Insurance Company Not Settling Claim

[adm2020]

Hello,

I was involved in an accident in Feb 2019 (in NY state, I live in PA), which I was not at fault for (we have video evidence). I hit a car that ran a stop sign trying to go straight through an intersection from a right turn only stop sign. The at fault driver has an attorney and is claiming bodily injury against me (there was no apparent injury at the scene). I was made aware of this a few weeks after the accident. Now in May 2020, I am trying to get car insurance again (I live in the city so I didn't have a car May 2019-2020). But turns out this claim has never been settled, and it is affecting my rates and ability to get reasonable car insurance premium again. The at fault driver's attorneys is taking no action in moving the claim along, and likewise, my insurer is taking no action to close the claim and have me free from the at fault claim against me. They seem to be wanting to wait to see if the attorney does anything within the 2 year statute of limitation.

Here is what I have a problem with how this being handled and need advise on how to move forward -

My insurance company did not communicate with me in the last year that this claim against me is still open. I only found out when trying to apply for insurance again with another company, and that it will raise the premium on a new policy.

What can I do to expedite the closure of the claim? Is it bad faith for my insurer to drag their feet and keep an open claim against me (which is clearly not my fault, again video evidence is available) when it is hurting my insurability?

 

[fed up]

What can you do? Nothing much. You quit your carrier in May, why would they to communicate with you? There is an injury claim. They cannot close the claim until the injured party says all injuries are fixed and that there will be no more bills. There is no Bad Faith (nice word choice). Your video proves nothing if either company wants to argue contributory Negligence and since it is your company keeping the Claim open chances are your company has accepted liability.
I doubt any new application will accept you as clean with the open claim and no insurance for at least 6 months. Let's hope that you had enough liability coverage and Personal Property coverage to pay the bills. Pennsylvania is low, New York is not much better

 

[geneseehill]

Background here. In New York there is a three year statute of limitations for Bodily Injury. Thus, the claimant and his attorney will not even have to present a claim for damages or file suit to protect the Statute until then. It is not uncommon to get demand packages from counsel years after the loss. New York has a Pure Comparative Negligence Law which means if you are 1% at fault the can seek recovery of 1% of damages. Your carrier has no option but to leave the claim open until that time the case is resolved via settlement. Regardless of the eventual outcome on liability terms the loss will show up on a CLUE report which shows the incident. That information is available to most carriers who subscribe to outside firms such as LEXIS NEXIS to provide them with loss history information to help them determine rates. If suit is filed and all discovery is complete your carrier may ask your defense counsel to file a Motion for Summary Judgement based on evidence. However, if there is an issue of fact the Courts generally don't agree to such Motions. All the Plaintiff attorney needs to do is allege multiple allegations of negligence in the Complaint for this to be a moot point.

You can try asking your carrier Insurance Adjuster to send you a Determination of Liability in writing that you were not at fault. Some will comply. I've done it in the past on clear no Liability situations such as a rear-ender. You can provide this to your agent or new carrier if you are looking for insurance quote directly. Good Luck.

P.S,--Make sure you notify your carrier right away if you are served with a Summons & Complaint. You can also look online in the County where the loss took place in to see if the other driver has filed suit. Sometimes they file Suit and have difficulty serving you..especially, if you live in another state.