I was in a fender bender. No damage to my truck, but my bumper pushed in the handle of her minivan. We both have the same insurance company.

The day after I reported the accident, I received a letter that I wasn't covered for "non-payment" (I had moved and they sent the bill to my old address so I missed the due date). I payed my premium over the phone, but now I have a void where i am not covered (when the accident was). I still have the same policy number, the company still says I'm a Diamond Member (9 yrs) and previously, if i was late, they would "retro" the coverage. I've started receiving bills from a collection agency; it seems the woman I hit is going to town with her claim.

Are they allowed to not cover this? Was I actually "uninsured" at the time? The collection agency is threatening me with notifying the police as well. Am I looking at jail time for this?

  • A collection agency cannot just come after you without a judgement from civil court or other court filing. As well, you never actually have to deal with a collection agency but you do have to deal with the principle. By law in most states, the collection agency has to make the claim in writing by mail. If they are calling you, begin logging it and what was said. Harassment by a collection agency is against the law in most states. They certainly cannot threaten you. It sounds like there is much more to the story than this. Call a lawyer fast! Cheers!! – closetnoc Jul 8 '16 at 3:44
  • Did they apply the payment to the past due balance, or just start you back up? – user662852 Jul 8 '16 at 15:02
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    Find all of your payment receipts, checks, print-outs of online payments, payment reference numbers, or what ever proof you have that you have made the payments and are in good standing. You may need to create a spreadsheet to help. Also, make sure you have ordinary postal service mail on the matter. In the U.S., if your insurance is terminated, notice by mail is likely required. If you find yourself in good standing, then you should be able to argue your point and put this behind you. If you cannot prove your case, then the termination, as determined by the insurance company, stands. – closetnoc Jul 8 '16 at 15:57
  • I guess they "started me back up" since i now have a block of a few weeks where i'm not covered. Same policy number. – user7210 Jul 9 '16 at 16:09
  • I don't answer the phone if I don't know the number, so, I don't know if they are calling of if its other sales calls. I have received bills/invoices in writing. This is all false injury claims on her part. Its up to 9,000. I don't like that they are just paying her out . Why don't i have a say in any of this? Obviously, they are not looking into her claims at all. – user7210 Jul 9 '16 at 16:21

First, read what closetnoc wrote in the comments relating to collections. For a collector to make a false claim about a police action against you is against federal law.

As for the insurance contract, no you are not covered if you did not pay your premium. It's your responsibility to make sure your premium is paid on time if you want the insurance company to be responsible for your liability in an auto accident. Your insurance contract probably also required you to notify the insurance company of your move.

  • If the insurance company accepted the payment for the past due amount, what is the OP getting for that consideration? – user662852 Jul 8 '16 at 15:02
  • @user662852 Gapless insurance coverage as required by law and the conveinance of keeping the same policy. He also completes his requirements under the contract and is not subject to collections. – user2497 Jul 8 '16 at 18:48
  • I attempted to change my address with the company two times. First, online on their website, which didn't work, then (6 months later, when payment was due again/I pay every 6 months) over the phone, which didn't seem to work either. Then this happened, and I got a call from the person at my previous address saying I got a bill, but that didn't show up until after this accident, so, more then a month after the due date. I never received any cancelation notice. No correspondence from the insurance co. at all. All from the collection agency. – user7210 Jul 9 '16 at 16:02
  • @user7210: Sounds like a difficult situation, but unfortunately that probably does not absolve you from your responsibility of paying on time. If you can prove the above, you may be able to get back coverage because you did your duty, but that may be hard to prove. – sleske Oct 6 '16 at 11:47

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