Auto Insurance Claims: No PIP in accident, No PIP in accident


Question
Hi Anne,

I have been involved in a very confusing accident.  I am a California resident, with a CA auto insurance policy.  I do not have PIP/MedPay on my auto policy, as it is not required in CA.

I was involved in an accident which occurred in Connecticut, but the car in which I was in (I was a passenger) is insured through Pennsylvania.  I have been told that CT is not a deemer state, which means that the laws follow the vehicle, not the state.  Is this correct?

I am told by the vehicle owner's auto insurance (PA) that they will not cover my medical expenses since PA is a no-fault state.  I do not carry PIP, so my auto-insurance will not cover, either.  

What are my next steps?

Thanks,
Marisa

Answer
Hello Marisa,

I had to look this up. The liability arises in the state where the accident occurred (CT). There are "Financial Responsibility" clauses in every auto policy that "adjusts" to the state where the accident occurs.

For example, the required liability property damage limit for Alabama is $10,000. "You" have an Alabama policy. You travel to Arkansas where the minimum limit is $15,000. You policy "adjust" to that new required limit ($15,000).

Think about this. If the "other state" requirements do not adjust, then a driver from one state to another state would be violating the new state law by simply crossing one border.

Contact the CT department of insurance and ask them about this situation. You may need the help of an attorney.

There is one more issue you may wan to think about:

The liability issue.

If the driver of the car you were on is at fault, then that driver will be liable to you (he caused an accident in a at fault state). (The laws of PA do not apply to CT, they are independent jurisdiction). They would have to pay for your medical bills under the liability coverage.

What if the driver is not at fault (a third driver caused the accident). Then you may have a jointly and severe liable driver. If the driver of your vehicle is even 1% at fault (and most of the time you can put 1% liability on any driver), then the would have to protect those who are 0% at fault (usually passengers). After they pay, they can seek contribution against the driver that was the majority at fault.

There is likely coverage for this, but the adjusters are playing games to exclude you. The accident happened in CT and that is a at fault state. You can sue them there and you can get a judgment there. The limits (the minimum PIP requirement) likely adjust also.

Talk to an attorney.

I hope this helps
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