Insurance carrier will not pay for damages to my car.

I just switched insurance companies. I told the agent that I needed full coverage because I had a loan on my car. They faxed me forms and I signed and returned. A few days later I hit the back of another vehicle. No damage to hit vehicle but damage to my car was $5000.00.

The agent said accident was not covered because I didn’t have the correct coverage on my insurance.

The agent had not put this coverage on the insurance plan. Even though I signed the contract I believe it is his fault for not putting full coverage on the contract. My mother was with me and heard me say that I needed full coverage. What can I do?

Answer:

Well, this is going to be a problem with the agent. Usually, this matter will have to be determined by the type of agent you have (a “capture agent” or an “independent agent”). The capture agent is that who works only for one insurance company. The independent agent is a broker or one that sells policies for several insurance companies.

The issue here is the concept of “binder.” An independent agent is YOUR agent and usually cannot bind an insurance company to a policy or coverage. On the other hand, a captured agent can bind insurance by simply saying that the coverage will be provided.

In either situation, you may have an “errors and omissions” claims against the agent.

You will have to talk to an attorney about that.

Good Luck
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