Car insurance problems

[Alan L.]

Yes, she has proof of insurance and I now have in my possession all kinds of documents from the insurance company stating that her first payment was received, that coverage started on Oct 6th, etc. And the letter dated Oct 27th which says due to the bank "not honoring" her payment the insurance is rescinded effected Oct 6th. She received this in the mail 11/2, the Monday after the accident.

Point is, the insurance company acknowledged receipt of payment and she had no reason to believe there was a problem in the interim, otherwise she would have corrected the problem with the routing number.

I cannot imagine that the software the ins co uses does not immediately know the routing number for a given bank is incorrect as soon as they enter it. Even a cheap program like Quicken knows immediately if the routing number you give it for a bank is wrong, as they have a database with all the correct routing numbers in it. And its JP Morgan Chase, the biggest bank there is, so its on everyone's list.

Somebody sat on it for 3 weeks, and this was probably intentional so that they would never have to pay a claim during that 3 week period.

 

[MarkV]

Yes, she has proof of insurance and I now have in my possession all kinds of documents from the insurance company stating that her first payment was received, that coverage started on Oct 6th, etc. And the letter dated Oct 27th which says due to the bank "not honoring" her payment the insurance is rescinded effected Oct 6th. She received this in the mail 11/2, the Monday after the accident.

Point is, the insurance company acknowledged receipt of payment and she had no reason to believe there was a problem in the interim, otherwise she would have corrected the problem with the routing number.

I cannot imagine that the software the ins co uses does not immediately know the routing number for a given bank is incorrect as soon as they enter it. Even a cheap program like Quicken knows immediately if the routing number you give it for a bank is wrong, as they have a database with all the correct routing numbers in it. And its JP Morgan Chase, the biggest bank there is, so its on everyone's list.

Somebody sat on it for 3 weeks, and this was probably intentional so that they would never have to pay a claim during that 3 week period.

Alan, I will again vote for the Insurance Commissioner. I got hit by a big rig and the policy number from the accident was for the trailer not the rig. Had no idea where to go and the Insurance Commissioners office worked it out in a phone call.

You and your daughter have documentation stating her coverage started Oct. 6th, you are home free. Make the call.

Glad your daughter is OK. Those kind of situations don't always work out as well.

MarkV

 

[dmccarty]

Sounds like you have proof of insurance and they are trying to bluff their way out of paying the claim.

While the insurance situation is a PITA and would more than tick me off, if you daughter was able to walk away from the accident, all is good.

We still have issues from our accident in Feb. And it could have been much more badder than it was so we are thankful. We are not done with the insurance side of things but so far so good.

Once you get the insurance company to realize the errors of their ways, remember they have to pay for the value of the car that was totaled as well as the costs to drive the replacement car off the lot. They pay taxes, title, etc. At least they did for us.

We also spent quite a bit of time on the Internet getting comparable prices from Edmunds, Blue Book as well as dealers. We knew what our car was worth if we had to fight the insurance company over the settlement. Luckily we did not have to fight since they did what they were supposed to do.

Later,
Dan

 

[two_bit_score]

The insurance companies in Texas are getting away with anything they want to these days. The Texas Department of Insurance is worthless as far as acting on consumer complaints. Lawsuits are worthless now due to 'tort reform'.

Usually after coverage is 'bound' they have to keep it in force until they give you notice but too many fly by night insurance companies allowed to operate in Texas nowadays.

 

[LBrown59]

Sounds like you have proof of insurance and they are trying to bluff their way out of paying the claim.
We also spent quite a bit of time on the Internet getting comparable prices from Edmunds, Blue Book as well as dealers. We knew what our car was worth if we had to fight the insurance company over the settlement. Luckily we did not have to fight since they did what they were supposed to do.
Later,Dan

The exception rather than the rule.

 

[LBrown59]

The insurance companies in Texas are getting away with anything they want to these days. The Texas Department of Insurance is worthless as far as acting on consumer complaints. Lawsuits are worthless now due to 'tort reform'.

Usually after coverage is 'bound' they have to keep it in force until they give you notice but too many fly by night insurance companies allowed to operate in Texas nowadays.

A DOI is a figgure head or a puppet of the insurance industry controlled by insurers.

 

[jwstewar]

OH, LB, I wish that were true. We have to jump through so many hoops to make the Ohio (and other states) Dept. of Insurance happy, that it isn't even funny. You wouldn't believe the amount of time and money we spend doing things to make auditors and the insurance regulators happy. I probably spend 20% of my time explaining to auditors and the like what controls we have in place and how we do stuff. Worst part is, it just isn't me, there are tons of us here doing this. I see it from me being a computer programmer all the way up through the CEO answering to their calls. You....sensoring myself here now.....

Now, speaking from personal experience, I think most insurance companies try to treat people fairly. I've had very good experiences dealing with insurance companies for the most part - both my own and others through accidents. Only one instance of a hail storm I think they jerked us around and wouldn't replace the roof on our house because "it wasn't damaged enough." They replaced it 2 years later when the house burnt to the ground. The sad part of why the insurance companies have to be so strict and stuff, is because of people not being honest and fair with them and trying to rip them off. I've seen it done, I've had family members collect on the same windows damage by hail storms 3 times w/o ever replacing them. They are still in use today.

 

[sellercreek]

I may be wrong, but banks don't have a bunch of routing numbers -- they only have one. It is part of their trying not to honor their obligation by confusing the situation.

 

[2manyrocks]

This doesn't sound right. Every bank has an ABA routing no. that identifies the bank--it's the first no. printed on her checks. The next number would be her individual account no. Then the last number on the check is the check no. If her debit card has been working for other purposes, I don't see how in blazes the insurance company wouldn't have debited her account.

Did the debit show on her account statements from the bank?

She needs to talk with the part of the bank that knows the mechanics of the debit card system and can tell her what specifically the problem is. The tellers and loan officers won't know. It will be someone in bank operations.

I think the insurance company will have some difficulty getting by with this. Maybe she needs to consult with a lawyer. I have no clue about TX law--bad faith in denying a claim can be real trouble for an insurance company in some states.

 

[Western]

Ooh, that's a blood boiler for sure. Glad there were no serious injuries.

If she has the letter that says thanks for the payment, you would think taking that to the state insurance commision would be a good step. Given there are no serious medical bills and the value of the car is low (not saying the value to her was), I don't see how hiring a lawyer would make any financial sense fighting the insurance company. Maybe sue the other driver in small claims court?
Dave.

Good to hear your son and his friend are ok..as far as the above post,,,at this point it may be becoming "emotional stress". I agree with the posters on a counseling with an attorney.

I also agree with suing the other driver, that sounds slam dunk easy, but he may not have anything to get..

I am assuming the local PD was there so you have an accident report?

Since it will be on her driving record, I would get what I could using a lawyer. She will "pay" for it for a while anyway..