I bought a car and I went through an automatic car wash. The car wash malfunctioned and totaled my car but I still had temp tags on it. Progressive is telling me they cannot pay out because I did not have the car registered? The car was still within the timeframe of the temp tags and now I do not have the money to register it. But I paid for their insurance. What can I do?
Jared Dollen asked 2 months ago 1 Answers
Hi Jared,
Firstly, Progressive’s position may not be legally correct in Arkansas. Under Arkansas law (Arkansas Code § 27-14-703 which covers temporary tags), if you had valid insurance coverage and were operating the vehicle with valid temporary tags within the legal timeframe (usually 60 days from purchase), you should be covered. The temporary tag serves as valid registration during that period. We recommend that you contact your carrier to discuss this matter further. You may want to speak with a supervisor, as your situation is unique and not common.
If you haven’t already, document everything – Take photos of the damage, gather your insurance policy documents, proof of purchase of the car, and your temporary tag documentation showing you were within the legal timeframe.
If you receive pushback or no response from your carrier, you can file a formal written complaint with the Arkansas Insurance Department (AID) at 1-800-852-5494 or online:
https://insurance.arkansas.gov/pages/consumer-services/consumer-services/file-a-complaint/
You can explain that Progressive is denying a claim despite you having valid coverage and operating within the legal temporary tag period.
You may also want to consider also pursuing a claim against the car wash facility:
Their liability insurance may cover the damage regardless of your registration status
Document the date/time of the incident and any witnesses
Request their incident report if one was filed
If Progressive continues to deny the claim, consider consulting with an Arkansas consumer protection attorney. Many offer free initial consultations and might work on contingency if they believe your case is strong. UP provides resources to legal professionals in your area https://uphelp.org/sponsor-location/arkansas/
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