Unpaid policy coverage?



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Thread: Unpaid policy coverage?

  1. #1
    JFD's Avatar
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    Unpaid policy coverage?

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    Hi all,

    Annoyed by something and need to see if anyone has any idea of truths in this scenario.

    I had a policy with a company, and when it rolled over to the next year, they never issued me a renewal invoice (due to an apparently system issue). They never contacted me ever through the year and I never even thought of it.

    Time to renew came, and they advised I have an outstanding balance. When they said it was full policy price I was astounded.

    Ok fine, if I never paid, invoice me - but my concern was the non payment.

    So if I had an accident during that year, is there a possibility they could have denied coverage because I never paid?
    james
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  2. #2

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    Re: Unpaid policy coverage?

    Due to client abuse there have been some changes over the years. They used to have to advise you by registered mail that your policy was being cancelled as of a certain date. Some people took advantage of that and it was too hard for the insurers to chase the money.

    My recent policy invoices state that coverage ceases on expiry date unless the premium is paid. My argument would be if they didn't send the invoice how would I know the terms.

    In your case the company seems to be admitting that their system had billing errors plus you were never notified of any cancellation.

    Had there been a collision you would have grounds for arguing you were covered. A track record of paying all your bills on time would have been an asset. The downside is the insurers only have profit in mind and lots of lawyers on call to make it happen.

    I get the pink slips with the invoice. Did you get pink slips? That would be another scenario if a cop and court said you weren't covered. Major fine.

  3. #3
    Riceburner's Avatar
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    Re: Unpaid policy coverage?

    Insurance slips cone with the invoice for me. No invoice=no slip. Screwed if I was stopped and didn't have one. That said, I know when my renewal is and if it didn't come I would be looking into why. I'm not taking a chance on not having the right coverage/paperwork. Interestingly enough, my paperwork with invoice came months before renewal date, paid about 3 weeks before renewal and a letter was sent by them reminding me to pay if I didn't already. Probably auto sent if the payment wasn't paid a month before is my guess.

  4. #4

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    Re: Unpaid policy coverage?

    Quote Originally Posted by Riceburner View Post
    Insurance slips cone with the invoice for me. No invoice=no slip. Screwed if I was stopped and didn't have one. That said, I know when my renewal is and if it didn't come I would be looking into why. I'm not taking a chance on not having the right coverage/paperwork. Interestingly enough, my paperwork with invoice came months before renewal date, paid about 3 weeks before renewal and a letter was sent by them reminding me to pay if I didn't already. Probably auto sent if the payment wasn't paid a month before is my guess.
    I checked with my wife, a ex insurance underwriting assistant. It used to be they had to give you 60 days notice of cancellation. If you didn't pay they might wait a few weeks to see if the cheque came in and then send the notice. One could ride / drive for three months before their insurance was cancelled then switch companies. The insurer could go after the premium for time under risk but chasing money costs money. Now they, in effect, advise you with the invoice. It also gives you time to compare rates.

  5. #5

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    Re: Unpaid policy coverage?

    Well under the HTA, you MUST have insurance. I suspect, had you been stopped, and charged for no insurance your, explanation would hold very little water with the JP. Basically, just like your plate, it is YOUR responsibility, to ensure it is current.

    I also log into my bank account from time to time. and it wouldn't take me a year to discover insurance wasn't being taken out.

    Last, year my renewal didn't arrive 60 days prior. I was on the phone checking to see where it was 59 days pre renewal date. Insurer, advised it was their system error, they got it to me approx 10 days later, with a note, that due to their error, my renewal date was being pushed back to provide a full 60 day period, in the event I wanted to switch companies.
    Last edited by hedo2002; 10-30-2018 at 03:31 PM.

  6. #6
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    Re: Unpaid policy coverage?

    Quote Originally Posted by hedo2002 View Post
    and it wouldn't take me a year to discover insurance was being taken out.
    That's what I was thinking. If insurance didn't come out of my account on the 1st of the month, I'd know on the 2nd that something was up.
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  7. #7

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    Re: Unpaid policy coverage?

    I did a change of address with my company,waiting for my renewal slip and didn't give it much thought. I got a call asking if I was going to renew my policy,my new papers where sent to the old address,I was emailed my new copy but I would of been in a situation had I been stopped.

  8. #8

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    Re: Unpaid policy coverage?

    Quote Originally Posted by nearace View Post
    I did a change of address with my company,waiting for my renewal slip and didn't give it much thought. I got a call asking if I was going to renew my policy,my new papers where sent to the old address,I was emailed my new copy but I would of been in a situation had I been stopped.
    But if they called you about renewal then you were still covered, (Presumably they were calling BEFORE the policy lapsed), so in that case if you got stopped you would have been fine, the address on the pink slip would be wrong but the policy was still in effect.

    IIRC, the HTA states nothing about the address on the proof of insurance, merely that you MUST have VALID coverage, and be able to present proof of same, (which the HTA has yet to be updated so it MUST, (especially if you get a cranky officer), be the pink slip. a "copy on your phone" is NOT acceptable proof of insurance, under the HTA.
    Last edited by hedo2002; 10-30-2018 at 03:36 PM.

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