DMV Issue

[nyc2phi]

I switched over an insured from progressive to another carrier in January. When we sent out the cancellation letter, it had the wrong effective date on it. Progressive canceled the date it stated on the letter. The insured recently got pulled over in NY and was told about the lapse. He now has to appear in court and prove there was no lapse or else its a $250 fine.

Progressive will not budge and provide coverage for that month that he was supposed to be covered. The other carrier will not backdate.

Do I have any options here?

This is a NY registered car.

 

[Sales71]

I switched over an insured from progressive to another carrier in January. When we sent out the cancellation letter, it had the wrong effective date on it. Progressive canceled the date it stated on the letter. The insured recently got pulled over in NY and was told about the lapse. He now has to appear in court and prove there was no lapse or else its a $250 fine.

Progressive will not budge and provide coverage for that month that he was supposed to be covered. The other carrier will not backdate.

Do I have any options here?

This is a NY registered car.

Sounds like it was your mistake. If its a valuable client you may have to fork the fine for him or split it

 

[nyc2phi]

Sounds like it was your mistake. If its a valuable client you may have to fork the fine for him or split it

I thought about that too. He also signed the letter though.

 

[Aram Fingal]

The other issue to keep in mind here is the next time his policy renews he's going to have that ticket on his history and the rate will likely go up.

 

[Blastr17]

If there was no coverage in effect, progressive needs to reinstate their coverage. In NY you can only cancel a policy with an FS-6T or replacement coverage. When you sent out the LPR was there an ID card, or dec with it? If not then you need to climb the supervisor latter, you will eventually win this one. They in reality should of never cancelled if they just got an LPR with no proof of new coverage

 

[BlockO]

I don't know about New York laws, but ..... one other thing you might want to look at ..... I know Progressive sends a policy change confirmation email to the agent with every policy change.

try pulling that email up and checking the date on it. it should be dated the same date (or later) as you wrote the new policy. if you did it correctly, that should save you.

 

[Milkman1265]

If there was no coverage in effect, progressive needs to reinstate their coverage. In NY you can only cancel a policy with an FS-6T or replacement coverage. When you sent out the LPR was there an ID card, or dec with it? If not then you need to climb the supervisor latter, you will eventually win this one. They in reality should of never cancelled if they just got an LPR with no proof of new coverage

This is what i've have always gone with as well. But progressive is the only company that just cancels (that i know of) if you ask them to cancel.

Also in NY, it shouldnt affect the rate, unless it was a huge lapse, most of my companies ask continuous coverage with no lapse more than 31 days.

 

[fjwinters]

New York is tough, I live here. There is nit much you can do less you prove to progressive it was there mistake on the paoerwork. Try and get a copy if your previous insurance card to show when your last policy was to end and the progressive policy was to begin. Speak to a supervisor. If they dont change it your out of luck.

 

[InsuranceESQ]

My suggestion is keep trying to fix this; but if not fixed pay the insured. This was your error. Sure, your client signed the document, but you will probably lose his business if you let him incur the expense. You should expect to earn more from this client by keeping him. ( Not counting the referrals he might send your way)

 

[nyc2phi]

Thanks everyone for your help.

I resolved this issue by offering to pay for my mistake.

I learned that Progressive should of corrected this error and they chose not to so they are currently on my **** list even though we represent them.

This insured is also being non-renewed due to an undisclosed DUI charge that he never told us about.

I couldn't of probably avoided this issue all together if I knew that..