QuestionI have a truck that has liability insurance. I let my boyfriend borrow it and he was struck by a tractor trailer that failed to signal onto the ramp. The police officer took both of our information and said it was just and accident no one was at fault. Now my insurance has denied the claim to fix the tractor trailer because he is not listed on my policy. He said that since is drivers license has my address he is automatically excluded and he is not on the policy so they are dening coverage. Please help I do not know what to do. I cannot offord to fix the tractor trailer.
Answer Hello Vicky,
There are several important issues here. Let's begin with the accident itself.
First of all, police officer's do not make liability decisions for insurance companies. While it is good that he did not hold your boyfriend responsible, this is but one piece of the puzzle. Insurance companies make liability decisions. They must do that based on facts and evidence. From your description, it does not sound as if your insurance company made a liability decision. They just wanted to deny coverage and move forward.
Your description of the accident is brief. Was your boyfriend able to avoid the accident? Did the failure to signal come suddenly, so much so that he could not take evasive action? If that is the case, the tractor trailer would be completely fault, at least in my opinion. On the other hand, if your boyfriend had enough time to avoid the accident, or if he failed to take the last chance to avoid it, then there would be shared liability. In TX, you have the 51% liability rule, which means that if a party is more than 51% at fault, the party cannot file a liability claim against the other driver. So if the truck driver was more than 51% at fault, he cannot file a claim against your liability insurance.
So who decides on liability? Theoretically, insurance companies do. If your carrier was going to cover their loss, they might well fight this out with the other carrier. Ultimately in any liability dispute, liability rests with a jury - assuming of course the case goes to trial. Practically speaking accident cases usually only go to trial if injuries are involved.
My point is, who says you are responsible for paying the tractor trailer for its damages!?! Who made the decision as to who was 51%+ at fault?
Now, on to the second issue, that of coverage. First, you say that your claim has been denied. Has it been denied in writing? Did the denial letter cite the policy provision that applied? Claims must be denied in writing. The adjuster can't just pick up the phone and say, "You know what, I'm just not going to pay your claim."
As to your boyfriend's address, does he live with you? Here's the point. An insurance company can deny coverage if you misrepresented yourself on your original application of insurance. If you lived together when you first took out the policy and you did not disclose all driver's in the residence, in this case your boyfriend, you are guilty of misrepresentation. In that case, you would have no coverage. The reason for the denial would be material misrepresentation.
However, if you did not reside together when you took out the policy, there was no misrep. Once you have completed your original application, it is the insurance company's obligation to update changes to your household when the policy renews. So, it they renewed your policy and never asked you for updates in your household, this would probably not be a violation of your policy. You would have to read the policy - the misrepresentation portion - to determine if you are obligated to update members of your household following the expiration of the first policy period, or at any point in time for that matter.
Hope this makes sense to you. Here's the synopsis. You have two issues: liability and coverage. You need to sort out both. And, if your company is denying your claim, it must be in writing with the specific policy provision for that denial noted in the correspondence.
Good luck.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
