Auto Insurance Claims: Forced Placed Insurance-Texas, Force Placed Coverage

Question
My car ins. lapsed for 6 weeks from July to August 2010.  My credit union was informed on Aug 30th of my new coverage.  In November 2010 they placed forced placed insurance on my two cars.  I even went in to speak to them and offered to pay what my insurance would have cost during the lapse.  I believe this placement at such a late date is punitive and would like any case law that would state same.  Thank you, Phyllis Adkins

Answer
Phyllis,

  I would have to see the loan paperwork to make an educated guess on what might have occurred outside the contract for a case law search on such causes of action.

  I do know that you seem to be taking it perfectly as it was intended.  It is indeed punitive for you, but risk reducing for the credit union.  I would bet the contract allows them to force place coverage if you ever lapse, whether they get notice before or after, and it probably says they can put it on there whenever they feel like it.  It's sort of like them saying "Well, you let it lapse once, so what's to say you won't let it lapse again?  We aren't willing to take that risk now that you have proven unable to maintain constant coverage."    

  There likely is no case law for your issue because what they did is probably not negligent or in breach of their contract with you.  Surely there is somebody that can make an exception, but I think that is what you would have to get in order to get out of the increased cost of insurance that the placement has added to your bill.  It is not fair in my opinion, and is why I think I'll pay cash for my next vehicle.