My question involves insurance law for the state of: California
My mom was involved in a car accident last weekend in which she rear ended a car, which resulted in a three car pile up. As luck would have it, my parents have been a little behind on the bills and my dad sent the auto insurance check late but a few days ahead of the cancellation notice date. However, the insurance company did not receive the check or the check was lost in the mail, and the insurance coverage was cancelled the night before due to nonpayment.
After my mom caused the accident, my parents realized that the coverage was cancelled and went to the insurance company office to pay and reinstate the coverage right away. However, the insurance company said that since they never received the payment and the policy was cancelled, the insurance company will not likely cover the accident that occurred. We still don't know where the check is, and am waiting for the insurance company to tell us whether they will cover said accident. Now we are all concerned that my parents will lose their assets including the house.
My mom and dad are both registered owners of the car, as well as name on the insurance policy. My dad heard through the grapevine that if they took my mother's name off of the house, the claimant's insurance company will not be able to get this, since my mother is the sole person who caused the accident. Is this true?
I advised my parents that they should seek legal counsel immediately. Should they wait and see whether the insurance company will cover the accident or hire an attorney now? An attorney will be difficult for my parents to afford.
Any help is greatly appreciated, thank you sincerely.

