Expert: Ron Cercone - 3/6/2009

Question
i was told by someone i know who works at progressive that there is a 30 day grace period before they can terminate your coverage...i am being sued directly by the other driver and they say they won't cover it...now is it true they can just cancel it out of nowhere? do i have to sue my old insurance company? the car accident was over 3 years ago but i was just about to file bankruptcy because i can't afford the judgement...is there something that can be done?

Answer
Hello Eammon,

You definitely need to get a consultation with an attorney, especially if you are considering bankruptcy. You want one of the "accident injury" type attorneys in the yellow pages. Also get a consultation with a bankruptcy attorney. Give the attorney $75.00 for a half hour of his time if you have to. This is a life changing decision you are making here.

You need to know if you file bankruptcy before there is a court judgment, will it protect you from a judgment after the bankruptcy? I don't think it will. And I think you can only file bankruptcy once every 7 years, so you better make the right decision about when to file bankruptcy.

As to the cancellation, yes most insurance policies give a 15 or 30 day grace period. If you have a copy of the policy to prove the cancel date and some proof you mailed the check, or that it was cashed or that the insurer received it, then an attorney might take your case to sue your own insurer for bad faith. Even if the policy was cancelled, if the insurer got the check, they may have reinstated the policy and cashed the check. That cashed check will show the date they cashed it. Get a copy from your bank. Go to UClaim.com to download a free auto policy copy to read the cancellation provisions. And also look at the UClaim eBook entitled "DENIED AUTO AND MARINE INSURANCE CLAIM ADVICE AND HELP
Subtitle: DELUXE VERSION (W/APPENDIX)".