insurance lapse

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Latest post Wed, Jun 11 2008 8:42 PM by blondee1. 8 replies.
  • Mon, Jun 9 2008 9:34 PM

    insurance lapse

    I bought insurance on 11/09/07 and paid through 5/09/08, my son had an acciedent on 5/09/08 and the insurance says that i did not have coverage on the 9th and that they aren't going to cover the accident because of the lapse in coverage. I was under the impression that i had coverage until the 10th. Is there anything legaly I can do about this or do I have to take the loss?
  • Tue, Jun 10 2008 1:37 AM In reply to

    Feedback [*=*] re: insurance lapse

    Read your contract for coverage. Most policies clearly state that they expire at 12:01 a.m. Get into an accident at 12:02, you're uninsured.
  • Tue, Jun 10 2008 10:14 AM In reply to

    • mudpie
      Consumer
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    • WV
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    re: insurance lapse

    Read it carefully. Some policies offer a 30 day grace period to renew.
  • Tue, Jun 10 2008 12:51 PM In reply to

    Disagree [)*(] re: insurance lapse

    No. I doubt if you'll find anything like a "30 day grace period" in any policy.

    Read your own, mudpie.

    However, insurance companies are required by state law (varies by state) to send proper notices of non-renewal or cancellation for non-payment.

    The notices will also specify 12:01 AM of the cancellation date.

    The notices (again, depending on state rules) can be sent ahead of the expiration saying coverage lapses at expiration if you don't pay the next premium (usually a combination invoice and notice) or can be sent when payment is not received.

    Notices are typically 7 days, 10 days, sometimes 15 days (varies by state).

    Notices are often timed to get to you before the expiration so the policy can legally lapse at expiration.

    Some notices are timed so that you do have some days after the lapse to pay the premium and the company will reinstate provided there were no claims during the period of lapse.

    In other words, if you have an accident the day after the lapse, then pay the premium after the accident, you won't have coverage.

    Blondee, did you receive and ignore billing/non-renewal/lapse/cancellation notices?

    The standard practice in the insurance industry is that you don't get to keep the coverage if you don't pay for it and you have to pay for the next period before the current period expires.



    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Tue, Jun 10 2008 8:54 PM In reply to

    re: insurance lapse

    They renewed the policy on the 12th but apparently there was a lapse in coverage. So am i right to assume that this accident will not be covered.
  • Tue, Jun 10 2008 9:03 PM In reply to

    re: insurance lapse

    I did receive a bill and for payment and it said that the i had coverage until the 9th. That is all i recieved but no non-renewal, lapse, cancellation notices. My agent was out with strep and I called her to see as to why my policy went up and was told that she was out sick. That is why I waited until the 12th to make payment.
  • Tue, Jun 10 2008 9:08 PM In reply to

    re: insurance lapse

    The insurance company did ask for witnesses phone numbers as to when the accident occured and for me to give a written statment as to why I feel that they should pay for the accident. In your oppion should I do this?
  • Wed, Jun 11 2008 10:36 AM In reply to

    re: insurance lapse

    I've combined all your questions in one place to make it easier to follow along.

    "I did receive a bill and for payment and it said that the i had coverage until the 9th. That is all i recieved but no non-renewal, lapse, cancellation notices."

    If the bill makes it clear that you had coverage until the 9th UNLESS you paid the premium, it might be sufficient notice of lapse under your insurance laws:

    http://www.mscode.com/free/statutes/83/011/index.htm

    The statutes aren't entirely clear to me so you should check with the insurance dept:

    http://www.mid.state.ms.us/

    There are likely to be insurance department rulings or even case law that applies.

    Proper notice of lapse is a critical issue here.

    "My agent was out with strep and I called her to see as to why my policy went up and was told that she was out sick. That is why I waited until the 12th to make payment."

    Well, now you know why that wasn't a good idea. Presumably you got your bill some time before expiration. For future reference, if you don't like the rates, shop around for lower rates (before expiration) if you can get them, but never go past the expiration date to make the payment.

    "The insurance company did ask for witnesses phone numbers as to when the accident occured"

    Did the police respond to the scene? If yes, the time is recorded on the police report and you should get yourself a copy.

    "and for me to give a written statment as to why I feel that they should pay for the accident. In your oppion should I do this?"

    You didn't mention anything about the accident itself but if your son was at fault (or even just having the finger pointed at him) and other people were injured, this could be a major financial disaster and you and he should be discussing this with an attorney before making any statements to anybody.

    But if he clearly wasn't at fault or it's a single car accident, or just vehicle damage, you probably have nothing to lose by complying since the presumption is that you don't have coverage.

    "They renewed the policy on the 12th but apparently there was a lapse in coverage. So am i right to assume that this accident will not be covered."

    The coverage was effective the 12th which was the day you paid the premium. Yes, there was a lapse, and you do not have coverage for the lapse period.


    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Wed, Jun 11 2008 8:42 PM In reply to

    re: insurance lapse

    Thanks for the advise that you have given me. May God bless you. Thanks again.
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