If your auto insurance has been canceled and you reinstate it in 20 days, but you have a small accident happen

Question

My case is a little bit complicated. My insurance with GMAC was canceled on 4/24/2008 and I was involved in an accident on 5/15/2008. I reinstated the policy in the same day after several hours the accident happened, and it was accepted and my money was charged. Now GMAC guys said they were not going to cover the cost and I asked them why they reinstate my policy without helping me out this, they did not give me any answers. I also said I can pay the damage myself but I want my insurance payment back. But I feel like they neither do not want to give me a full refund ($495 for six months term) nor want to cover the accident. What should I do?

The thing makes me suck is I did not realize the damage and left the scene and the police found me later and charged me as hit and run although unattended. No one got hurt, and no big damage. I already got a lawyer to help me on the court but now the insurance company gave me the issues.

Does any one have good advices for me? I truely appreciate.

Answer 1

This situation comes up a lot. If you reinstated the policy after the accident there is no coverage. If you had reinstated in the morning and had an accident in the afternoon you would have been OK.

In most states you would be due a refund of the unused 6 month premium if you cancel the policy. You would not be entitled to a refund for the period of 4/24/08 to 5/15/08.

Good Luck

Answer 2

When your policy is cancelled that means there is no coverage from the date of cancellation to the reinstatment time.

Why would anyone pay for insurance if they can pay after they have an accident and be covered??

The company has done nothing wrong here.

Will your electric company continue service if they arent paid???

This is a learning exp. Try to keep up on your bills so this dosent happen again. Good luck!

Answer 3

um.. what on earth did they do wrong.  Why should you get your money back for the policy term when they provided coverage all the way until you stopped paying?  They would have covered any accident you got in before 4/24... why would you get all that money back?  We all dont get our money back at the end of a policy period if we dont use them..

obviously you missunderstand what "reinstating" your policy is.  It doesnt just erase the fact that your policy was cancelled.. it just starts coverage again after that lapse in coverage...   If we could all just "reinstate" our policies and backdate coverage whenever we wanted none of us would make payments in a timely manner.

Wow- hit and run ,  not having active insurance- it sounds like you have some maturity issues to deal with. Maybe its time to stop blaming everyone else and grow up and accept responsibility for your actions.