Auto Insurance Claims: closing a claim, accident occured, mechanical failure

Question
Dear Richard,
  I was in an accident on 10/23/07 where my brake pads came unglued (mechanical failure) and I rear-ended another vehicle. Luckily, there was only minor damage to my and the other motorist's vehicle. Almost 2 years later, I have moved from Utah (where the accident occured) to West Virginia. I want to register and insure my car here but when shopping for a new insurance policy I leared that no other company will insure me because I have an 'open claim'. I am currently insured under my parents (Utah) policy but have now finished school and moved out of the house and 2,000 miles to West Virginia. My insurance company is seeking damages from the break pad manufacturer. How long does it take to close a claim like this? and how long can they keep it open? My parent's agent told me he could write me a 'spin off policy' from my parent's policy where I could have my vehicle insured and registered here in West Virginia. Is this true? I feel like the company is holding me hostage. Please help.

Answer
Hi Lauren,

Unfortunately, this situation could be tied up in the courts for years.

I have never heard of an insurance company refusing to insure someone because of an open claim. You may want to check with some additional companies in WV. As a last resort, if other companies say the same, you will have to go back to the origianl company to get the spin off policy. And yes they can do that.

I hope this helps
Richard Hixenbaugh