You need to formally (in writing, Return Receipt) demand that your insurance company defend you from the claims, and if it refuses, you will have to speak to a local attorney about both defending you against the claims being made against you and about getting your insurance company to cover the cost of your defense.
You should consult with an attorney that does insurance bad faith. Sounds like you're insurance company is trying to take the easy way out.
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Get your documents in order - auto pay agreement and written confirmation from your credit card company that your card was in good standing and no attempted transaction by insurance carrier. submit documents to the carrier demanding they provide coverage and defend. Send a copy along with a complaint to the department of insurance. If this doesn't work hire an attorney to sue for breach of contract, etc...
The other answers give very good approaches to dealing with this problem. You should also contact the California Department of insurance. Link below
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I am sorry that your insurance company is abandoning you this way. I agree with the responding car accident attorneys to review your case with an insurance lawyer to help you receive the coverage that you have payed for in the case of a car accident. Best of luck
Consult a local insurance coverage attorney - many offer free initial consultations
This is not intended to be legal advise or as legal representation. I am a California personal injury attorney . Be aware that every state has its own statute of limitations; and statutes & case laws that govern the handling of these matters.
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