Is this right?

[totalia]

I was shocked when my fiance told me this. Most insurance companies (according to my fiance anyway) are putting off the need to pay for things like car insurance for three months for the victims of Katrina.

Except for his car insurance company. They refuse to allow more than a month and the time is already up because he needed it last month after his visit to Canada.

He may lose his car because the stupid company isn't willing to put off the payments for a little while to allow him to get a job. Its not like he just ticked off his boss or anything.

He lost EVERYTHING in this. It was a huge natural disaster.

I don't know what to tell him. I'd tell him to find a different company but I'm not sure how that works in the US or the impact it might have.

 

[WDWHound]

I see and understand what you are saying. Here is the problem. There are enough people who would claim losses that they don't actually have that the insurance company would take a significant hit if they accepted every claim at face value.

I know your fiance isnt trying to do this. But others will, you can count on it. Given that, the insurance company is faced two options:

1) They can pay all claims quickly without checking for Fraud. This insures all their policy holders are serviced quickly, but also gaurantees significant loses to fraud.

2) They can investigatye evbery claim (which can take moths in a situation like this) before they pay. This stops a lot of the fraud, but honest people like your fince pay the price for it.

In the end, neither option works well. I don't have any answers. All I can offer you is my symapthy and my thoughts (I would offer prayers, but I know that would be against your wishes, so I will respect that)

 

[bsnyder]

Not sure I totally understand - what did he lose last month?

Has he tried going higher up in the company, or did he just talk to whoever answered the phone. I'd tell him to be persistent and maybe he'll get someone within the company with some decency and compassion.

He won't lose his car for lack of insurance. Not that I'm advocating he drive without insurance (although lots of people do).

 

[bsnyder]

Now I'm more confused, based on the poster above. Is the car under water in New Orleans and he's trying to collect on a claim, or is it that he doesn't have the money to pay his insurance premium?

 

[totalia]

He's not asking for the insurance to be given freely just to be allowed to pay at a later date in the way of paying extra every month until its paid off. Deferred payments I think its called.

I will tell him exactly what you said bsnyder. He won't lose his car for no insurance but he's still paying on the car though the company he owes that money to is being much more understanding and are willing to give him a couple of months to get a job.

Last month he used his one month deferrment because he spent too much money when he came to Canada. More than he had intended. He had to take his months deferrment at that time or they were going to revoke his insurance.

Man, I think he needs to change insurance companies.

Not everything is about the almighty dollar. Sometimes its about doing whats right. At least the car loan company gets that.

It just seems so wrong to take something from someone who just lost everything else they had because the company just doesn't have any patience.

 

[peachgirl]

He won't lose his car for no insurance but he's still paying on the car though the company he owes that money to is being much more understanding and are willing to give him a couple of months to get a job.

No, he won't lose his car, but if he has it financed somewhere, they require that he have full coverage on it. If he lets his insurance lapse wherever he has it financed will purchase it for him and he does not want them to do that...it will be much more expensive.

Nevermind that it's against the law to drive without insurance and if he had an accident the results could be very serious financially as well as legally.
At least that's how it works here and I'm fairly sure most states have the same basic requirements.

He can get new insurance, but that really won't help him as he'd have to come up with probably at least 1 months insurance premium.

I'm sorry he's having such difficulties, but I'd find a way to pay that premium if there was any way in the world to do it.

 

[Lisa F]

I don't think he is trying to make a claim, I think he is trying to figure out a way to pay his premiums. Most companies are giving evacuees extensions on typical grace periods, his insurance company sounds like they are only allowing for a typical 1 month grace period, which he used last month already so there IS no grace period.

 

[CarolA]

I think his problem is that he was already behind.... so that may be impacting how they feel about deferring his policy payments.

Not sure what to tell you. I don't think changing is going to work. I doubt a new insurance company is going to agree to take him without him paying some preimums and I doubt they would "Defer" a new account.

Has he started applying for aid?

I went and checked your earlier post. Is he in Atlanta? The Red Cross has set up what they are referring to as a "mega" center here to get help. The lines are long but if he hasn't started applying for things this is where he should go.

The following centers will be open from 9 a.m. until 8 p.m., seven days a week:

Fulton County
Georgia International Convention Center
2000 Convention Center
College Park, Ga. 30337

Cobb County (From what I hear this one is really crowded)
Life University
1269 Barclay Circle- Gym
Marietta, Ga. 30060

Gwinnett County (My bet is this is the one with the shortest lines... No public transport to this place!)
Former Wal-Mart
355 Grayson Highway
Lawrenceville, Ga. 30045

The following agencies will be on hand at each center to offer help:

• Dept. of Human Resources
• Dept. of Community Affairs
• Dept. of Driver Services
• Dept. of Education
• Dept. of Labor, and other state agencies
• Atlanta Council for Aging
• Federal Emergency Management Agency
• Social Security Administration

 

[diznygirl]

Although finance companies require that you have insurance, they don't check up on it. And although the law requires it, they only find out about it if 1) you are pulled over, 2) you are in an accident, or 3) the car comes up for registration - then proof of insurance is required.

Worst case scenario - he loses his insurance - he drives without it - he gets new insurance when he gets a job.

Meanwhile, he can call his insurance company and talk to more people - hopefully he'll eventually get the right one that can make things happen.

Good luck!

 

[CarolA]

Although finance companies require that you have insurance, they don't check up on it. And although the law requires it, they only find out about it if 1) you are pulled over, 2) you are in an accident, or 3) the car comes up for registration - then proof of insurance is required.

Worst case scenario - he loses his insurance - he drives without it - he gets new insurance when he gets a job.

Meanwhile, he can call his insurance company and talk to more people - hopefully he'll eventually get the right one that can make things happen.

Good luck!

NOPE!

I changed insurance companies once... Somehow the bank did not find out about it (edited to add... the bank did not find out about the new insurarance, they found out about the cancellation!)... They sent me a letter, if I did not provide proof of insurance they would "add" insurance to my payments.. (Their's was expensive and only covered THEM!) I was not in an accident, did not get a ticket etc.... They sent me this 30 days after the first companies policy lapsed. The insurance companies tell them...

 

[WDWHound]

Now I'm more confused, based on the poster above. Is the car under water in New Orleans and he's trying to collect on a claim, or is it that he doesn't have the money to pay his insurance premium?

Looks like I misinterpretted the original post and confused The issue. Sorry about that.

If he was on time with his payments before the deferment, and the deferment was offered by the insurance company as something they would nomally offer anyone, I would think they should cut him some slack. If you don't mind my asking, has he had a history of late payments before this? If so, that might be factored into the decision. If not, I would expect the insurance company to be more cooperative than you say they are being.

 

[peachgirl]

Somehow the bank did not find out about it.

Here the law requires that the insurance company send the lender a notice when and if you let the insurance expire. They will send one out anytime your payment is late enough for them to send you a warning of cancellation.

I was late one time on my premium because...well because I screwed up and forgot to pay it. I was never in danger of being cancelled because I paid it the day I got the late notice, but the insurance company sent the lender a notice that my insurance would expire on "X" date if payment wasn't received at the same time they sent me the late notice.

I got a letter from the bank a few days later and had to call them and let them verify my insurance. As you say, it's very expensive and only covers whatever balance you owe on the car.

 

[totalia]

I don't think he is trying to make a claim, I think he is trying to figure out a way to pay his premiums. Most companies are giving evacuees extensions on typical grace periods, his insurance company sounds like they are only allowing for a typical 1 month grace period, which he used last month already so there IS no grace period.

YES. Thats it exactly. Thank you.