When Anthony Miller was just 19, he set up his first car insurance policy with one of the country’s largest insurance companies. He did this over the phone with a sales agent. The agent asked if any adults lived in the house, and Anthony truthfully explained that his parents rented out their in-law apartment to him. This apartment was an attached efficiency unit at the back of the house.
Anthony remembered the agent asking if he had a separate address. He confirmed that he did, though they shared a mailbox. His parents’ address was 1201 Colonial Drive, while his was 1201B Colonial Drive. Anthony wasn’t sure if this was officially on record with the post office, but previous tenants had used 1201B without any issues. The agent was satisfied with his answers and sold him a policy with just his name listed, with no other drivers or non-drivers included.
Five months later, Anthony received a letter from the insurance company stating that he had misrepresented himself in his policy application. As a result, they were canceling his policy and backdating the cancellation to the policy’s start date, five months prior. Although Anthony would receive a refund for what he had paid, he would also have a lapse in insurance coverage. Anthony soon discovered that this lapse in coverage would cause his already expensive insurance rates to skyrocket. His premiums increased threefold.
The insurance company claimed that Anthony failed to disclose other household members. Unknown to Anthony, his father had a suspended license due to a DWI received just before Anthony opened his policy. During the company’s investigation for his upcoming renewal, they discovered that the post office did not recognize 1201B Colonial Drive as an official address, despite delivering mail there for years. As a result, Anthony was living in a single-family home with his parents, one of whom was no longer a licensed driver. The insurance company considered this a negligent misrepresentation and backdated the policy cancellation in a process called rescission.
Anthony believed he had no recourse in the matter. After all, his father did have a suspended license. He accepted that he would have to give up his vehicle and insurance until enough time passed for him to afford them again. Given the increase in his rate, he couldn’t afford to pay triple the insurance costs on an already expensive policy. Anthony was forced to rely on public transportation to get to work and school. Anthony did not know that attorneys can help when policies are canceled.
You Can Fight a Car Insurance Policy Cancellation
If your insurance company is unwilling to reinstate your policy or give you adequate time to find a new one, you can take them to court. It’s essential to contact an attorney. If you are in Florida, the law offices of Anthony-Smith offer free consultations and charge you only if they win your case. In that event, the insurance company is likely to be ordered to pay your legal fees. For help, call 321-900-HELP (321-900-4357).
Here are some possible outcomes when you challenge the insurance company’s decision:
- Your policy could be fully reinstated, eliminating the lapse in coverage.
- You could be reimbursed for the higher premiums you paid to your new insurance company.
- If you had to pay transportation costs due to the loss of use of your vehicle, those fees may be reimbursed.
- DMV and other fines and fees incurred may be reimbursed.
- If you suffered emotional damage or job loss, you may receive compensation for pain and suffering.
Don’t bear the brunt of a canceled policy alone. Reach out to our law firm for expert guidance during this challenging period. Insurance companies are required to act in good faith, and if they fail to do so, our attorneys can hold them accountable.
