After I called my insurance company I found out that my insurance was lapsed. I didn't know that there was such a problems since they didn't notify me nor by mail or phone and I've been with them more than a year. They are saying that my payment was diclined, but I don't know how it possible since I just updated my info. I'm not sure if I have a grace period.
Couple of things you should check.
1 - Call your state insurance department to see if they can point you the statutes and insurance department rules that regulate how the insurance company must notify you of premiums due, non-payment or lapses.
2 - Then read your policy to see if it conforms to those rules.
3 - You also have to carefully examine your policy dates (from and to) to see if you rode the expiration to closely or missed it completely by the time you updated your information.
Insurance companies have some rather strict procedures for billing, late notices and non-pay cancellation (and the record keeping that goes along with it) just so that they can avoid getting sued by a policyholder when there's an accident after the policy lapses.
So, right now the damages worth $1000 but the guy claims that he has medical problems and he would need a treatment for 2 years! He says that he has pain in his legs. He is claiming his insurance company, but they just called me and said that they will run after me to pay off. The guy didn't want to discuss and options of me paying him for the damages he just hired an attorney and didn't even tell me. All, that I found out from his insurance company.
I'm betting that the $1000 is just for the damages to his car and that's all his insurance company cares about having you reimburse them for.
I would never be able to pay for his medical problems. In fact, he is just lying!!! I barely, hit his car and he was completly fine and didn't go to the hospital after an accident. From the picture that I have of his car you can see that only damage that he has is a little paint scratch, that's it.
Maybe you are right. But he sees you as a prize pigeon with no insurance who might get scared into shovelling money his way.
why I have to pay for his "medical problems" that never exist?
My quetion, is how I can defend myself?! I don't have money to hire an attorney, plus it is unfair he just trying to rip me off!
Frankly, you don't have to pay a nickel until and unless a court of law says so. Meantime I suggest you keep your mouth shut and not talk to him or his lawyer or anybody else. If you get served a lawsuit, you then can get to figure out what to do.
I gave my insurance card to policeman and he didn't say that there is any problems with that nor gave me any tickets for unvalid insurance.
That's because the officer relies on your card. He can't be calling everybody's insurance company to verify coverage every time he responds to an accident.
However, it's possible that you might get cited for all that once the authorities do find out that you didn't have insurance at the time of the accident.