Colorado family fights car insurer over alleged lapse in coverage after car is stolen

DENVER (KDVR) — In April of final 12 months, Jessi Loughran, 20, purchased her first automobile—a 2019 Hyundai Tucson. She was solely in a position to take pleasure in it for about 5 months.

The SUV was stolen from an Aurora residence complicated parking zone in September.

Police discovered it wrecked in Westminster and arrested a 20-year-old girl who officers mentioned was behind the wheel.

“There was plenty of alcohol and medicines within the automobile,” Loughran mentioned. “[The suspect] drove over 2,000 miles in that automobile … and that’s in like three weeks.”

Loughran, who remains to be making funds on the automobile, was anxious to have her insurance coverage coverage kick in to assist financially. However, she mentioned, coping with GEICO has been a nightmare.

“I did all the pieces on the cellular app,” Loughran’s father, Dave, mentioned. “I entered all the data.”

Dave mentioned he added his daughter’s new automobile to his GEICO coverage the identical day she purchased the car. He mentioned he later found GEICO — by no fault of his personal — by no means formally added the automobile to the coverage.

Dave mentioned he shopped round and went with one other firm, coincidentally, on the identical day his daughter’s automobile was stolen. He mentioned he verified there wouldn’t be a lapse in protection between insurance policies and produced paperwork exhibiting the GEICO coverage prolonged days after the automobile was stolen.

Dave mentioned GEICO retroactively cancelled his coverage to 12:01 a.m. on Sept. 12, 2020, making a lapse in protection he didn’t conform to.

“The GEICO coverage was supposed to finish three days after [the car was stolen],” Jessi mentioned.

In an announcement, GEICO mentioned partly, “… our coverage is to pay claims once we insure the car on the time of the loss and have collected the related premium. If no premium is collected for a car, then there isn’t any protection …”

Dave insists his premiums have been paid. The household has created a GoFundMe as they attempt to navigate their authorized choices.

Right here is GEICO’s full assertion:

On account of privateness issues, we’re not ready to touch upon a selected buyer’s insurance coverage declare.

Nonetheless, now we have reviewed this matter, and our coverage is to pay claims once we insure the car on the time of the loss and have collected the related premium. If no premium is collected for a car, then there isn’t any protection for subsequent losses.

Additionally it is vital to notice {that a} coverage doc is issued at a cut-off date and should not replicate subsequent modifications requested by the client.