QuestionQUESTION: Recently Geico denied my insurance claim, I am currently trying to assess options and see if there is any chance to reverse the denial.
Summary: I accidentally backed into a car while driving a rental vehicle, and am insured on my ex-roommate's policy (friend, not a relation). Geico has currently denied the claim, on the basis that there is some clause which specifies only the primary insured and relatives are covered when driving non-owned cars. The policy is from AL, however accident happened in CA (just moved recently).
Can you please help with the following questions :-
1) I had a reasonable expectation of the same coverage as any other driver on the policy, is there any way to convince Geico to honor this claim?
2) If my policy is not an option, can I ask the owner of the other car (that I damaged) to file a claim for uninsured motorist coverage and pay him the deductible? Does his insurance sue me, or is the coverage simply applied automatically where other party is not covered (as here, thru claim denial when I was sure I had insurance)?
3) If not, do I have any legal recourse (assuming clause is true, I haven't recd. denial letter as yet), and if so can you estimate an approximate cost?
4) Any other suggestions that might help in any way would be most welcome!
ANSWER: Hi Alok,
The clause in an insurance policy that extends coverage to non-owned automobiles only applies to the named insured and resident relatives.
Geico has legally denied your claim as would any other company.
Your first option is to report this accident to the car rental company. They usually provide liability and property damage coverage as part of the rental. Their property damage will provide coverage to repair the car that you hit. Unless you purchased CDW coverage with the rental, you will be responsible for the damage to the rental car plus owe them for 'loss of use' for the number of days that the car is in the repair shop.
You have no recourse against Geico, they have acted according to the legal wording of the policy.
I trust this has been of help, please write again if I can provide more assistance.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
---------- FOLLOW-UP ----------
QUESTION: Thank you for the quick response. You mentioned in your reply, that '... report this accident to the car rental company. They usually provide liability and property damage coverage as part of the rental.'.
I hadn't purchased their LDW coverage as I believed I was covered under the Geico policy, is there any implicit coverage for rentals under California law. I would greatly appreciate any details to claim this, if so.
Thanks,
Alok
AnswerHi Alok,
In order for a car to be licensed in California, there must be proof of insurance provided to the state.
Since the car is registered to the rental agency, they are required by law to carry Liability and Property Damage.
Their insurance will be responsible for repairing the other vehicle.
Since you did not purchase the LDW coverage, you are respomsible for the damage to the car and the lost income of the rental agency while the car is out of service being repaired.
My original advise still applies, make a report to the car rental agency.
I can not provide you any absolute guarantees, I can only advise and point you in the right direction.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
