actual pending claim and the insurance company will deny coverage due to the cancellation, you should contact your state insurance commissioners office to file a formal compalaint.  You should also anticipate that the guy on the bike may try to sue you. If you receive any suit papers you will need to talk to an attorney if your insurance has not been reinstated by then. If it is reinsated and this claim will be covered then your insurance comapny will provide you with an attorney if it becomes necessary.

I hope this helps
Richard Hixenbaugh