by abrett » Mon Apr 11, 2011 02:09 am
I asked agent to remove collision coverage from my car. She mistakenly dropped it from my daughter's car, which has a loan. Daughter's car was totaled in accident. Agent says I should have noticed her mistake, or the credit union should have noticed. She is refusing to back me up with the insurance company she represents. They are refusing to pay. Am I stuck with the loss?
Posted: Mon Apr 11, 2011 05:56 am Post Subject:
What was the time frame from the time you dropped the coverage until the accident? Your insurance company would have mailed you notification of the change and you should have reviewed it. I'm guessing your agent is stating that you asked to have collision dropped from the vehicle in the accident?
Posted: Mon Apr 11, 2011 08:13 pm Post Subject:
Agent says I should have noticed her mistake, or the credit union should have noticed.
That is, to state it lightly, absolutely ridiculous. Your agent is the professional... you're not. It isn't "up to you" to "notice" these things. It's up to the professional agent to make sure that their job is performed correctly. It's been my experience that agents that say those things are the typical kind of person that would like to blame others for their mistakes.
Here's what I would do if I were you. Call the agent back and tell her that you are giving her a choice: either push through the coverage as it was supposed to be done in the first place (carriers know that agents sometime screw this stuff up, so it shouldn't be that big a deal) or that you are going to pursue an Errors and Omissions lawsuit against her, her boss, her agency and the carrier that was involved.
This should make her decision a bit easier and you should have the loss covered. Your agent is an idiot and once this is resolved, you need to have the company get you a different agent through what's called an "agent-broker letter of record."
InsTeacher 8)
Posted: Mon Apr 11, 2011 08:26 pm Post Subject:
I think the agent is probably denying any error was made.. that is, that the poster asked to have collision removed from the vehicle that was in the accident. Also, the agent is pointing out that enough time went by that the poster could have corrected what was seen as an error. Even if it was done in error, if years went by the agent would still have a good argument. Lastly, does the poster want to pay the back premium for the coverage.
Posted: Tue Apr 12, 2011 12:23 am Post Subject:
This is ridiculous, if the agent admitted making the mistake. I would call the agent again, request the agent fix the mistake, or advise your agent you will contact your State's department of insurance to file a complaint against the agent.
Once it is resolved, shop your insurance and get a new agent.
Posted: Tue Apr 12, 2011 02:28 am Post Subject: More info on Agent dropping collision on wrong car
To answer the questions asked in the responses:
1) change was made 6 months ago- shortly after I paid off my car loan
2) yes, the change was mailed to my home- I didn't look at it carefully - the amount taken auto-withdraw from my checking went down
3) agent is also co-owner of the agency
4) I spoke with person at carrier - said they could only add the coverage reto if the error was made during submission- that is, the computer caused the problem. Since they did what the agent asked & I didn't catch the error, there is nothing they can do.
5) agent first told me she made the change on the correct car - tried to tell me I actually drive my daughter's car & she drives mine. When I gave proof that is not true, she then told me I told her to make the change on daughter's car - Is that possible (legal) since my daughter's car has a loan?
6) I would gladly pay back payments if they would pay my daughter (shouldn't they pay me the back payments I incorrectly paid on my car?)
7) credit union said I am to pay the back payments, then carrier will pay credit union amount owed on loan- then credit union gets their money, but daughter is still out the equity she had in car
8) I am changing agents and insurance companies - daughter still does not have transportation - I have apologized to her, as did her friend who crashed her car - guess the agent isn't big enough to do the same
Posted: Tue Apr 12, 2011 04:11 am Post Subject:
When you called to remove the lienholder and drop collision, did you specify the year make and model of the car? Or did you just say drop the collision for your car?
Are both you and your daughter's car on one policy in your name?
Even though the agent sounds like they made no effort to make sure they were making the change to the right car, you may be on the hook if you gave the agent vague instructions.
If the agent is not admitting the mistake, and if they are not an independent agent, i.e., State Farm, Farmers, Allstate, American Family, etc. ask to speak to their district manager.
If that does not work, file a complaint with your state's department of insurance.
Posted: Tue Apr 12, 2011 04:18 am Post Subject:
As mentioned, you can file suit against the agent if you feel you have enough info to prove the agent incorrect. Personally, I do these important changes via letter or some form of written communication so that there is a paper trail.
Yes, a carrier can drop collision coverage for a vehicle with a lien holder... if the insured asks.
My guess is that you would need to raise the roof at the insurance company to see if they might put some heat on the agent. If it's an independent agent then they probably won't do much as they are pretty well insulated from liability. Certainly file a complaint with the states Dept of Insurance. You might also try filing with the BBB (even though the BBB is less then worthless). Write letters, talk to anyone that will listen.
See if you can file a claim under the drivers policy. I doubt that they will cover it but there is a possibility. If the driver is at fault you can also ask them to pay off the vehicle. The vehicle was loaned to them with the expectation that it would be returned in the same condition. It was not.
Your daughter is loaning out her vehicle? Not a good move. As such, your daughter has no room to complain.
Posted: Tue Apr 12, 2011 12:12 pm Post Subject:
Complaints are being filed at the State Doi, BBB and insurance commissioner. E&O lawsuit can be naturally filed against your agent as this was her mistake and not yours.
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