Insurance claim quandry

by Vikram Reddy
(Sunnyvale, CA, USA)

Hello,

I have very unique situation and appreciate any advice or direction you can provide on the issue. Please bear with me on details of the story,

I had a combined Progressive auto insurance policy with my wife on our 2 cars, a 2003 Honda Accord and a 1999 Isuzu Rodeo. We were going through a separation last year and she made changes to policy removing coverage for my vehicle (Isuzu Rodeo) and leaving me as Insured driver on May 01/2010.

On May 21st 2010 I got into read end collision with a independent contractor vehicle without any bodily injuries and some rear end damage to the truck (1991 Ford Econoline). I called progressive immediately and reported the claim also in the process explaining my personal situation about separation. After 3 days progressive called me denied the claim citing me as an uninsured driver and at that time I did not have access to documentation to verify. I recently got a copy of the insurance policy document from May 2010 and it lists me as an insured driver for liability but does not list my vehicle.


After denial of claim by progressive, I was in a way extorted by the other driver with a shop estimate (from his friends shop)for property damage to pay out of pocket. I paid the driver $3500 dollar for his damages and took a signed notarized document saying that he would not pursue any further claims on the issue. After 6 months I got a notice from an attorney representing the other party's insurance company citing me as uninsured driver and demanding $750 for property damage.

My questions are

a) Now I know that I was an insured driver and progressive denied the liability claim, how do I proceed ?

b) I was insured at the time of the accident and there was no reason for me to pay the other driver $3500 out of pocket. I now realize I was scammed in this whole process, is there a way to recover the money ?

c) What do I say to attorney of the 3rd party insurance company ?


Appreciate any information or guidance you can provide.

Answer:


Hello Vikram ,

You need to talk to a lawyer. If there is a chance that there was indeed coverage, a lawyer could get attorneys fees if she/he can reverse that decision. If there is coverage, the may have to pay for the money you already paid.

Regarding the other lawyer, if you have a notarized document settling the claim, it is likely that your attorney can make the other lawyer go away on those basis.

I hope this helps,


As always, it is very important that you talk with a local attorney!
Good Luck,
Auto Insurance Claim Advice