If a cashier's check is cashed by auto insurance company does this imply auto coverage?
My niece is really heart-sick. She is only 20 and just financed her first car. About a week ago someone hit her beautiful car and drove off. It was a hit and run. She has insurance, but deliquent in payment. She sent them a cashier's check to cover her insurance in full. She sent a cashier's check to the insurance. The company hadn't sent a late notice. Upon the evening of the accident-- the check was in the mail. The insurance company, in the meantime, took photos of her car. And upon receipt of the cashier's check it was immediately negotiated by her insurance company. But, they refuse to pay for the damage done to her vehicle. In a like manner, are they not accepting responsibility for repairs in that they cashed her check? She is a very sad young girl. Is there anything we can do?
Imply? Sort of. An auto policy is a contract. She can violate that contract by lying on the application. The insurance company has a certain time period to cancel it with no reason - which varies from state to state, but usually is around 30 days.
The insurance company doesn't HAVE to honor the postmark, but most do. But they don't HAVE to. So if it was POSTMARKED prior to the cancellation date, they normally would have reinstated it.
If the cancellation date was 01/03/07, that means, 12:01AM, on that date. A postmark of 01/03 is NOT going ot help her. Dropping it in a mailbox on 01/03 isn't going to help her, as it won't get postmarked until the next day.
Insurance companies do NOT have to reinstate a policy if they get the payment past the cancellation date.
Yes, payments DO immediately get deposited. Most of the time, the payment address isn't even the insurance company - it's a lock box directly at the bank, so someone at the BANK cashes it, notes that it's her payment, THEN it gets matched up with the policy.
So, is there anything you can do? Check. What was the cancellation date? What was the postmark date? If the postmark is BEFORE the cancellation, call your agent and ask for help. Otherwise, she's going to be paying for this wrecked car for a LONG time.
