Insurance company issue - not active insurance

[Eali]

Jurisdiction

California

Back on Nov 2nd I made a 6 month contract with Allstar (Freeway insurance). While doing so I made sure to add my girlfriend as a possible co-driver since I was asked by the agent. This is written in my contract by the way.

At the end of Nov. while she was driving near our home, another car hit us. They accepted full liability and thankfully it wasn't anything serious. I tried contacting my insurance to report the incident but it was not that easy. I finally managed to get a hold of the agent but in a 15 second call she just told me that if it was not my fault then I should deal with the other person's insurance. Didn't even take any data.

A week ago I receive a letter from the DMV stating that they have no information on my insurance and if I don't provide any my registration will be suspended. I contact the agent again, through multiple emails and by phone but never got a reply. So I send my insurance information personally to the DMV through the email: VehicleFRProgram@dmv.ca.gov

I dispute the transaction to my bank (still unresolved) and make formal complaint to the consumer affairs (ongoing).

Yesterday my girlfriend received an SR 1 form from the DMV. Now up until this point I assume I have insurance since I have my contract and I normally payed the insurance company. So we fill the form and give my insurance details to the DMV.

Nonetheless I still try to contact the Insurance company Yesterday and after trying from 9 am until almost 2 pm and being bounced off tens of departments I explain the situation to someone. They claim that they actually cancelled my insurance the same day because they never received payment. Yet did not think of informing me. Nonetheless I have my signed contract, and also send them a statement from the bank, so she says she will contact the accounting department and get back at me the same day. She never does.

Additionally she also claims that my girlfriend is not added as a co-driver, but as an excluded-driver. No the concept of an excluded driver was never communicated to me, I clearly asked for her to be added as a possible co-driver and that is what my contract states. So I informed them by email that what is written in their system is of no importance to me, or legally (since I too might write a great number of things in my notebook), legally we are bound by the contract. No reply to that also.

My issue is that the DMV requires you to be insured especially since we happened to have that accident. And as far as I knew I was insured. But still is there any advice on how to deal with this issue, or what the proper next steps should be?

 

[Disabled Vet]

1st of all... Do you have proof that the policy amount was deducted from your banking account? Do you have the copy of the policy when you signed up with the insurance company? That should be enough to prove you had an active policy at the time. If you're missing this information, then you are fighting a losing battle.

 

[Zigner]

Back on Nov 2nd I made a 6 month contract with Allstar (Freeway insurance). While doing so I made sure to add my girlfriend as a possible co-driver since I was asked by the agent. This is written in my contract by the way.

Great - then you have written evidence that your GF was not excluded.

At the end of Nov. while she was driving near our home, another car hit us. They accepted full liability and thankfully it wasn't anything serious. I tried contacting my insurance to report the incident but it was not that easy. I finally managed to get a hold of the agent but in a 15 second call she just told me that if it was not my fault then I should deal with the other person's insurance. Didn't even take any data.

You didn't tell us if you have just basic liability coverage, or if you have "full coverage". If you have just basic liability coverage, then that would be a wise suggestion.

A week ago I receive a letter from the DMV stating that they have no information on my insurance and if I don't provide any my registration will be suspended. I contact the agent again, through multiple emails and by phone but never got a reply. So I send my insurance information personally to the DMV through the email: VehicleFRProgram@dmv.ca.gov

Good, that's what you're supposed to do.

I dispute the transaction to my bank (still unresolved)

Dispute what transaction? This is the first thing you've said about a monetary dispute.

and make formal complaint to the consumer affairs (ongoing).

About what?

Yesterday my girlfriend received an SR 1 form from the DMV. Now up until this point I assume I have insurance since I have my contract and I normally payed the insurance company. So we fill the form and give my insurance details to the DMV.

Yes, that's what she should have done shortly after the accident.

Nonetheless I still try to contact the Insurance company Yesterday and after trying from 9 am until almost 2 pm and being bounced off tens of departments I explain the situation to someone.

Why? Your insurance isn't involved in this.

They claim that they actually cancelled my insurance the same day because they never received payment. Yet did not think of informing me. Nonetheless I have my signed contract, and also send them a statement from the bank, so she says she will contact the accounting department and get back at me the same day. She never does.

Ok, you have proof that you paid and you have a signed contract.

Additionally she also claims that my girlfriend is not added as a co-driver, but as an excluded-driver. No the concept of an excluded driver was never communicated to me, I clearly asked for her to be added as a possible co-driver and that is what my contract states. So I informed them by email that what is written in their system is of no importance to me, or legally (since I too might write a great number of things in my notebook), legally we are bound by the contract. No reply to that also.

Ok

My issue is that the DMV requires you to be insured especially since we happened to have that accident. And as far as I knew I was insured. But still is there any advice on how to deal with this issue, or what the proper next steps should be?

I'm really not clear on what "issue" you are concerned with, but I suspect that you are trying to force the insurance company to reinstate your coverage retroactive to November 2nd. We are not privy to your contract and personal contract review is beyond the scope of this (or any) internet forum. I would suggest that you keep pushing up the chain at the insurance company. Don't rely on email - send good old-fashioned mail that includes a copy of your contract showing that your GF was added as a covered driver and a copy of your proof of payment. You may also wish to consult with an attorney, as a lack of coverage can cause your GF to have an automatic 1 year suspension of her license.

EDIT: I do need to add that if your bank reverses your payment to the insurance company (if that's what you're seeking with the "dispute" above), then you will not have been covered at the time of the accident and your GF WILL have an automatic 1 year suspension of her license.

 

[Eali]

1st of all... Do you have proof that the policy amount was deducted from your banking account? Do you have the copy of the policy when you signed up with the insurance company? That should be enough to prove you had an active policy at the time. If you're missing this information, then you are fighting a losing battle.

Well yes, I do have the bank statement that I also sent to the insurance agent when they claimed that my insurance was cancelled the same day I made it because they didn't receive the money. As I told them, I paid in real time while making the contract.

But I did dispute the charge after receiving the DMV no insurance notice and not being able to contact any of the insurance agents since I thought that I've been scammed by them. But the dispute for the charge was done a dew days ago, they cancelled my insurance the same day I did it back in Nov. according to them. Should I cancel the dispute with my bank?

I also have the signed copy of the insurance policy that again I was sent the same day I paid, back in Nov.

 

[Eali]

Great - then you have written evidence that your GF was not excluded.

You didn't tell us if you have just basic liability coverage, or if you have "full coverage". If you have just basic liability coverage, then that would be a wise suggestion.

Good, that's what you're supposed to do.

Dispute what transaction? This is the first thing you've said about a monetary dispute.
About what?

Yes, that's what she should have done shortly after the accident.

Why? Your insurance isn't involved in this.

Ok, you have proof that you paid and you have a signed contract.

Ok

I'm really not clear on what "issue" you are concerned with, but I suspect that you are trying to force the insurance company to reinstate your coverage retroactive to November 2nd. We are not privy to your contract and personal contract review is beyond the scope of this (or any) internet forum. I would suggest that you keep pushing up the chain at the insurance company. Don't rely on email - send good old-fashioned mail that includes a copy of your contract showing that your GF was added as a covered driver and a copy of your proof of payment. You may also wish to consult with an attorney, as a lack of coverage can cause your GF to have an automatic 1 year suspension of her license.

EDIT: I do need to add that if your bank reverses your payment to the insurance company (if that's what you're seeking with the "dispute" above), then you will not have been covered at the time of the accident and your GF WILL have an automatic 1 year suspension of her license.

I have full coverage.
I disputed the transaction because I couldn't get in touch with any of the insurance agents, and the DMV was informing me that I was not insured as far as they know. Not being very sure on whats going on I thought I should get insurance from another company ASAP and that I was scammed by Freeway.

So when you say my insurance is not involved. I am not sure what you mean. If I receive a letter from the DMV claiming they will suspend my registration because I have not insurance, I think I should contact them to see what's going on. And it ended up being useful since I learned that they had cancelled my insurance (not sure what that even means, since I have the signed contract) while at the same time charging me for the full six months.

 

[Zigner]

I have full coverage.
I disputed the transaction because I couldn't get in touch with any of the insurance agents, and the DMV was informing me that I was not insured as far as they know. Not being very sure on whats going on I thought I should get insurance from another company ASAP and that I was scammed by Freeway.

So when you say my insurance is not involved. I am not sure what you mean. If I receive a letter from the DMV claiming they will suspend my registration because I have not insurance, I think I should contact them to see what's going on. And it ended up being useful since I learned that they had cancelled my insurance (not sure what that even means, since I have the signed contract) while at the same time charging me for the full six months.

Your post was fairly disjointed and I was trying to avoid making assumptions.

I was pointing out that your insurance is not involved in your ability to recover from the other driver.

You are likely in a good place in the long-term based on your contract and proof of payment, but you will need to have your contract reviewed in its entirety. You should keep working your way up at the insurance company and may wish to get an attorney involved.

 

[Eali]

Your post was fairly disjointed and I was trying to avoid making assumptions.

I was pointing out that your insurance is not involved in your ability to recover from the other driver.

You are likely in a good place in the long-term based on your contract and proof of payment, but you will need to have your contract reviewed in its entirety. You should keep working your way up at the insurance company and may wish to get an attorney involved.

Apologies for that, you are correct.
I am still waiting for them (insurance agent) to contact me, as they said they would.
I will try calling again, but I'm not sure what to ask! This is an odd situation and the agents I've spoken up until now seem less competent than me when it comes to answering questions or even figuring out whats going on. Do you have any suggestions as to what exactly I should communicate to the insurance company? There are two possible ways this might go, I get reimbursed the amount I paid them. Which leaves me without insurance for the period of the accident (at no fault of my own). Or I guess re-instate my insurance, which is better for me, so I should make sure they do the latter, correct?

 

[Zigner]

Apologies for that, you are correct.
I am still waiting for them (insurance agent) to contact me, as they said they would.
I will try calling again, but I'm not sure what to ask! This is an odd situation and the agents I've spoken up until now seem less competent than me when it comes to answering questions or even figuring out whats going on. Do you have any suggestions as to what exactly I should communicate to the insurance company? There are two possible ways this might go, I get reimbursed the amount I paid them. Which leaves me without insurance for the period of the accident (at no fault of my own). Or I guess re-instate my insurance, which is better for me, so I should make sure they do the latter, correct?

Read this very carefully: If you were uninsured at the time of the accident, then your GF WILL have her license suspended for a (minimum) period of 1 year, followed by a requirement to have on file an SR-22 (thus increasing her insurance premiums). Yes, you need to be fighting for reinstatement.

I would suggest that you stop talking to "agents" and start working your way up the corporate chain.

EDIT: If your GF had her own liability insurance on her own vehicle, then that coverage may be able to be used to fulfill the insurance requirement for the state. She should check her own coverage related to use of other vehicles.

 

[army judge]

Back on Nov 2nd I made a 6 month contract with Allstar (Freeway insurance). While doing so I made sure to add my girlfriend as a possible co-driver since I was asked by the agent. This is written in my contract by the way.

You will be very surprised by what the following website reveals:

License Details

Search for YOUR alleged insurance carrier and the TRUTH will be revealed.

Do you have any suggestions as to what exactly I should communicate to the insurance company?

Time for YOU to communicate with CA insurance authorities, mate.

License Details


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