Auto Insurance Claims: Insurance or No Insurance, motorist insurance, payment coverage

Question
QUESTION: I was driving a vehicle owned by my employer.  I had sold my vehicle a few weeks earlier and they lent me their vehicle until I bought a new one.  The vehicle had valid plates and a current valid insurance card in the vehicle.  I was invovled in an accident and apparently there was really no insurance on the vehicle because of cancellation or some other reason.  I was told by my employer that the vehicle was insured.  I was named as the primary defendent in a lawsuit by the other party and their lawyers managed to get their ininsured motorist insurance.  Now that insurance company is wanting me to pay up.  Is this legal?  can I lose my license when it was the responsibility of my employer to carry the insurance on their vehicle?  And on top of that there was a valid insurance card in the vehicle, the same one that was used to license the vehicle in the first place.  Thanks

ANSWER: Hi Brandon,
The Insurance ID card merely indicates that coverage was in force when the plates on the car were renewed.  It could have lapsed or been cancelled for lack of payment before the date of the accident.  This is turning into quiet an unusual situation.  Under Insurance Law, the owner of the car is usually first in line for for liability when there is an uninsured accident.  Although the driver is always co-liable along with the owner, it's highly unusual for the adverse company to be wiling a claim solely against you.

When you sold your car, instead of canceling your policy, you should have had it changed to a 'named non-owners policy'.
This would have given you Bodily Injury, Property Damage, Medical Payment coverage and Uninsured Motorist protection while driving any car that you did not own.  On the day you purchased a replacement car, a simple phone call would have changed it back to an owners policy.
Yes, your state is going to suspend your drivers license unless you now purchase a 'named non-owners policy' and have that company file a SR-22 proof of insurance form with your state for the next 3 years.
The judgement secured by the adverse company should have been jointly against the owner of the vehicle and you as the driver.  You should not be responsible for more than 50% of the award.
I'm totally surprised that the entire award wasn't against your employer, because they are always considered the ones with the 'deep pockets' and the ones most likely to be able to afford payment.  Have a talk with the  adverse carrier and try to get them to bill 100% of the claim to the owner of the car, or at least 50/50.  If they won't budge on this, you may need to secure an attorney to help change this to 50/50.
I hope this has been of help.  Please write again if you have more questions.
Sincerely,
Bennie
San Francisco Bay Area 12-17-07 2:20 AM PST







---------- FOLLOW-UP ----------

QUESTION: Okay thanks.  I am guessing different states have different laws regarding
this.  Heres another thing for me.  This accident happened about 3 years ago
and I was just served the papers the other day on it.  Apparently it took about
two years for the people to get their uninsured motorists payment.  It then
took the insurance company another 7 or 8 months to file the suit.  Both
myself and my employer were named defendants but it was me they were
looking to serve because I was the primary one.  Also I own a vehicle now
and have my own insurance.  Does this cover me or do I still need to
purchase a named non owner's policy as well for situations like this?  also
after three years I have not heard anything from the Driver's License
Department.  How long will it be until they require a SR-22?  ps I live in
Kentucky.

Answer
Hi Dave,
You can have an SR-22 (if required) added to your existing policy.  An SR-22 is usually required for 3 years from the date of the accident.
The Statue of Limitations to recover a Personal Injury Claim in the State of Kentucky is one year, unless the injured party has retained an Attorney to file claim against Allstate under the Uninsured Motorist Bodily Injury Clause,
before the year was up he/she lost all right of legal recovery for personal injury claim.  The time frame to recover car damage is 3 years.
I still feel that your employer, as owner of the car owes 50% of this claim and that you should hire an attorney to review all these documents before you agree to any payment.
Sincerely,
Bennie
12-17-07 12:22 PM PST