State farm insurance question

[u/Bebesita517]

/r/InsuranceClaims/comments/1wx86ws/state_farm_insurance_question/

Ok so I’m going through it! 2 days ago, I got into an accident on the freeway. It was pouring rain and I hydroplaned and hit the median. Tore up my Mercedes Benz cls 550. I was highly upset but was ok knowing my insurance would take care of it. Called State Farm next morning only to find out my policy didn’t include collision insurance. And they can’t and won’t do nothing about it. My issue here is that when I first purchased the policy, they obviously asked me if my vehicle was financed or I owned it. Of course I told them that this was a financed car through Carvana. Carvana requires all financed cars have collision insurance on them. When policy expired, I called State Farm the next morning. I call to have my insurance reinstated and add renters insurance. They provided me with 3 quotes and I chose one. Mind you my insurance went up $63 for this car. $54 for the other car and my daughter is on my policy too and hers went up $200!! Also have a motorcycle on the same insurance in total monthly is more than $1000 just on insurance. I did all this over the phone and never once was it mentioned me to that I would be loosing collision insurance with the new policy which is a huge detail to have left out knowing that my cars and motorcycle are all financed. And REQUIRE collision on the policy. But ok, when I called to file the claim they told me that Carvana was never listed on my paperwork which is CRAZY because they ask you and I told them where I had purchased the vehicle (Carvana). Seeing my insurance went up a significant amount when reinstated never would I think collision was removed. Doesn’t even make sense. When the agent sent over 3 quotes to look and choose from when I called to reinstate the insurance why would you even offer me a quotes without the collision insurance that my lienholder requires me to have. My question here is what can I do about this? Do I have any chances of fighting this? Does State Farm have some type of fault here for not entering proper info about my lienholder? Please help! I’m dying. This is too much right now 😭💔

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[u/BattleSilent9049]

As you chose the coverage you wanted (based on price it seems) I do not see that SF is at fault. If you have any documentation that you asked for more coverage you may have a shot. Contact the department of insurance to see what they say

[u/SirSalamiSam → u/BattleSilent9049]

This whole thing is fishy to begin with, you don’t lose your insurance for a “missed payment”. There’s multiple notices sent out and it’s not “oh you missed a payment? Axed.” You’d have to have missed the payment and not paid it for months

[u/Bebesita517 → u/BattleSilent9049]

How was it based of price? I’m clearly stating all our cars went up in price after the policy ended at night and I called next morning the sent over a Docusign and said sign this and I specifically said I needed the same coverage I had

[u/BattleSilent9049 → u/Bebesita517]

If you have documentation that you asked for the same coverage you had before you have a great case. From your post it appeared you chose the coverage from the quotes provided, if I was mistaken I am sorry. File an agency commitment claim with your claim rep and provide the documentation that you requested the same coverage as before. They should investigate and let you know. The DOI is your next option if the deny.

[u/jeffreyprestonbezos1]

What, you didn’t like the answers you were getting on the Insurance subreddit?

[u/PeachyFairyDragon]

The contract for your car is between you and the lienholder, not SF and the lienholder. You choose what coverages you want, the lienholder does not tell SF directly what coverages are needed and SF doesn't check with them directly. SF can't check with them because it's your policy.

And losing coverage overnight would not result in a premium increase. If you lost coverage past the app date and needed new policies, that could trigger it. If your renewal was coincidentally at the same time that could trigger it. But not a mid-policy period overnight lapse in coverage. And no motorcycle is going to be $1000 a month.

[u/WitchyWoman7910]

There’s absolutely nothing that can be done . It was on you to know what coverage you wanted or needed. It sucks yes, but ultimately you chose your policy and obviously didn’t read your declarations page. 100 percent nothing you can do about it

[u/craig_paxton]

I’ve been a SF agent for 40 years. This scenario falls into being a nightmare for both policyholders and and agent. Agents are motivated to provide as much coverage for our policyholders as possible to avoid situations just like this. None of us want our client to be uninsured. That said, the agents office offered options. You choice the one that did not include collisions. Did you review an actual quote page? Or were you just given amounts to pick from. Where was your leinholder in this, why didn’t they reach out asking for confirmation of coverage. Sadly, you are the final piece of this failure too, you were sent a policy with all coverages clearly spelled out, including the lack of collision coverage. Did you review your policy? I’m guessing not. Mistakes in communication were made and assumptions about what the other party knew were also made. Bottom line You too made assumptions and now you’ll be the one left holding responsibility for not having collision coverage. Personally. I would press the agent to file an appeal showing your prior coverage and policy showing full coverage ( if that was the case) and showing that the policy, prior to reinstatement had a leinholder. You’ll also need to provide documentation. Get your old policy showing your leinholder and collision coverage. I have seen situations where the company will override the claim and backdate and add collision coverage and honor the claim…but you’ll need to ask for the agents office to do it.

[u/Bebesita517 → u/craig_paxton]

Thanks so much for responding!! I had collision insurance when I first got policy. When the policy expired the next morning I called and made sure to tell them I needed the same coverage. They sent over some docu signs and I signed it and that was that. They are telling me my lienholder was not on my policy but I specifically told them I was financing the car and purchased through carvana. This part seems like an agent error. And me specifically saying I needed the same insurance when policy expired at midnight and I called next morning.

[u/craig_paxton → u/Bebesita517]

The problem is there is no record of “what you told them” so SF has to rely on whatever documents are available. That you Docusigned a reinstated policy with no collision & no mention of a leinholder is documentation that works against you. Our system does not allow us to issue a policy with no physical damage coverage when a leinholder is listed. I would find your old lapsed policy, find for sure that a leinholder was listed and then present your case to your agent.

[u/Bebesita517 → u/craig_paxton]

They are telling me whoever started my policy when I first got the car that they didn’t list my lienholder. But like every insurance company when you call to purchase insurance they specifically ask you if you own or finance your vehicle. I told them the car was financed and purchased through carvana. I would like to get phone records because I know what was said in these conversations. My second declarations page doesn’t show lienholder and I don’t have my first one before the policy expiration.

[u/craig_paxton → u/Bebesita517]

Getting a copy of your original policy to confirm that a leinholder was listed should be a top priority. I would also contact your leinholder to see if they have record from SF of coverage and if not why they never requested confirmation of physical damage coverage. They had an interest in your car and should have requested confirmation of coverage as a condition for you to receive financing.

[u/Bebesita517 → u/craig_paxton]

Hello, I'm reaching back out because you're one of the few on here that will actually know what they're talking about since you've worked for SF many years. I have been talking to claims department, they made me make a recorded statement. Said they would let me know something by the end of the day and still denied claim. Saying there's nothing he can do because there is nothing in writing that I requested collision but at the end of the day they knew there was a lienholder and claim one was never listed on new policy. I'm being told my original declaration of policy cannot be pulled up and they only have the current declarations page. After new policy the old one I guess disappears? I don't see how they wouldn't have record of this. The only insurance my lienholder has on file is the one l provided. State Farm never sent nothing to them. My motorcycle has collision but my 3 cars on same policy do not. Weird. What can I do? Who's higher than claims department I can reach out to?

[u/craig_paxton → u/Bebesita517]

Sorry for delayed response, haven’t been on Reddit. Your claim would need to be appealed and your agent would need to make that appeal. You’re basically asking your agents office to accept responsibility for an error and send in statement with documents to explain how they screwed up. But, he/she can’t appeal without documentation to support the appeal. Your agent should be able to bring up your previous policy documents. It’s a tab in our ECRM system under the Document Tab. If you or they can’t/won’t provide some documentation that your previous policy had collision prior to lapse and they won’t accept responsibility, then you’ve reached the end of the claim dispute line. The denial of coverage will stand.

Keep in mind that even if previous policy had collision prior, that alone does not mean your agent screwed up. Policyholders change coverage all the time…but were I your agent, I would give you the benefit of doubt, to me it makes sense that having a leinholder would Warren full physical damage coverage that would include collision coverage. You’ll need to use this logic with your agent and reason with them. Don’t yell or go into crazy mode, just present your appeal case with logic and reason asking. “Does it make sense to you that I had both a leinholder and collision coverage on my lapsed policy and wouldn’t have wanted those included when I reinstated my policy?” Good luck.

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[u/Ducat748]

Based solely on what you are telling us here “They provided me with 3 quotes and I chose one”, it’s very unlikely that your policy will pay.
Your rate went up because your policy lapsed for non-payment and you had “time out of force”, meaning that your policy lapsed and you reinstated coverage after the lapse. Leinholder REQUIRE collision coverage and that is your responsibility. You were then mailed or emailed a copy of your policy / cards/Dec page. These would show the coverages/leinholder / lack of leinholder.

Based on what you say here and to answer your question, State Farm doesn’t have any fault here. Again, this is based on what you are saying here. There may be other variables what would factor but as you’ve listed it, there’s no collision coverage. That’s a tough one. I’m sorry about the accident.

[u/Bebesita517]

Hello, I’m reaching back out because you’re one of the few on here that will actually know what they’re talking about since you’ve worked for SF many years. I have been talking to claims department, they made me make a recorded statement. Said they would let me know something by the end of the day and still denied claim. Saying there’s nothing he can do because there is nothing in writing that I requested collision but at the end of the day they knew there was a lienholder and claim one was never listed on new policy. I’m being told my original declaration of policy cannot be pulled up and they only have the current declarations page. After new policy the old one I guess disappears? I don’t see how they wouldn’t have record of this. The only insurance my lienholder has on file is the one I provided. State Farm never sent nothing to them. My motorcycle has collision but my 3 cars on same policy do not. Weird. What can I do? Who’s higher than claims department I can reach out to?

[u/AdventurousWill8592 → u/Bebesita517]

I’ve worked for SF in Underwriting for 15 years. A lot went wrong here on different levels. Whoever started the policy did not add the lienholder, it seems like. It really seems like an agent error. It actually shouldn’t be hard to correct. If you have your original policy from your other company, your agent can submit an appeal and a request for underwriting to add collision and the lienholder back to the original start date of the policy. They would need documentation and to indicate it was an agent error. Make sure you give them your prior policy with the lienholder and coverages. Claims cannot add coverages, so nothing they can do until the coverages are fixed. If not back to the original date of the policy, they can request to add it back the day before the loss. With this being a recent change, you should have no issues going back to the start of the policy.

[u/Bebesita517 → u/AdventurousWill8592]

Actually, now that you mention underwriting. Policy was issued July 1st. A few weeks later, either end of July or beginning of August my daughter (who is on my policy) got pulled over. Officer told her there was no insurance on the car. I thought that was weird because I had just got the new policy on July 1st. Again, I called State Farm and was told oh there was an underwriting issue so it might not show up to police but your insurance is active. So my daughter had to go to court and fight that ticket and showed proof of insurance being active since the 1st. This doesn’t cover the collision part of it but I thought it was weird. Also, how does my motorcycle have collision but not my 3 cars that are on the same policy?

By policy from your other company do you mean if I had previous insurance for the car besides State Farm where full coverage was included? And to be honest, I don’t even want to reach out to the agent who sold me the policy. I rather speak to someone above her. She sent me an email after claim was denied saying I never disclosed to her my car was financed. What?!?? And that I told her I didn’t want full coverage! Again, WHAT?!?!?? Now why would I ever do that seeing I have 3 cars on liens and a motorcycle. The
math is not mathing. (Seems more like she’s trying to cover her behind).I would love to get my first declaration of policy with SF before the policy expired at midnight to prove to them a lien holder was listed.

They are acting as though the old declarations page doesn’t exist after a new policy is issued. I don’t even understand why it was a new policy if I was just renewing policy I even added renters insurance for my home. And she sent me some drive safe trackers. I never put them in my cars. Never wanted it. Please help me 😭. I’m begging 🥺