My friend's bad luck / lesson / query

[Dauphin]

I've asked about the exact nature of her insurance expiry and she says her insurance was three days out of the "cover period". She can't claim. The insurance company has told her this.

Re: paying up and then claiming. At the scene of the accident, wouldn't you swap details with the other driver? The driver would then contact their insurance to arrange for tow, claim, etc. So her insurance company might be made aware of this pretty soon after if the other driver's company starts the process, right?

[BENT_8]

Bad luck for her ey.
I always use the monthly installment option for my insurance, direct debit.
With this option you pay a few dollars extra per year but the policy never runs out unless you cancel it.
I dont even get a reminder each year just a copy of the new years policy, its much easier and for the extra $5 per month, id say would be well worth it in her situation.
Some would say that paying extra is a waste of money and a long shot gamble that it might come in handy one day, as in this situation however insurance is a game of odds altogether.
Insurance companies gamble on the amount of money taken from policy holders outweighs the debts incurred by claimants.
If her policy expired then they win the bet as she paid them money for X amount of time and in return she got $0.

[Yaw]

Originally Posted by DRHEMI

Yaw we are talking about RACV here....... a direct marketer, I have not heard of them sending out "reminders" or "overdue" statements........ i could be wrong as they may of changed their underwriting guidelines BUT no insurer will honour a claim after the "expiry" date if an extension of cover is not agreed upon or a held cover period is stated on the renewal notice.

Brokers have guidelines where they must send a renewal notice at least 14 days prior to renewal THEN a statement if the premium is not paid by renewal THEN a 7 day expiry letter if the policy is still not paid advising the client if the don't pay the policy within 7 days it will be cancelled THEN if they still don't pay a cancellation notice.

Direct Marketers do not run by these guidelines.

As a person that works for a direct general insurance company and works in Motor claims, I can tell you for fact as i personally have approved claims after a renewal date on lapsed policies. Once we even covered something that was 6 months overdue. It is a case by case basis but as for the reminders actually under FSRA it is a requirment they are sent. I know the company I work for does not actually "Lapse" a policy until after 21 days from the renewal date. Just because it is overdue is not always grounds to deny a claim if the intention was to pay for it anyway. Which is why if push comes to shove and it goes all the way to the ombudsman it will cost the insurance comapny to pay the ombudsman fees along with the descion that would likely get overturned as well. If you are talking less time than 21 days it will usually go in the insured favor at the ombudsman.

[Yaw]

Originally Posted by Dauphin

I've asked about the exact nature of her insurance expiry and she says her insurance was three days out of the "cover period". She can't claim. The insurance company has told her this.

Re: paying up and then claiming. At the scene of the accident, wouldn't you swap details with the other driver? The driver would then contact their insurance to arrange for tow, claim, etc. So her insurance company might be made aware of this pretty soon after if the other driver's company starts the process, right?

that is assuming the other person has comprehensive insurance, but it usually takes weeks, sometimes years before oposing insurance comapnies recover- 6-12 months is not an unusal time frame. I would push further with her insurer and escalate the call to a supervisor, if the answer is still no ask to speak with thier internal dispute service, You see the other side of the argument is if there was not a claim would they have accepted the late payment in that time frime...the answer to that is yes they would of, therefore they need to cover the accident.

[Dauphin]

Found out some more information. She was 35 days past her renewal, with 5 days past the extra 30-day period that they will cover her. So she's got no option but to pay for it all.

[holmsy]

just pull the whole. cover me or my business goes elsewhere. worth a shot

[Ringo]

What a story....bad luck made worse by forgetfulness....this is enough to ruin your year...sympathys to those involved...$20k is a lot of dough

I have heard of brake pads rattling within the caliper which over time which pushes the piston back into the caliper. Then you put the foot on the brake, piston fills with fluid rather than pushing on the pad and pedal goes to the floor. The next time you push the bakes it is all fine because the piston was already full of fluid, you swear the brakes failed but mechanic look at you and call you a liar because there is nothing wrong with the system they say. This extremely rare occurance can occur when driving on road with corrugations for some time (hours perhaps?) without touching the brakes. This is why some calipers have anti-rattle clips as part of the assembly.

I had a sort of friend who when she was 18 drove with a migrane, went through a red light and T-boned a 6 month old Mazda. She doesn't remember anything about the accident or much of that day actually except coming to in the emergency dept of the Austin Hospital (Metro Melb). Ambo's and Cops thought she was high because she was talking funny and unable to co-ordinate herself after the accident except that all the tests came back negative. Her $8k car was a write off as was the Mazda, and no insurance to cover it - She set up a payment plan with minimal payments and then got on with her life....also got charged and went to court for driving offences etc.

[EA2BA]

Originally Posted by Dauphin

Found out some more information. She was 35 days past her renewal, with 5 days past the extra 30-day period that they will cover her. So she's got no option but to pay for it all.

Looks like she has learned a very hard life lesson then.
Even going monthly with the bit extra you pay with some insurance companies at least gives you insurance, and when on direct debit it just rolls on every year unless when you receive the renewal and then ask them to cancel it.

Everyone looks for a way to get out of it (Yes 20K is alot), but her actions caused all of this, so time to face the reality and learn a lesson I hope.

[Dauphin]

A very hard lesson indeed and a terrible situation to be in at such a young age (mid-20s, I think). She was looking to move out of home but I think that's going to go on hold now.

The weekend just passed was a bad one for me on the road and made me think more about all this - had two ABS-involved stoppages due to other drivers, one a taxi.

[Bucknaked]

Originally Posted by charliewool

Well ain't we all just holier than thou on here?... ALL SO perfectly organized, ALL SO immaculate in every financial dealing?
Honestly.. Some of you guys seem to get SUCH frigging pleasure laying the boots in on other's misfortunes whilst playing keyboard warrior!

Well said.

[DDXR6T]

Originally Posted by LSTerritoryGhia

Why should they...

When your milk runs outta date do you keep drinking it?

This is why I always pay my bills the day I get them.

Exactly - Its a contractual agreement with you're insurance company. Once it's expired they want nothing to do with it. Doesn't matter if it is 12 minutes or a day ... they're not there to be compassionate, they're there to get their money.

Terrible Terrible situation, hope for the best possible outcome.

[Sorted]

Originally Posted by Yaw

Once we even covered something that was 6 months

We had a client sue us as he had an accident 6 months after the lapse of his policy, we went him the renewal - He didn't pay, we sent him the outstanding notice - he didn't pay, we went him the letter telling him his policy will be cancelled in 7 days if not paid - he didn't pay then we sent him the cancellation notice - no payment still.........

When we went to court our solicitor advised us that the judge is known to not like insurance company's - so guess what happened, the guy won and the judge said we had to pay.

We then took it to the high court and the previous judge got a smack on the wrist and the ruling was overturned so we didnt have to pay.

What a crock of !!!!!!!!! At least at the end of the day we won but it was a huge waste of time, Should be if you don't pay your not covered, just like Car Regsitartion Now, there is no 28 days grace, if its not paid on or before the renewal date then your car is not registered.

[Scott]

I got caught out when I was 17. Thought I was covered - I wasn't and I parked my pride & joy into the back of a Toyota Townace with 37km's on the clock. $4k damage to mine, $7k damage to his. Took me years to pay off. Fortunately, he was insured with Lumley General who were very reasonable whilst extracting every cent from me. We set up a "no interest" payment plan, took about 5 years to pay it off whilst I was still making payments on the wagon.

Tell her to seek legal advice, if no go there just start a payment plan on repairing the other vehicle (or even look at replacing it for them if it's more economical).

[ltd]

Get legal advice, and get an engineers inspection of the brakes. There may be an issue there, and if so it would most certainly be actionable. If the brakes are proven to be fine and in working order then she will most likely have to pay for the damage. Furthermore, finance companies sometimes repossess cars that have no comprehensive insurance, as their investment is endangered as your friend has demonstrated.

[Buddy 1]

Originally Posted by Green X

I have had the brakes, well master cylinder Fail just like that, One second it's all fine then the next oh XHIT!! With 18Ft of boat in tow, I had to drop the auto tranny in 1st at 70km/h wile standing on the Brake pedal with both feet to pull up, it was like driving a 1930's truck with mechanical drum brakes only worse. the brake pedal had like 1inch of travel and it was rock hard.

It is possible that this is what happened to you friend, and not being derogatory to any lady members hear but because she was a Girl she probably didn't have the strength in the legs to get enough Force on the brake pedal to get em too work.

Cheers.

But if the Brakes Failed then they are still not working & can be checked by a mechanic as LTD said above even if the car cannot be driven unless the accident caused brake damage.

They do not fail for no reason & then decide to work again.

And as LS said if she had not payed her insurance when it was due she knew this fact & made her choice to take the risk & the Insurance company will not pay & unless she can prove she did not know it had expired she has no case.

Also she would have been charged with Neg Driving I assume.

Not nice for her but just say a a driver was not paying attention properly & ran into the back of a vehicle in front then I would feel sorry for the driver in front coz they did not make the driver behind them not pay attention.

I am not saying this is your friends case but it does sound pretty sus.

[Yaw]

Originally Posted by holmsy

just pull the whole. cover me or my business goes elsewhere. worth a shot

That won't work. There is no cover business to pull away, the policy is already lapsed and over 35 days overdue. basically your saying let me pay my $400 premium so you can pay out my accident of $20,000

*figures above plucked from the air for illistration purposes only*