Stalled Insurance: Untraditional plans affect all on the road

CHICAGO (WLS) -- If you're in a car wreck, you want your coverage to kick in quickly, but that is not always the case if you, or the person who hits you, has a "non-standard" insurance policy.

The I-Team found cases in which people waited several weeks, or even more than a year, for what they call "stalled insurance."

Todd Jeffers says he filed a claim with another driver's insurance company after he was hit, but that company, the "low cost" or "non-standard" insurer Unique didn't pay the claim for almost 2 months.

"It made me feel like they didn't want to pay that they didn't want to handle my claim," Jeffers says.

He got a check for almost $1,300 after the I-Team got involved.

"Now all of the sudden they are cooperating," he says.

According to the Illinois Department of Insurance, the wait could be considered a reasonable amount of time; under state law a company has 30 days to send a check if the claim is approved and only has to send a letter of explanation if a third party claim is still open after 60 days.

Charles Turner says he was also hit by a driver with unique insurance. He waited almost a year and a half for a response to his claims, only to have them denied. Unique says that their insured customer "failed to cooperate," which is a "direct breach of the terms and conditions of his policy."

"It's always like they are stringing me along and hope that I just go away," Turner says.

In 2014, the Illinois Department of Insurance reviewed Unique because of the volume of complaints. The company faced 23 violations and was fined $100,000. In 2013, the state says Unique had the sixth-highest complaint ratio when compared to other auto insurers. However, the Better Business Bureau gives unique an A+ rating.

Unique also tells the I-Team in a letter that it has taken steps to better serve customers, like increase the number of phone lines.

"There is not specific statutes that say how they have to be governed in terms of handling these claims right after the accident," says attorney Neal Gainsberg.

Gainsberg has been fighting for auto insurers for 20 years. He says if you get hit by someone who has a non-standard insurance policy you should file a claim with your own provider and pay the deductibleas your company may be able to get your deductible back from the other insurance company.

One of Gainsberg's clients, Sabrina Sylva, has full coverage with Direct Auto in Old Town. They say she waited almost two weeks to get money for damages and rental car coverage after a hit and run.

"I feel like it is a slap in the face," Sylva says.

The BBB has issued an alert on Direct Auto insurance and gives it an F, noting 22 complaints in the last year. In 2013 it had the third highest complaint ratio according to the Illinois Department of Insurance.

Direct Auto didn't comment on those records but said Sylva's claim was handled in a timely manner, "seven working days." Sylva and her attorney point out they weren't able to begin the process on her Saturday crash until Monday when the office was open. They also say the company insisted on using mail via the US Postal Service instead of email.

"That's how these low cost insurance companies start the whole claims process," Gainsberg says. "Instead of getting a car fixed right away they are looking for loopholes to or ways to see if this insurance is even valid so they don't even have to pay the claim."

Non-standard insurance providers say they provide the legally required insurance, at a reasonable cost. Many of those drivers would be otherwise considered hard to insure.

The Illinois Department of Insurance says all companies have to send written explanations for delays, within certain time periods, but laws don't specify when a claim has to be resolved.

To file a complaint with the Illinois Department of Insurance, click here.