Car Insurance Trying Not to Pay Claim!!

[iPlatinumz]

Hello,

I have an auto insurance policy with Progressive insurance that is valid from 6/6/14-12/6/14. A few days ago, I had went to Geico for a quote and found out I could save almost $70 a month for the same amount of coverage so I told progressive that I didn't want to renew my policy (My geico coverage starts 12/7/14). Just my luck, somewhere around 12 AM this morning on 12/6/14 (the last day my "paid-in-full" policy should be valid), I hit a curb that messed up one of my wheels and needed to make a claim.

Now, Progressive tells me that they don't think they should have to approve the claim because even though my policy is dated 6/6/14-12/6/14, I cant file a claim on 12/6/14 after 12AM. ARE YOU SERIOUS!? I would think that I should have until 11:59 PM on 12/6 to file a claim if needed. Their Policy Services department tells me that if I want to make a claim I should pay to renew my policy, but I told them I shouldn't have to since my policy was paid-in-full and I should be covered.

If they do not approve my claim, should I go to the Ohio Department of Insurance about this or is the insurance company right?

 

[Josh]

Let's back up, how mich damage did you do to one wheel? It's possible that filling a collision claim will raise your premium more than they pay out.

Does the policy list the exact time it starts and/or ends? In NY they always started at 12:01 am.

 

[Texasproducer]

Yeah. Typically a policy expires at 12:01 am on the expiration date. So if Geico didn't start their coverage until 12/7, then you didn't have any coverage on the day of 12/6. Of course an agent would have educated you about that, rather than buying insurance from a talking lizard.

 

[iPlatinumz]

Let's back up, how mich damage did you do to one wheel? It's possible that filling a collision claim will raise your premium more than they pay out.

Does the policy list the exact time it starts and/or ends? In NY they always started at 12:01 am.

The repairs would cost $1100. ($500 ded.)

 

[Josh]

The repairs would cost $1100. ($500 ded.)

If they don't pay the claim they are probably doing you a favor.

 

[BlockO]

If they don't pay the claim they are probably doing you a favor.

I agree. even though all you did was hit a curb, a paid claim would show up as an at fault accident on your CLUE report. that will affect your rate for at least 3 years with some companies, and 5 years with other companies.

not worth the $600, in my opinion.

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Yeah. Typically a policy expires at 12:01 am on the expiration date. So if Geico didn't start their coverage until 12/7, then you didn't have any coverage on the day of 12/6. Of course an agent would have educated you about that, rather than buying insurance from a talking lizard.

exactly right on both points. furthermore, Ohio is a state that does random insurance checks on 1500 vehicles per week..... had they pulled one of iPlatinumz's vehicles on 12/6, his/her license would have been suspended for three months.

an agent would have advised you to start the new policy on the 6th instead of the 7th. but a direct company like the talking lizard doesn't have agents. they only have CSR's and salespeople, and many of them aren't smart enough to alert you about these kind of things.

 

[indienoise]

How does GEICO rate a lapse of less than 30 days? I know carriers all treat that differently, and I'm almost wondering if they purposely gave him a 1 day lapse to keep him from being successfully shopped by someone else. I couldn't tell you how often I see 1 or 2 day lapses between prospects' terms, and wonder how often that's done to prevent customers from going somewhere else. Dirty trick IMO.

 

[Rknee1]

Dont know about the talking lizard but Allstate will allow you to have a less than 5 day lapse in coverage- and keep the best auto rates...line 10 instead of higher indemnity rates at line 19

 

[BlockO]

How does GEICO rate a lapse of less than 30 days? I know carriers all treat that differently, and I'm almost wondering if they purposely gave him a 1 day lapse to keep him from being successfully shopped by someone else. I couldn't tell you how often I see 1 or 2 day lapses between prospects' terms, and wonder how often that's done to prevent customers from going somewhere else. Dirty trick IMO.

I never looked at it that way. that would be a dirty trick if they're doing it intentionally. But I don't believe that's what is going on here for two reasons:

1. it wouldn't be very effective, as most companies wouldn't care about a 1-2 day lapse. some companies even let you go up to a month with a lapse, and still offer the full prior insurance discount.

2. it would create more problems (E&O liability) than it would be worth.

I think it's more about the customer, and not being educated about expiration dates.