Ignoring an Insurance Claim in Texas (house, landscaping, buy)

[aaauger]

A month ago, a driver caused an accident and provided us with insurance information. According to the insurance carrier, the driver won't respond to the claim. According to Texas Department of Insurance, the insurance carrier has no further responsibility and we would have to file a claim in civil court. But here's the weird part: if the driver has no assets, we will receive nothing, even though the driver was insured. Isn't the point of mandated insurance to provide financial responsibility? Why buy insurance if you have no assets? What's the insurance carrier's incentive to contact the insured?

Side note: Why not file against our own insurance? Because we would pay a deductible and our premium would increase (regardless of fault). Insurance companies will only subrogate a claim above a certain dollar amount.

[momof2dfw]

The insurance company CAN try and go and contact their insured. I've seen that done firsthand as we had that happen when a person lost control and ended up in one of our business parking lots and took out a sign and landscaping. We had the police report and all. They would never call their agent to report it so their insurance company literally went to their house and knocked on their door.

[hamiltonpl]

Your intuition is right. That's one of the many lies an insurance company will tell you to get you to stop trying. The truth is someone has to make a claim, but it doesn't have to be the person that caused the accident. If your scenario was correct, every time the insured died in a horrible accident there would be no insurance claim. The person who caused the accident rarely reports it. Instead, it's usually the person who was hurt reports it. Your common sense is correct.

I had a case where I sued a drunk driver -- who was prosecuted for intoxication assault -- for hitting a grandmother and grandchild. The grandmother spent six weeks in the hospital and had over $100,000 in medical bills. The insurance company paid the policy limits without the insured ever being responsive. In fact, the insured evaded service of process of my petition.

An insurance company has a "duty to defend" their insured in court. Therefore, the insurance company will have to show up and pay the claim. Suing them is probably the only way for them to take you seriously. Most of the time, they should pay you for your medical bills -- times three. If you're not getting that, go hire a lawyer.

You can also go after your own underinsured/unisured policy. It is probably a small amount -- but it is still worth it. Call your insurance company to find out.

[aaauger]

The insurance company claims exactly the above: that either the insured needs to admit to the accident or that there needs to be a 3rd party witness. We pointed out that we are in possession of complete data on the driver: policy, address, driver, etc. The insurance carrier's response? We could have committed identity theft to obtain this information.

The fact that we have this information would help us in court. The fact that the insured refuses to cooperate would help us in court. But there's a very strong possibility that the insured will not show up in court and has no assets. Do you know whether the "duty to defend" exists if the person continues to refuse to cooperate? If the insured ignores the summons and we notify the insurance carrier of the legal action, is the insurance carrier required to defend?

We are getting so many conflicting pieces of information. (BTW, one thing we have learned is to always call the police, regardless that the police seem to say otherwise.) We called our state rep today and asked this basic question: What is the point of mandated insurance if the insured refuses to use it?

[neddy]

we had the same thing happen to us.The guy never contacted his insurance but we had police reports wtc so his company went ahead ruled in our favor by default. It helps if your indurance company can give a call over to his insurance and find out whats up.

[hamiltonpl]

The insurance company claims exactly the above: that either the insured needs to admit to the accident or that there needs to be a 3rd party witness. We pointed out that we are in possession of complete data on the driver: policy, address, driver, etc. The insurance carrier's response? We could have committed identity theft to obtain this information.

You could also be a space alien. At this point, you don't need me to tell you that they'll try anything to get out of paying you.

Originally Posted by aaauger

. Do you know whether the "duty to defend" exists if the person continues to refuse to cooperate? If the insured ignores the summons and we notify the insurance carrier of the legal action, is the insurance carrier required to defend?

Yes.

We are getting so many conflicting pieces of information. (BTW, one thing we have learned is to always call the police, regardless that the police seem to say otherwise.) We called our state rep today and asked this basic question: What is the point of mandated insurance if the insured refuses to use it?

A police report would make this a lot easier. But it's not impossible without one. Your state representative is not going to do a thing about this. At this point, it seems like you've called everyone except someone who can help you -- a lawyer.

[momof2dfw]

Did you happen to take any pictures of the accident scene that also shows their insureds vehicle w/ the license plate number and all visible? If so, then send them to them as well. ALWAYS take pictures of the scene of the accident.

This is just one reason why that I will gladly be a witness to an accident if I did witness it.

[aaauger]

We have served as witnesses many times. There was one crazy accident where some kids where clowning around for blocks and finally cut off another vehicle. They claimed that they were the victim. Not so.

Anyway, according to the Texas Department of Insurance, an insurance carrier has no duty to defend if the insured breaches the contract by refusing to respond. So the worst case scenario here is that:

1) we can't file under uninsured motorist because the other driver is insured
2) we have to file under collision which has a much higher deductible
3) our insurance carrier refuses to pursue the other insurance carrier because of the dollar amount
4) the insured gets away for free: premium doesn't increase because the claim wasn't settled
5) the insurance carrier gets away for free

TDI acknowledges that it is a huge loophole in the law: Texas now has a system to prove whether drivers have insurance but there's no penalty for refusing to use it.

[hamiltonpl]

Originally Posted by aaauger

We have served as witnesses many times. There was one crazy accident where some kids where clowning around for blocks and finally cut off another vehicle. They claimed that they were the victim. Not so.

Anyway, according to the Texas Department of Insurance, an insurance carrier has no duty to defend if the insured breaches the contract by refusing to respond. So the worst case scenario here is that:

1) we can't file under uninsured motorist because the other driver is insured
2) we have to file under collision which has a much higher deductible
3) our insurance carrier refuses to pursue the other insurance carrier because of the dollar amount
4) the insured gets away for free: premium doesn't increase because the claim wasn't settled
5) the insurance carrier gets away for free

TDI acknowledges that it is a huge loophole in the law: Texas now has a system to prove whether drivers have insurance but there's no penalty for refusing to use it.

The Texas Department of Insurance is not on your side. They're on the insurance company's side. They're bought and paid for by the insurance companies. The person will respond if they are sued because their pocketbook is at stake.

[Poltracker]

Originally Posted by aaauger

We have served as witnesses many times. There was one crazy accident where some kids where clowning around for blocks and finally cut off another vehicle. They claimed that they were the victim. Not so.

Anyway, according to the Texas Department of Insurance, an insurance carrier has no duty to defend if the insured breaches the contract by refusing to respond. So the worst case scenario here is that:

1) we can't file under uninsured motorist because the other driver is insured
2) we have to file under collision which has a much higher deductible
3) our insurance carrier refuses to pursue the other insurance carrier because of the dollar amount
4) the insured gets away for free: premium doesn't increase because the claim wasn't settled
5) the insurance carrier gets away for free

TDI acknowledges that it is a huge loophole in the law: Texas now has a system to prove whether drivers have insurance but there's no penalty for refusing to use it.

You need to file a case in court. Chances are that the insured party will call his insuarnce carrier the moment he gets served. If he does not....well, he did have a car and he may have other assets. Don't assume he doesn't have any.