Understanding how your insurance policy will affect your financial situation after you are involved in a motor vehicle accident can be incredibly confusing. The policies are written in complicated terms, and it can be difficult to know when you should contact your insurer. As seasoned Louisiana car wreck lawyers, we have assisted numerous victims with ensuring that their insurance company plays by the rules. As a recent appellate opinion demonstrates, this can have a serious impact on your ability to recover policy benefits.
In the case, the plaintiff maintained an auto insurance policy from an insurer that was effective from May 13, 2012, to May 13, 2013. On June 25, 2012, the plaintiff purchased another auto insurance policy from another insurer that began on the same date that she contacted them. A few weeks later, the plaintiff contacted her original insurer to cancel the policy. The first insurer performed a policy review with the plaintiff on the phone, and after the review, she asserted her verbal request to cancel the policy. At the plaintiff’s request, the insurer backdated the cancellation to June 25, 2012. The first insurer sent the plaintiff a prorated bill for her canceled policy.
The plaintiff did not pay the final bill from the first insurer, and it was sent to a collections agency. The plaintiff paid the bill in September 2012. In July 2012, the plaintiff was involved in a car wreck when her vehicle collided with a motorcycle, resulting in devastating injuries to the motorcyclist that ultimately caused his death. The motorcyclist’s surviving spouse filed a wrongful death action against the plaintiff and her new insurer.