At fault car accident and insurance is denying property damage claim

[mobbdeep]

What is the name of your state? Texas

Hello, my girlfriends cousin was involved in a car accident two weeks ago where she was going a bit too fast approaching an intersection resulting in her not being able to slow down fast enough and instead ran the red light to which she collided with another car then into a subdivision monument sign.

She has liability insurance and her mom is telling us that her insurance is denying the coverage for the damage of the monument sign which was $19K and telling her that she (her mother) could be sued by the people who own the subdivision and her license suspended since her daughter was on her insurance when it happened. The owner of the subdivision or whomever has been asking her what she can pay towards the $19K but unfortunately she doesn't have anything she can contribute as she's a single mother of 2 and just bought a house a month and a half ago.

Does that sound right and can her insurance deny covering the $19K monument sign damage since she was at fault even if she has property damage coverage?

Thanks!

 

[LdiJ]

What is the name of your state? Texas

Hello, my girlfriends cousin was involved in a car accident a few weeks ago where she was going a bit too fast approaching an intersection resulting in her not being able to slow down fast enough and instead ran the red light to which she hit collided with another car then into a subdivision monument sign.

She has liability insurance and her mom is telling us that her insurance is denying the coverage for the damage of the monument sign which was $19K and telling her that she (her mother) could be sued by the people who own the subdivision and her license suspended since her daughter was on her insurance when it happened. The owner of the subdivision or whomever has been asking her what she can pay towards the $19K but unfortunately she doesn't have anything she can contribute as she's a single mother of 2 and just bought a house a month and a half ago.

Does that sound right and can her insurance deny covering the $19K monument sign damage since she was at fault even if she has property damage coverage?

Thanks!

It is certainly possible that there is something in the policy that allows them to deny coverage for the monument damage. If her mother owned the car her mother could certainly be sued for any damage that the insurance doesn't cover. I cannot see any circumstance however where her mother's license could be suspended as long as the car had the minimum legal coverage.

 

[Zigner]

Your girlfriend's cousin (and her mother) will need to speak to the insurance company to find out why coverage is being denied.

 

[zddoodah]

her mom is telling us that her insurance is denying the coverage

Why is your girlfriend's cousin's mother (her aunt, I assume) telling you anything at all about this. This isn't any of your or your girlfriend's business. And, unless your girlfriend's cousin is a minor or the mother owns the car, it's not any of the mother's business. How old is the cousin? Who owns the car?

her insurance is denying the coverage for the damage of the monument sign

Notwithstanding what I wrote above, on what basis is the insurer denying coverage? Also, what does "is denying the coverage" mean? Has the insurer issued a claim determination stating that coverage is denied? If so, the claim determination letter should state a reason for the denial. If no such letter has been issued, then why does anyone think coverage might be denied?

can her insurance deny covering the $19K monument sign damage

Yes. The insurer can deny coverage, but I doubt that's what you intended to ask. I assume the intended question is whether a denial is legally proper, and it's not possible for anyone who hasn't read the policy to answer that question.

 

[adjusterjack]

Does that sound right and can her insurance deny covering the $19K monument sign damage since she was at fault even if she has property damage coverage?

Exactly how much property damage liability insurance is there? It's possible that the damage to the other vehicle exceed the limits so there would not be enough money to cover both claims. The problem there is that industry practice is to pro-rate the coverage between both claims so that each claimant gets a piece of the pie.

Denying coverage for the monument, outright, could amount to a violation of Texas fair claims practices law or bad faith.

that she (her mother) could be sued by the people who own the subdivision

Which is certainly possible under several legal doctrines including, but not limited to, negligent entrustment and, if the driver is a minor, Texas law might hold the parent strictly liable for the minor's acts.

The owner of the subdivision or whomever has been asking her what she can pay towards the $19K but unfortunately she doesn't have anything she can contribute as she's a single mother of 2 and just bought a house a month and a half ago.

Then she should stop talking to the owner and have a candid conversation with her claim rep as to what is going on.

We certainly don't have any idea since we are getting third hand information and, frankly, you and your girlfriend should stay out of it.

 

[mobbdeep]

While I understand it's technically none of my business, she posted it in a group chat that I'm apart of along with the other aunts in my girlfriends family and they're unfamiliar with how all of this works due to neither one of them being in an accident before so I figured I'd ask here to maybe get a little bit of guidance but apparently I shouldn't have done so. To add, she's 19 years old. Additionally, I was able to get some more information what's going on.

According to my girlfriends aunt, "My insurance company called me and said they are not covering the damages of the sign and they spoke with the other parties insurance who was involved and they denied the claim as well as our claim. Our claim was denied because she was an exempt driver and the other parties insurance denied it because it was her fault. I'll be sure to call my insurance company in the morning to further discuss what's going on."

Additionally, the aunt mentioned that the sign was a local "Welcome to XX" city sign and whomever she spoke to told her that since both insurance companies are denying the claims that she could be sued and her license would also be suspended. When she mentioned why she doesn't have money to pay towards the $19K, they said they will speak with the city board as to what can be done to possibly help her without them suing. So, to me, it sounds like the vehicle was insured on her mothers insurance policy but her daughter was not listed as a covered driver which makes sense as to why all of this is being said.

 

[quincy]

While I understand it's technically none of my business, she posted it in a group chat that I'm apart of along with the other aunts in my girlfriends family and they're unfamiliar with how all of this works due to neither one of them being in an accident before so I figured I'd ask here to maybe get a little bit of guidance but apparently I shouldn't have done so. To add, she's 19 years old. Additionally, I was able to get some more information what's going on.

According to my girlfriends aunt, "My insurance company called me and said they are not covering the damages of the sign and they spoke with the other parties insurance who was involved and they denied the claim as well as our claim. Our claim was denied because she was an exempt driver and the other parties insurance denied it because it was her fault. I'll be sure to call my insurance company in the morning to further discuss what's going on."

Additionally, the aunt mentioned that the sign was a local "Welcome to XX" city sign and whomever she spoke to told her that since both insurance companies are denying the claims that she could be sued and her license would also be suspended. When she mentioned why she doesn't have money to pay towards the $19K, they said they will speak with the city board as to what can be done to possibly help her without them suing. So, to me, it sounds like the vehicle was insured on her mothers insurance policy but her daughter was not listed as a covered driver which makes sense as to why all of this is being said.

Mobbdeep, group chatting about a relative involved in an active accident case is a really bad idea. What is said potentially can be used against the cousin and her mom if either or both of them are sued.

 

[adjusterjack]

According to my girlfriends aunt

We are still getting incomplete third hand information.

Please have your girlfriend's aunt register here so we get direct answers to what is happening to her and her daughter.

If you, or she, is not willing to do that then there is nothing to discuss.

Speculation without appropriate information is futile and the only way we get it is by having a discussion with the aunt.

And just so you understand where I (a retired career insurance man) am coming from I will tell you that there is no such thing as an "exempt" driver. I'm not going to explain that to you but I will be happy to discuss it with the aunt and find out what is really happening.

 

[LdiJ]

We are still getting incomplete third hand information.

Please have your girlfriend's aunt register here so we get direct answers to what is happening to her and her daughter.

If you, or she, is not willing to do that then there is nothing to discuss.

Speculation without appropriate information is futile and the only way we get it is by having a discussion with the aunt.

And just so you understand where I (a retired career insurance man) am coming from I will tell you that there is no such thing as an "exempt" driver. I'm not going to explain that to you but I will be happy to discuss it with the aunt and find out what is really happening.

I suspect he meant "excluded" driver but I do agree with all of that.