Expert: Richard Hixenbaugh - 11/8/2009

Question
Hi,
I was in a wreck where an uninsured motorist  hit and totaled my truck. I was not at fault but had to file on my insurance because the party at fault had no insurance. Since my vehicle was totaled I had no other vehicle to drive and also my foot was fractured and I was on crutches. 2 months later I go to get insurance and find out my insurance has thripled because they said I lapsed . I don't understand how this could be if they totaled my truck and I notified them I had no vehicle but of course they have no record of my call. So now I am wondering can I have the lapse removed from my record because they totaled my vehicle and now say I lapsed last month when my truck was declared a total in aug.

Answer
Hi Tonya,

The claims department at an insurance comapny does not communicate with the policy services side of the company. Just because your car is totaled does not automatically cancel your policy. You must call your agent or the company directly to cancel the policy. If after your car was totalled you did not cancel the policy te company was still expecting you to pay the premium. If you did not pay the premium, the insurance company would then cancell the policy for non-payment. That is why they are showing that your policy lapsed.

However, even if you had cancelled the policy when your car was totaled, and if it was more than 30 days before you went to take out new insurance, you would pay more for having a lapse in coverage over 30 days. It's not fair but it is the way it is done.

I hope this helps
Richard Hixenbaugh