Auto Insurance Claims: Other drivers insurance company refuses to pay because of forced insurance coverage policy, NJ no fault law

Question
QUESTION: My husband's truck was in a car accident that was the other driver's fault. The finance company placed forced insurance. On the date of the accident his insurance coverage had lapsed. The other driver's insurance company is now refusing to pay for the repairs because it doesn't recognize the forced placed coverage. The car has been sitting at the autobody shop for over a month because of the other driver's insurance company kept giving me the run around. What can be done to get them to pay for the car repairs that were clearly caused by their insured driver. Is it true that a insurance company by law does not have to pay for any damages caused by their insured person if the driver (not at fault) does not have car insurance or has forced placed insurance?

ANSWER: Sonji,

  I am unable to answer your question without information on the State where the accident occurred.  Laws vary by state and indeed there are some states where an uninsured party is barred from presenting a claim.  Also, forced coverage from a lienholder is almost always just for damages to the vehicle, not for liability resulting from an accident.  I'll be happy to more fully address your question if you'll provide the state information.

JP

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

QUESTION: The state is New Jersey. Can I get the damages to my car repaired withoutwithout having to pay for them myself.

Answer
Sorry for the delay.  Don't take this as legal advice.  The statute that I found is as follows:

NJSA 39:6A-4.5 Loss of right to sue for failure to insure, for DWI, for intentional acts.

14. a. Any person who, at the time of an automobile accident resulting in injuries to that person, is required but fails to maintain medical expense benefits coverage mandated by section 4 of P.L.1972, c.70 (C.39:6A-4), section 4 of P.L.1998, c.21 (C.39:6A-3.1) or section 45 of P.L.2003, c.89 (C.39:6A-3.3) shall have no cause of action for recovery of economic or noneconomic loss sustained as a result of an accident while operating an uninsured automobile.

It seems that driving an uninsured vehicle (uninsured by the coverages mandated as listed above, so forced leinholder insurance doesn't count) is indeed a bar to damage recovery in New Jersey.

So the answer to your followup is likely NO.  You will be required to bear the burden of your damages due to being uninsured as required by NJ law.  Of course, this answer does not replace competent legal advice.

I hope this helps, and I'm sorry my answer wasn't to your benefit.