Bad Faith Insurance Story
Background: My grandfather bought a car along with an insurance policy for me. Although my name couldn’t be listed on the insurance at that time, we informed the car dealer that I’d be the one driving, and I planned to sort out the insurance details in the following weeks.
The Incident: Unfortunately, while driving the car, I was involved in a hit-and-run accident where I was t-boned. Thankfully, I wasn’t injured. However, when I filed a claim, the insurance adjuster informed me that they wouldn’t cover it because my grandfather’s policy was set up as “named driver only.”
Discovery: While discussing the situation with my tow truck driver, I decided to review the policy. To my shock, I found out that the insurance agent had created a fictitious driver’s license number for my grandfather, who has never held a license in his life.
Next Steps: I’ve received mixed advice from various sources. My tow truck driver suggested I tell the adjuster I was picking up food for my grandpa (which is true; I was on my way to the liquor store in the same shopping center). I’ve also consulted with a couple of lawyers who advised me to reach out to my state’s Insurance Commission.
Question: Given these options, what would be the best path forward?
I’m sorry to hear about your situation; it sounds incredibly frustrating. Given the complexities involved, here are some suggestions:
Consult with an Attorney: Since you’ve already spoken with a few lawyers, consider choosing one who specializes in insurance claims or bad faith insurance practices. They can provide personalized advice based on the specifics of your situation.
Document Everything: Gather all related documentation, including the insurance policy, evidence of the accident, and any correspondence with the insurance company. This will be critical, especially if you need to escalate the issue.
Contact the Insurance Commission: Reporting the situation to your state’s insurance commission can be a useful step. They can help mediate the dispute and investigate the insurance company’s practices, particularly the issue of the fake driver’s license number.
Communicate Clearly: If you decide to contact the insurance adjuster, ensure that you clearly explain the situation without making any false claims. Misrepresenting facts can backfire.
Consider Your Future Options: Depending on the advice from your lawyer and your own comfort level, you might need to evaluate the potential for legal action against the insurance company if they continue to refuse coverage in bad faith.
Ultimately, working with a qualified attorney will provide the best guidance for your specific circumstances. Good luck, and I hope you’re able to resolve this issue soon!