Injured Bicyclist Cannot Collect Damages From Driver’s Optional Liability Coverage Be

[wc1934]

This stinks

http://agencychecklists.com/2015/06/16/altered-license-nullifies-injured-bicyclists-ability-to-obtain-damages-from-drivers-optional-liability-coverage-12706/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+AgencyChecklists+%28Agency+Ch ecklists%29

[TMB]

This stinks

http://agencychecklists.com/2015/06/16/altered-license-nullifies-injured-bicyclists-ability-to-obtain-damages-from-drivers-optional-liability-coverage-12706/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+AgencyChecklists+%28Agency+Ch ecklists%29

Hardly surprising.

In point of fact there was no valid contract to start with, why should the insurer pay in respect of a non-contract?

[bcroslin]

I ride with a bunch of lawyers and they all carry additional (and expensive) uninsured motorist coverage on their policies specifically in the case of getting hit by a car while riding their bike. Many people in FL drive with no insurance coverage even though it's mandated by the state. You hear stories all the time of people getting into car wrecks and the person who caused it has no insurance and so you're SOL.

[rwsaunders]

I ride with a bunch of lawyers and they all carry additional (and expensive) uninsured motorist coverage on their policies specifically in the case of getting hit by a car while riding their bike. Many people in FL drive with no insurance coverage even though it's mandated by the state. You hear stories all the time of people getting into car wrecks and the person who caused it has no insurance and so you're SOL.

You are wise to carry uninsured/underinsured coverage on your auto policy, given the many motorists who either don't have a valid license, don't bother with insurance or who only have enough insurance to address the mandated minimum coverage.

For example, here is PA's minimum coverage...not much.

Medical Benefits — This pays medical bills for you and others who are covered by your policy, regardless of fault. The minimum limit is $5,000 of coverage. Higher limits are available if you so choose.

Bodily Injury Liability — If you injure someone in a car accident, this coverage pays their medical and rehabilitation expenses and any damages for which you are found liable. The minimum limit is $15,000/$30,000. The $15,000 pays for injuries to one person, while the $30,000 represents the total available for one accident.

Property Damage Liability — If you damage someone’s property in an accident and you are at fault, this coverage pays for it. The minimum limit is $5,000 of coverage.

Some companies offer a single limit of $35,000 which meets the bodily injury liability and property damage liability minimum requirements.

[mg2ride]

This stinks

http://agencychecklists.com/2015/06/16/altered-license-nullifies-injured-bicyclists-ability-to-obtain-damages-from-drivers-optional-liability-coverage-12706/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+AgencyChecklists+%28Agency+Ch ecklists%29

While I'm very sorry for the cyclist why would you want the Insurance company held liable?

[Aaron O]

While I'm very sorry for the cyclist why would you want the Insurance company held liable?
He's not holding the insurance company responsible, he's holding the vehicle operator responsible, who had selected an insurance policy that was potentially applicable. The vehicle owner enters a contract with the insurer where for a set amount of money, the insurer agrees to accept assumption of a fixed level of risk in the form of liability.

I'Ve seen these cases go the other way too...the argument is that the insurance company didn't do it's due diligence on the front end and took the money - signaling offer and acceptance of service. The representations part speaks to another element of contract, and are especially relevant in insurance policies.

[wc1934]

While I'm very sorry for the cyclist why would you want the Insurance company held liable?

I guess I missed my own post - hahaha.
Where did I suggested that the insurance company should be held liable?

[djg21]

I ride with a bunch of lawyers and they all carry additional (and expensive) uninsured motorist coverage on their policies specifically in the case of getting hit by a car while riding their bike. Many people in FL drive with no insurance coverage even though it's mandated by the state. You hear stories all the time of people getting into car wrecks and the person who caused it has no insurance and so you're SOL.

Supplemental uninsured/underinsured motorist ("SUM") coverage is not that expensive, and often is tied to liability, so when you raise your limits on one the other is increased. This will cover you while you are riding your bike, and really is crucial because the state-mandated minimum coverages are pretty pathetic. I got hit in 2006 and the driver had a minimal policy. My SUM coverage paid out to my policy limit, which was relatively high. It kept me out of bankruptcy.

[mg2ride]

I guess I missed my own post - hahaha.
Where did I suggested that the insurance company should be held liable?

I guess I misunderstood your OP.

It does stink that an uninsured motorist hit a cyclist.

Of course it would stink if an uninsured motorist hit a runner, skate boarder, jogger, rope skipper, motorcycle rider, hop scotch player or any other person not currently in the act of a violent felony.

[djg21]

I guess I misunderstood your OP.

It does stink that an uninsured motorist hit a cyclist.

Of course it would stink if an uninsured motorist hit a runner, skate boarder, jogger, rope skipper, motorcycle rider, hop scotch player or any other person not currently in the act of a violent felony.

I'm a little surprised by the decision (as reported). I'd think the Court would have made the insurer pay out on the cyclist's claim, and then let the insurer sue the driver/auto owner to recoup the payment. This opinion is based more on the "law" of the "deep pocket" than anything else. It's not often that you see a victim left with no real remedy, and you know the driver and owner here are judgment-proof.

[Peter P.]

I'll presume the victim still had recourse against the vehicle owner through a civil suit. The fact that the vehicle was technically uninsured would, I would think, be in the victim's favor in such a civil suit.

Of course, this assumes the vehicle owner has assets to pay out a judgment.

[Aaron O]

I'm a little surprised by the decision (as reported). I'd think the Court would have made the insurer pay out on the cyclist's claim, and then let the insurer sue the driver/auto owner to recoup the payment. This opinion is based more on the "law" of the "deep pocket" than anything else. It's not often that you see a victim left with no real remedy, and you know the driver and owner here are judgment-proof.

That's exactly how I would have thought it would get decided in my state. The insurance company had the opportunity to examine the license, they took the payments...I would think their remedy is to sue the policy holder for the representations/breach.

[Mikej]

For anybody who cares, you can get a "pedestrian" flyer on an umbrella policy that covers everybody who lives under the roof who may be injured by a vehicle while walking. Includes cyclists. Something to look into for EVERY rider on this board IMHO

[menschita]

As someone who is currently recovering from being hit by an uninsured driver, our group is patiently waiting for our day in court. My lawyer said that it was a small price to up or add uninsured coverage to your auto policy. I upped mine to 100k for the future... Which I really hope is never needed. This round of injury has been plenty!

[Don49]

At least in California the under/uninsured driver has to be identified to use the uninsured coverage. So with a hit and run the coverage won't apply as the driver is unknown. Found that in the small print.

[HenryA]

This right here:


For anybody who cares, you can get a "pedestrian" flyer on an umbrella policy that covers everybody who lives under the roof who may be injured by a vehicle while walking. Includes cyclists. Something to look into for EVERY rider on this board IMHO


And add a ton of uninsured motorist coverage to your auto policy. Its very cheap to add millions of dollars worth of coverage.

[benb]

I have always carried the uninsured motorist coverage on my policy.. I think this situation is a little more f'ed up than that though given how regulated insurance is in MA.

The insurance company should probably be held liable for falsely representing to the DMV and police that this vehicle was properly registered & insured. The insurer electronically sends this info to the state in Massachusetts. We just went through this as we switched to Geico and they kept screwing up the electronic records transfer and my wife's car came extremely close to having it's registration revoked.. it was 100% the insurance companies fault and we almost got stuck with the bill and/or the fines & ticket.

If Commerce had correctly IDed this policy as fraudulent earlier they would have revoked the insurance, the DMV would have revoked the registration, and the vehicle would probably have been pulled over before the unlicensed driver had a chance to nearly kill someone.

I'll have to look into the umbrella policy for coverage when bicycling.. I was hit once in 2011 while cycling in Massachusetts (where I live) but the driver was totally upstanding and had valid insurance and I had no issues. This loophole is scary.

[Lewis Moon]

Supplemental uninsured/underinsured motorist ("SUM") coverage is not that expensive, and often is tied to liability, so when you raise your limits on one the other is increased. This will cover you while you are riding your bike, and really is crucial because the state-mandated minimum coverages are pretty pathetic. I got hit in 2006 and the driver had a minimal policy. My SUM coverage paid out to my policy limit, which was relatively high. It kept me out of bankruptcy.

How did a bike crash bring you close to bankruptcy? None of my bikes are worth more than $1500 replacement value, I have health insurance and a couple of years of accrued sick leave. I figure I'm covered. What was the big drain?

[Mark McM]

Just my opinion but ...

It seems to me that that in this instance, the insurance company issued the policy, so it is liable for damages to the cyclist. It is true that the driver has defrauded the insurance company, but the insurance company had a greater duty and opportunity to confirm the eligibility of the driver, than the cyclist did in deciding to ride on a street on which an ineligible driver was driving.

If the insurance company in good faith wanted to be able to be able to protected against ineligible drivers, they should have taken out an insurance policy against that. (How's that for irony!)

[benb]

How did a bike crash bring you close to bankruptcy? None of my bikes are worth more than $1500 replacement value, I have health insurance and a couple of years of accrued sick leave. I figure I'm covered. What was the big drain?

Don't know about NYS but he mentioned 2006.. you could very well have had a lifetime max on your health insurance which could be exceeded by a traumatic injury back then.

There are ways for your health insurance to deny coverage in auto accidents too..

I have Harvard Pilgrim.. they automatically deny a wide class of injuries (that are all common/possible in cycling) until you prove a car wasn't involved. I do think they pay out once all the auto insurance policies have been exhausted though.

[mg2ride]

... It is true that the driver has defrauded the insurance company, but the insurance company had a greater duty and opportunity to confirm the eligibility of the driver, ....

The story is a little hard to follow so maybe I'm wrong but I got the impression that the driver was not the same person that ensured the vehicle and the driver was even unlicensed.

I'm not sure what due diligence the insurance company could have done.

[djg21]

How did a bike crash bring you close to bankruptcy? None of my bikes are worth more than $1500 replacement value, I have health insurance and a couple of years of accrued sick leave. I figure I'm covered. What was the big drain?

The bike was the least of my issues.

I didn't just crash my bike. I was hit head on by a senior citizen in a Mercury Marquis and went face first through his windshield and roof. My Litespeed Vortex was broken in half; the Mercury was totaled (no joke -- I destroyed the roof-line). I also broke my jaw and most of the bones in my face, destroyed a shoulder, broke a number of vertebrae, and suffered significant brain trauma. I was in an ICU for a number of weeks and went through multiple surgeries to repair my broken facial bones and a destroyed shoulder. I had substantial sick leave and vacation accrued (months of both) and used all of it. I could not return to work for a substantial time after my accident.

I also couldn't be left alone for significant periods once home from the hospital and had to be carted around to almost daily appointments with my various doctors, and physical therapists, and occupational therapists, and orthodontist, etc. My wife therefore had to take leave from her job, essentially to babysit me.

My medical expenses were largely covered between no-fault and my health insurance. But the driver who hit me had minimal insurance and no assets. His insurer paid out the policy relatively quickly. It was a token amount.

If my wife and I had to remain out on leave from our jobs any longer than we did, we would have become strapped and had difficulty covering things like the mortgage, car payments and student debt I was still repaying. The disability insurance I carry through my employer would have paid a fraction of my salary. Fortunately, I had substantial SUM coverage and my insurer paid out the policy limit almost immediately. Even after paying my lawyer his fee (you don't want to navigate no-fault insurance alone, especially after a head injury), my SUM was enough to pay my bills and put some cash aside in the event of an emergency. It essentially paid me for all the vacation and sick leave I had to use and gave me one less thing to worry about. I am glad I had it.