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No coverage for motorcycle accident

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Prodaytrader

Junior Member
What is the name of your state (only U.S. law)?
I live in Texas, accident took place in Wisconsin


I was rear ended on a rented motorcycle a few weeks ago by another motorcycle. I reported the accident to my insurance to which they started an investigation to determine whether or not I had coverage for rented motorcycles. They claim I do not have coverage for rented motorcycles now and have officially absolved themselves of the incident. Ordinarily I wouldn't be concerned with such things especially given that I was the one up front, but I am concerned about some things and need advice.

First the damage for both bikes is a total loss which should come to around 40k for both bikes. Second the people that hit me weren't wearing helmets so their injuries were quite significant which I estimate to be around 20k or so but I have no way of knowing for sure. Second the accident took place in Wisconsin which apparently has different laws regarding negligence. I was first told about these laws at the accident and it was called the 50/50 law which I later learned is really comparative negligence laws. His agent told me that the insurance companies would sit down, determine comparative negligence and then decided which portions would be handed to which parties. Since I don't have coverage now, this could become problematic for me.

The other caveat that I should mention is that prior to renting the bike I called my agent on the phone and asked them whether or not I had coverage for rented motorcycles. I was told that it was covered under my liability insurance for both damage caused by me to other vehicles as well as any damage that might be caused to the bike I was renting. Their assurances that I was covered, during that phone call, was the determining factor in my decision to not purchase additional rental insurance by the renting party. During that call I was talked into bumping coverages quite significantly for several reasons, but primarily because riding bikes is dangerous. If push comes to shove I will have to sue my insurance because they clearly told me I would be covered when in fact my policy doesn't cover such things. However this is really nothing new as best I can tell since every insurance company that has ever gone to court was because they didn't want to pay for damages beyond the scope of the policy as they saw it. Really I doubt that my agency would allow me to take any suit to a jury given the circumstantial evidence against them in this particular situation, but at this time I really don't have much cause to sue them.

I'm not out of pocket anything at this moment other then some personal gear that was damaged like my leathers and so forth. I wasn't injured, my bike wasn't destroyed since I was renting it, I didn't lose work and so forth. All the damage was caused to other peoples property so really I don't have to pursue this unless others pursue me. My question is this: is there anything I should be doing now that I know my insurance company is not going to pay for any bills that come my way? Exactly how is it that other parties will go about holding me responsible for these bills anyway? As best I can determine this comparative negligence thing only comes into play when the insurance companies are interested in settling the manner outside of court or a jury decides that at least in part I am responsible. I guess I am wondering what is going to happen if the rental company and his insurance decide that I am partially responsible for this accident. They cant just make a decision and say I owe then 20% or something and make that stick can they? They would need a court decision to hold me responsible and since the accident report is so clearly in my favor, I highly doubt they would come after me unless there is something I am overlooking.

I cant sue for damages if nobody holds me responsible for damages, but since I wont have a seat at the table where the insurance companies assign responsibility I am worried that they will determine that I am partially responsible since I am an easy target and then send me the bills. Do I need to be represented during those discussions? My agency will not even sit at the table at this point which I can understand since they wont be likely to agree to anything since they aren't going to pay anything.

Do I need to be proactive to ensure the rental company or his insurance doesn't hold me responsible or do I wait till I am sued before doing anything? I cant sue my insurance company for failure to pay a claim when no claim has been submitted to me. I'm just really confused about this process since my agency is stepping out of the picture and it worries me that secret discussions are transpiring and I have no insurance representation. What's to prevent his insurance company from determining that I am fully responsible despite the accident report and sending me bills or worse refusing to pay my rental company for their bike. The rental company will surely come after me if his insurance fails to pay for their bike given the contract I signed. I haven't read the rental contract but I'm sure it holds me fully responsible if his insurance doesn't pay the claim.

Thoughts?
 


ecmst12

Senior Member
I wouldn't worry about being held responsible for getting rear ended. But your agent has his own errors and omissions insurance could come into play here. What did he say when you confronted him about his misinformation?
 

justalayman

Senior Member
My question is this: is there anything I should be doing now that I know my insurance company is not going to pay for any bills that come my way?
absolutely. You are liable to whomever you rented the motorcycle from for the damages the bike you rented.

Exactly how is it that other parties will go about holding me responsible for these bills anyway?
because you rented a bike in good condition and returned it in useless condition. You can be held liable for that.

As best I can determine this comparative negligence thing only comes into play when the insurance companies are interested in settling the manner outside of court or a jury decides that at least in part I am responsible.
It is the legal standard for determining who pay what and how much of what you get.

Do you have any fault in this accident?

I guess I am wondering what is going to happen if the rental company and his insurance decide that I am partially responsible for this accident.
The accident is irrelevent to what you may owe the rental company. Depending on what your contract stated, you may be liable for the entire motorcycle or just a portion of it.

Of course, the other driver, if at fault, is liable to you but that does not alter your liability to the rental comapny.

They cant just make a decision and say I owe then 20% or something and make that stick can they?
sure they can. They can say something like 100% if the contract allowed for it.

They would need a court decision to hold me responsible and since the accident report is so clearly in my favor, I highly doubt they would come after me unless there is something I am overlooking.
Not true.Like I said; what you are liable to the rental comampany is not controlled by what the other driver may be liable to you for.

Does your contract with the rental company allow for any coverage?

I cant sue for damages if nobody holds me responsible for damages, but since I wont have a seat at the table where the insurance companies assign responsibility I am worried that they will determine that I am partially responsible since I am an easy target and then send me the bills. Do I need to be represented during those discussions? My agency will not even sit at the table at this point which I can understand since they wont be likely to agree to anything since they aren't going to pay anything.

Do I need to be proactive to ensure the rental company or his insurance doesn't hold me responsible or do I wait till I am sued before doing anything? I cant sue my insurance company for failure to pay a claim when no claim has been submitted to me. I'm just really confused about this process since my agency is stepping out of the picture and it worries me that secret discussions are transpiring and I have no insurance representation. What's to prevent his insurance company from determining that I am fully responsible despite the accident report and sending me bills or worse refusing to pay my rental company for their bike. The rental company will surely come after me if his insurance fails to pay for their bike given the contract I signed. I haven't read the rental contract but I'm sure it holds me fully responsible if his insurance doesn't pay the claim.
 

ecmst12

Senior Member
The rental company is not who OP is concerned about. He is concerned about the other driver's insurance. And I don't see any legal reason they could place any liability on you.
 

Prodaytrader

Junior Member
I have understood my liability with the rental company all a long. I get that I had a contract with them and regardless of whether or not the other guys insurance pays up, I am still held liable for the rest of whatever it is the company thinks they are owed. This is exactly why I am wondering what to do. See at this point, nobody is actually calling me and saying I need to pay them. At this point it has only been a month so I am still a tad early in the process, but I really get the feeling that if something is going to go wrong with this it's going to happen with that contract. So to my point. Who is it that decides I owe for partial damages? Is that a court or is that something done between insurance companies? See if it's done in court, then it's a nobrainer, I go get a lawyer and sue everyone. However, if it's the insurance companies, then I also have a problem since I don't have a representative making that conversation. Which means the other parties might just make me totally responsible. Catch my point? What do I do at this point, since nobody is asking me to pay for damages in any form? I cant sue my insurance company for not representing me, if there is no need for me to be represented. I really want to get to the bottom of this so please ask your questions and I will try to respond as best I can.

Thanks
 

justalayman

Senior Member
well, he hasn't given any facts or info that would anybody to believe he does not have fault in this other than he was hit from the rear. I know most accidents consider the person in the rear at fault but I can find many incidents where a motorcycle driver would have at least a contributing factor in an accident when being hit in the rear.

As I said, he needs to worry about the rental agency and wht he will owe them. Even if he had no fault in this, he may very well still owe them.

He apparently isn't worried about what the rental company will seek from him but it appears due to his ignorance of what he may owe them.

Here is a excerpt from him:
my bike wasn't destroyed since I was renting it
All the damage was caused to other peoples property so really I don't have to pursue this unless others pursue me.
Well, the others that will persue him is the rental agency. He does not understand that or there is insurance in place that will not be able to come back on him. Even if there is insurance to cover "his" bike, if the contract calls for him to be liable for damages, he is still on the hook.

I am merely trying to provide the OP with all possibilities of others (including the rental agency) looking for money for him.
 

Prodaytrader

Junior Member
I think everyone is on the same page here regarding my liability to the rental contract and my liability to the renting company. I do understand that and that is my primary concern. However, nobody and this includes the rental company for the bike I was renting, has asked me to replace their property. Given this was 4 weeks ago, I can only assume 2 things. First, the rental company has already been paid or second they believe they will be paid by the person in the rear. Either that or they are already pursuing a lawsuit against me, but I would think they would attempt to recover damages first prior to suing me or at least let me know they aren't happy with the other guys insurance. Whatever the case, at this point they haven't even notified me one way or another so why should I stir the pot? Does that make since? Is there any reason that anyone can think of for me to be proactive when none of the other interested parties are even hassling me at this point? Someone told me to contact the rental company and see what they had to say because it's possible they have already recovered damages for their bike, but again, I see no reason to contact anyone at this moment since nobody is hassling me.

Let me see if I can explain my dilemma another way. I don't have insurance coverage for this accident, I know that there are two bikes destroyed neither or which I actually own, and we have some medical bills likely owed because the other parties were injured. My insurance will not be getting involved voluntarily at this point however nobody has asked me or my insurance to pay for anything. What should I do at this point? Does it make since to go on the offensive when nobody is asking me to pay for anything or should I just lie low and see what happens? What are the dangers of waiting and seeing what happens? Whatever those dangers might be, how would going on the offensive change them? For example, it's possible that if I wait and see what happens, the rental company might ask me to pay for the entire bike, but until they do so, I cant sue my insurance agency, right?
 
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justalayman

Senior Member
You are correct in your asssumption that being active at this point will do no good.

What I see as a possibility that would allow the time delay so far;

the rental companies insurance company is taking care of the bike you rented. They are the folks that would most likely come after you for any damages. Since it has only been 4 weeks, I do not see it as such a great time that it seems odd or they have no intentions of contacting you.

The thing is; based upon your contract, the injuring party may have no liability to the rental agency or as their representative, their insurance company. They may owe to you, only, as the injured party and you will owe to the rental agency.

Like I said, a lot may be in your rental agreement that could change who owes what to whom. Not knowing what it provides for leaves me at a loss to include it.

I guess it's just time to wait and see.

Stop back and let us know if anything happens. I am interested in hearing the conclusion to this situation.
 

Prodaytrader

Junior Member
Wait and see seems like the best I can do for now. If anything new transpires I will be sure and let everyone know. I suspect that anything other then total resolution will spur me to hire a lawyer.
 

ecmst12

Senior Member
The rental company will *probably* go after the at fault party directly. They will only bother you if the at fault party denies payment for something.
 

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