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

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DENVER (KDVR) — In April of last year, Jessi Loughran, 20, bought her first car—a 2019 Hyundai Tucson. She was only able to enjoy it for about five months.

The SUV was stolen from an Aurora apartment complex parking lot in September.

Police found it wrecked in Westminster and arrested a 20-year-old woman who officers said was behind the wheel.

“There was a lot of alcohol and drugs in the car,” Loughran said. “[The suspect] drove over 2,000 miles in that car … and that’s in like three weeks.”

Loughran, who is still making payments on the car, was anxious to have her insurance policy kick in to help financially. But, she said, dealing with GEICO has been a nightmare.

“I did everything on the mobile app,” Loughran’s father, Dave, said. “I entered all the information.”

Dave said he added his daughter’s new car to his GEICO policy the same day she bought the vehicle. He said he later discovered GEICO — through no fault of his own — never officially added the car to the policy.

Dave said he shopped around and went with another company, coincidentally, on the same day his daughter’s car was stolen. He said he verified there would not be a lapse in coverage between policies and produced documents showing the GEICO policy extended days after the car was stolen.

Dave said GEICO retroactively cancelled his policy to 12:01 a.m. on Sept. 12, 2020, creating a lapse in coverage he did not agree to.

“The GEICO policy was supposed to end three days after [the car was stolen],” Jessi said.

In a statement, GEICO said in part, “… our policy is to pay claims when we insure the vehicle at the time of the loss and have collected the associated premium. If no premium is collected for a vehicle, then there is no coverage …”

Dave insists his premiums were paid. The family has created a GoFundMe as they try to navigate their legal options.

Here is GEICO’s full statement:

Due to privacy concerns, we are not in a position to comment on a specific customer’s insurance claim.

However, we have reviewed this matter, and our policy is to pay claims when we insure the vehicle at the time of the loss and have collected the associated premium. If no premium is collected for a vehicle, then there is no coverage for subsequent losses.

It is also important to note that a policy document is issued at a point in time and may not reflect subsequent changes requested by the customer.

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