My Husband was laid off due to the economy and we took a real hit financially. We were not able to pay our premium right on time and received an intent to cancel notice with a required postmarked date for the payment. I mailed the payment before the postmarked date, but received it in the mail 8 days later with a return to sender label.
I was in an accident a couple days before the payment was returned and found all of this out when I called to report the claim and had no idea the payment had not made it to the company. The Insurance Co. asked me to fax them the envelope with the postmarked date and a copy of the check. I did… They came back 5 days later saying they are not going to cover it because they didn’t receive the payment. Is this legal when I have no control over the post office?
I understand, I was at fault for having to send the payment late. But the notice clearly stated a postmarked date in order to prevent a lapse in coverage. I don’t know what to do. I will loose everything if my insurance company doesn’t back me up. I owe $20,000 on the car and the damages are way more then I can afford. I’ve always paid them.
The return to sender label stated “undeliverable as addressed”. I did not have the pre addressed envelope at the time I was sending the payment, so I wrote the address down that was on the notice.
The Insurance Company is Safco Insurance.
with the kind of money you are talking about i would get a lawyer
I have dealt with this kind of thing many times. However, you are leaving out a very important part…….why did the Post Office return the mail? The yellow label should have a reason on it. This is an important part of the puzzle.
Also, if you don’t mind tell us who the company is.
Hopefully, you’re not in this position again but it is always best to bring the payment to your local agent assuming you have one.
—EDIT—
Thanks for the additional info. Not much good news in it though. Some companies have addresses that they refuse to accept mail at. I used to work for one that did that. Very interesting tactic.
Even though you used the wrong address an argument could be made that you made a good faith effort to make the payment before the deadline. If you have a local agent you will need explain why you didn’t take the payment to them because with most companies taking the payment to the agent is the same as handing it directly to the CEO of the company.
Safeco should have sent you a written letter by now explaining their coverage denial. You have two cheap options at this time. 1) make your case to a claims manager or other junior claims executive or 2) ask your states Insurance Commissioner to review the matter.
Frankly, the odds aren’t in your favor but it’s worth a try.
Good Luck