Legal Question in Insurance Law in New Jersey

Policy got cancelled for non-payment

I got a new auto insurance policy. The price was great. lowest quote I received. They took my initial payment over the phone via credit card and told me all future payments would have to be via check. They did not tell me when my next payments would be due. They said I would receive a welcome package in the mail with my ID card. After 2 weeks I never received any such kit. I called to complain and was told another kit was mailed out. The second kit never arrived. I called yet again to complain and was told the kit was ordered and should arrive in another week or so. The next thing I know I got a letter in the mail stating that my policy was cancelled and I owed $9 for some sort of fee. When I called to ask about the cancellation they said that they had proof that they mailed my cancellation notice but had no proof that I actually received it. I asked for this proof and they faxed me a USPS Form 3877 which was neither postmarked nor signed by the receiving employee. They told me as a consumer I should know when my bills are due. If I had a payment history I would accept this answer. When I tried to reinstate the policy they wanted $630 more per year. I've tried 3 supervisors and they wont budge. Is there anything I can do?


Asked on 11/11/04, 4:07 pm

2 Answers from Attorneys
Alan Albin Alan S. Albin, Attorney at Law

Re: Policy got cancelled for non-payment

Yes. They obviously don't want your business. You need to get another insurer.

If you are talking about taking legal action, theoretically, you may have a fraud case, although proving it might be difficult and would be costly.

You have to do a cost/benefit analysis in this type of situation.

If you think you might want to take legal action, you should retain an attorney to review all the documents, etc., to give you some idea of whether a lawsuit is worthwhile for you to pursue.

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Answered on 11/11/04, 5:46 pm
Scott Diamond DIAMONDLAWYER

Re: Policy got cancelled for non-payment

the first thing that you should do is go on the insurance web site and file a formal complaint against the company. The next thing you can do is sue them for fraud and violation of the insurance statute. They must have proof of your policy cancellation notice and what they sent is not sufficient under the law. A letter from a lawyer should straighten this out.

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Answered on 11/11/04, 8:42 pm


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