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Insurance Law/what will happen?


Ok, so I hope you know the answer to this. and if you can I need an answer based on current laws, policies ect.

Ok, right now, I have auto insurance with Century 21. I missed a payment and they added a $15 late charge. I can handle that. But when I called them to pay my payment plus late charge they doubled the payment to $182 and some cents! And there is no way I can do that. And it will cancel on the night of the 25th.

So what I did was to call another company: Progressive, and get a quote. I still don't have any money to pay till March. Which means for about 3 days, Feb 26th, 27th and 28th I won't have insurance.

So anyway, on the phone talking to Progressive, they asked me if I am insured now. I said yes. And I am FOR NOW. But they didn't ask and I didn't tell them, about the lapse in coverage later in the month.

So what I want to know is this: Come March 1 when I do pay Progressive, if they should ever find out that my coverage lapsed, what will happen? Will they drop my coverage? Will they go up on my rates or tell me what a bad girl I am and let that be the end of it?

P.S. I am making a point of NOT driving for those 3 days without insurance. I do realize what a dangerous practice that is. And I live in Florida.


Sorry to hear about your problem.

Century 21 was probably billing you for the past due payment as well as for the current month so that is why it looked like it was doubled.

The requirement to have insurance is premised on what are called "financial responsibility laws" passed by most states and simply mean that you are required to have liability insurance to cover other drivers if you are at fault in a wreck with them. If you don't drive ... you don't have to have insurance.

It sounds like you answered the questions truthfully when asked by Progressive so you don't have worry about them rescinding the policy based on any mis-statements from you. You might let them know that you won't have the funds available until you get paid and many times they will just bill you for it.

Hope this helps.

Kevin Hromas
Kevin Hromas & Associates
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Kevin Hromas


I am a licensed, executive general adjuster currently holding a Texas resident P&C license (614250), New Mexico non-resident all lines license (248774), Oklahoma non-resident P/F/M license (A299561), Florida non-resident P&C license (E117051) and a National Flood Insurance Program certification (06040100). My areas of expertise involve property and casualty issues in both residential and commercial policies with regards to claims practices and issues. I deal extensively with Lloyd's of London commercial policies and various domestic carriers for residential policies.


After a 20 year career as a General Contractor, I was employed by Allstate Insurance as an adjuster in Texas, holding various postitions within the property claims department. After leaving Allstate, I specialized in handling losses associated with major catastrophes through-out the country. (Hurricanes Isabel, Charlie, Wilma, Katrina, Ike, etc., hail storms, floods.) I am currently retained as an expert by multiple insurance defense firms in Texas for issues in litigation. I am also a certified Umpire for formal appraisals.

Member - Society of Registered Professional Adjusters Fellow - Council on Litigation Management Member - Property and Casualty Association Member - Texas Independent Insurances Adjusters Association Member - National Association of independent Insurance Adjusters Member - Houston Claims Association

Claims Magazine ( and then search 'Kevin Hromas' for a full listing of articles and quotes.),,

JD - University of Houston Law Center - 1992 BA - Southwest Texas State University - 1980 AA - South Plains College - 1977 PLCS - Personal Lines Coverage Specialist

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Certain Underwriters at Lloyd's, London, Fulbright & Jaworski (Law Firm), Bracket & Ellis (Law Firm) Thamm & O'Briant (Law Firm) Sheehy, Ware & Pappas (Law Firm) Walker, Wilcox and Matousek (Law Firm) Financial Guarantee Underwriters

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