Insurance Company Not Settling Claim

[Amchamoion15]

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?

 

[PayrollHRGuy]

You haven't yet been sued. There is no way you or your insurance company (or the attorney they assign to the case) can force the other side to sue.

 

[adjusterjack]

What can I do to expedite the closure of the claim?

Nothing. The insurance company is in the process of defending you as is its contractual obligation to you.

Is it bad faith for my insurer to drag their feet and keep an open claim against me

No, not bad faith at all. Your insurer has apparently denied the claim because you weren't at fault. Your insurer isn't the one keeping the claim open.

(which is clearly not my fault, again video evidence is available) when it is hurting my insurability?

My guess is that it's not the claim that's causing the high rates, but the fact that you didn't have insurance for a year.

Either go back to your former insurance company for a quote or keep shopping or accept the best rate you can get and then wait until it comes down after you've been insured for a while.

Bottom line: Your former insurance company is doing exactly what it's supposed to do.

 

[zddoodah]

But turns out this claim has never been settled

Why didn't the carrier resolve the claim? Based on what you've told us, it should have been denied.

my insurer is taking no action to close the claim and have me free from the at fault claim against me. [It seems] to be wanting to wait to see if the attorney does anything within the 2 year statute of limitation.

Standard procedure.

What can I do to expedite the closure of the claim?

Call and bug the adjuster handling the claim for your insurer.

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?

No, but there is no reason why a claim that hasn't been resolved against you should be impacting your rates. That's something you'd need to discuss with an agent (i.e., it's not in the adjuster's purview).

 

[Amchamoion15]

Why didn't the carrier resolve the claim? Based on what you've told us, it should have been denied.




Standard procedure.




Call and bug the adjuster handling the claim for your insurer.




No, but there is no reason why a claim that hasn't been resolved against you should be impacting your rates. That's something you'd need to discuss with an agent (i.e., it's not in the adjuster's purview).

The claim was denied, but the adjuster says nothing can be done since the ball is in the other party's court to initiate closure of the claim.

 

[PayrollHRGuy]

The claim was denied, but the adjuster says nothing can be done since the ball is in the other party's court to initiate closure of the claim.

The adjuster is correct. They denied the claim the ball is in the other guys court.

 

[zddoodah]

The claim was denied, but the adjuster says nothing can be done since the ball is in the other party's court to initiate closure of the claim.

That doesn't make much sense. The denial of the claim effectively "closes" the claim. It is, of course, true that there's always the possibility of a lawsuit until the statute of limitations expires, but that doesn't mean the claim isn't "closed," and there's nothing that the claimant can do "to initiate closure." It's not like the claimant (or the claimant's attorney) is going to respond to a denial and say, "ok, ok, we give in."

As mentioned, the denial of a claim should not have any impact on your rates, and I agree that what "adjusterjack" mentioned makes a lot more sense.

 

[ALawyer]

Be careful what you wish for. The claim ideally will just go away of its own accord with the expiration of the statute of limitations. If you or your insurer were to push the driver and s/he files suit, you'd likely become involved in litigation that will cost you FAR more in terms of time off from work, travel expense, and headache than the possible increase in auto insurance premium. This sleeping dog should be left alone.

 

[bertha01]

I shall be following this

 

[quincy]

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