My insurance company has rescinded my policy and I have a claim pending with them, will it be canceled ?

Question

I bought a new Dodge around April 7 and obtained full coverage insurance. I was in an accident on April 22 and filed a claim with the insurance co. The claim was filed on the 25th and they gave the authorization to make repairs to the shop on the 3rd of May. I just got a letter today from the insurance co., saying that my policy was rescinded (which means it was voided from the start date) and the reason behind it said, The car was returned to the dealer, Unable to obtain financing. This is totally false since they know I filed a claim a week earlier and the car is in the shop not the dealer. I also have my statement from the finance co., proving it was financed to me. Will my current claim be canceled because of this ? I called the body shop to see if the insurance co. called them to stop repairs and they said no. They are still fixing it. Can a rescission be reversed if I provide documents proving the car is mine and financed ? The car is mine and financed. Thanks for your help.

I removed this question by accident earlier. Thanks to those who answered, your advice was very helpful.

Answer 1

with any luck, the body shop is on a direct bill to the insurance company, hopefully they do the work, and you get your car back, at that point it is between the shop and your ins company.

It sounds mostly like a paperwork mix up with your insurance company though, i would get a hold of whoever sold you the policy. He is making money on your renewals, and now that it is not renewed, he wont get his commission, so he would be the best advocate on your side to fix the problem

Answer 2

Call your insurance agent and tell them it was a mistake. When they look through the paperwork, they should be able to find that there is nothing about the return due to financing.
There are a couple of reasons you got the letter:
1. They meant to send you a cancellation letter because of your accident within a month of opening the policy and accidentally sent you the wrong form letter (happens quite a bit).
2. They crossed files with someone else's policy and have some paperwork to correct. This could have happened at either your agent's office or the insurance company's office.
3. They are trying whatever they can to get out of your claim (not very likely).

If you have your cleared check (for the insurance premium), you are going to be OK. It wouldn't hurt to have a copy of your loan with you when you call; they may ask some questions. They should be able to just call your lender to verify the loan is in place on your vehicle (verified with your VIN).

Good luck

Answer 3

particular they could do this. It discourages frivolous claims. maximum policies state the two fairly some claims or dollar volume which could convey approximately being dropped or substitute in insurance quantities. My make sure's filed a declare for water injury simply by a defective water heater and it became the third declare in 5 years (one became a outbuilding that became broken in a hurricane can no longer keep in mind the different) and that they have got been given a letter announcing rather of a $250 deductible, they have a ten% ded now. After 35+ years of insurance with this employer. of path they are ticked inspite of the undeniable fact that this is interior the agencies rights to take action.

Answer 4

Your claim will not be covered. If your policy is rescinded its like it never existed. Your premiums you paid will be refunded to you. You will be liable to pay the shop for the repairs.