Covered, Covered, Not Covered

By Ben Glass, Esquire

Benjamin W. Glass and Associates

. https://www.benglasslaw.com/

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Covered, Covered, Not Covered

If you've ever been involved in a car accident, you know the stress, the confusion, and the emotional strain that accompanies it.

Imagine that in the deluge of information you receive you hear the words, “We are currently investigating coverage.” What does this mean? Should you be concerned?

Coverage investigations arise when an insurer has a question as to whether the policy of an insured is applicable. There are two primary causes of this question, which are noted below.

First, and unfortunately most common, is that the policy is no longer active. In some instances, insured individuals provide an old policy number from a leftover insurance card they had in the dashboard. The quick resolution in that situation is to have the insured or insurer locate the policy number for the active policy in that person's name. However, if an active policy number cannot be found, it's likely that the policy lapsed from non-payment of policy premiums.

The second cause of a coverage investigation is really a grab bag of possible reasons. If a policy is active, the only remaining question to be answered regarding coverage is whether or not the policy is applicable to the facts surrounding/related to an accident. Concerns like permissive use, temporary replacement vehicle, or resident relative are just a few examples of coverage questions an insurer may investigate. Each one of those concerns will require additional work from the insurer. In many instances, this increases the timeline of when clarity can be provided about whether or not coverage will be extended. In some cases, this can take weeks.

If you're not at fault for an accident and the at-fault party's insurance carrier tells you they are investigating coverage for the accident, then call your own insurer. File a claim through your own insurance company. This ensures you aren't waiting days or possibly weeks before you start getting your life back together. If a coverage investigation is positively resolved and you have already filed through your own insurance company, then the expenses incurred by your insurance company will be shifted to the other carrier in accordance with how that policy applies.

This is far from an exhaustive list of how coverage investigations can arise or be resolved, so remember to do your absolute best to understand your current insurance policy and how it applies. If you can't understand the policy and you don't understand the insurance company's explanation, you may need to see a competent attorney in your area.