Insurance company will not pay for car accident even though i was insured. What Are my Rights?

Question

I was involved in an accident a year ago. I had liability insurance i paid every month for 6 months up until the accident. When the insurance company investigated the accident they said that they were not paying for the damages of the driver in the other car because i failed to mention an accident i was in upon purchasing the insurance. To my knowledge it is illinois law for the insurance company to do a motor vehicle report within 48 hors of the policy. They should have seen the accident their and either refunded my money then or made changes to my premium. I am being sued for $4000 now my lisence if suspended and im in andout of court every other week paying thousands of dollars in fines. And the company kept the hundrends of dollars i paid them every month. I tried contacting department of insurance and they arnt any help. Please help me.

Answer 1

Reason for Cancellation

During the first 60 days of a new policy, your company may cancel for almost any reason. Illinois law allows companies 60 days to look at your risk and decide whether they want to issue you a policy.

After your new policy has been in force more than 60 days, or if you have a renewal policy, your company may only cancel you for one of the following reasons:

If at any time:

you failed to disclose fully your motor vehicle accidents and moving traffic violations for the preceding 36 months if called for in the application;

Notice

The company must send you a written notice explaining why it is canceling your policy. The notice must also explain two important items:

You have the right to appeal the cancellation as explained below under Hearing Rights.

  

You may be eligible to buy insurance from the Illinois Automobile Insurance Plan if you cannot find coverage elsewhere.

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So, if you continued to pay premiums and your policy was never cancelled by the carrier AND you had coverage at the time of loss, they don't have a leg to stand on.  You need to make sure that you DID have coverage at the time.  They can cry liar liar all they want, but if coverage was in force, then it was in force.  Do your home work and make sure you have proof of payments during those six months. Call your agent and ask if the policy had been cancelled and if so request a copy of the notice. If they can't provide that, then get a lawyer.

Answer 2

I would like to recommend you grab as much as resource as you can before making decision,here is a good place for that purpose.http://carinsurance.expertsupport.info/a...

Answer 3

Google the law covering this or get a lawyer

Answer 4

Nope, it's not up to them to do the report within 48 hours.  They don't have to "catch" you in your lie.  Material misrepresentation is just that - material misrepresentation.  

You have the right to complain to your state insurance department, in writing, about the declination of your claim.  If "they aren't any help" means, they've investigated, and found that the insurance company followed state law, well, then the company is in the right.

You could always also ask a lawyer's opinion.

Answer 5

Your best bet is to talk to a lawyer. I'm sure you can find a few that would offer free consultations.

Answer 6

Refer this to an attorney, reread the contract you signed when you got the insurance. If you neglected to adhere to every condition, including your neglect to report a prior accident , don't go blaming someone else. You are the dude who violated the signed agreement. If you are in and out of court, you have only yourself to blame.

Answer 7

You should refer to your policy.  Read the part that states they have the right to deny payment if you provide them with false, deceptive, misleading or incomplete information on your insurance application.   However, this is usually limited to optional coverages.  In most states, the insurance company cannot deny the compulsory liability limits.   You MAY need to hire an attorney, but call back and ask to speak to a supervisor.  They should have sent you a formal denial of coverage letter citing the policy language that allows them to deny coverage.

Answer 8

sorry but it is YOUR responsibility to inform the company of ALL accidents and violations BEFORE taking out the policy.  Yes, most companies do run your reports after the policy is issued, but I am not aware of any law that states they HAVE to.  If you read your contract with the company it DOES state that you MUST disclose and that all information you have given them is true.  So if you did not tell them about it, then YOU are in violation of your contract.  Honestly this sounds like a c**p company who is using this as a loophole to get out of paying a claim.  Most decent companies would most likely pay the claim and non renew your policy.

Answer 9

Better get a lawyer.

Answer 10

Talk to a lawyer!