HHH

Hello,

A friend of mine got his GT3 involved in an accident while trying to avoid an animal. Everyone is ok, and police report were issued. However, Geico called today said they won't be able to cover the lost since driver's license was suspended. Called DMV, indeed it was suspended due to an unpaid ticket last year, but the police issued accident report never mentioned suspended license and no driving under suspension license ticket was issued. Any insurance expert want to share some thoughts? It's gonna be a very expensive fix, better to be covered by insurance.

Thanks in advance

RoyalPink

That's going to be a tough hill to climb to get insurance to cover it. Wish you the best.

GrantG

I would have your friend find a copy of his policy and search for an exclusion for not having a valid driver license. If it's there as an exclusion of liability in the policy, then it will be a difficult fight.

Also, very weird that your friend didn't know he was suspended. Usually, you have a notice requirement and an opportunity to a hearing before suspension is imposed.

josephvman

Geico is **** insurance.

RoyalPink

I would be surprised if there was an exclusion for not having a valid drivers license. Won't hurt to check. I agree that it seems odd one would have their license suspended and not be aware of it. But stranger things have happened.

Dr.Bill

Should have hit the animal. Particularly if it was a gecko.
Unless it was a cow or elk, would have been less damage.

malmasri

That is awful...

Vintage72

read the policy. it list all exclusions, which, oddly enough, are called endorsements in insurance speak. if damage from driving while on a suspended license is not excluded/no such endorsement - its covered, in theory, depending on your friend's coverage. my Farmer's policy does not exclude track damage, racing, etc. best damn policy ever.

dgoldenz

Geico paid me $54k for my Cayenne that was totaled that I paid $47k for a few months earlier. No complaints here.

seatactony

This is close but not quite.

The main body of your policy contains the primary coverage grant and standard exclusions. It may also contain endorsements tacked on separately at the end. The endorsement modify the main coverage grant by either expanding coverage or restricting it further by adding additional exclusions or modifying the policy language in a way that constricts its scope.

You may or may not have a specific exclusion that applies. Additionally, there may be language indicating that the insurer had the right to rescind or revoke the policy if the statements upon which it relied when issuing coverage (like the fact that your buddy had a license) were false. My guess is that is what the insurer will argue here -- a general escape hatch as opposed to a specific exclusion.

I deal with large commercial coverage claims for a living. Your buddy should find a local coverage specialist ASAP and NOT have any further communications with his insurer until he has consulted with a lawyer. The law on these issues varies a great deal state by state. For example, to establish a basis for rescission here in WA state, the insurer would likely need to show an affirmative intent to deceive, meaning that it cannot rescind the policy if he was unaware of the suspension. He absolutely needs to lawyer up.

Dougr743

was he aware, really aware he had a suspension. did he request any written corespondence, as to when the suspension occurred. he can argue the suspension was not validated and his license was not suspended as long as he did not get validaiton in writing.

HHH

appreciate all the input, I took a close look on the insurance policy, there is nothing about the exclusion for not having a valid driver license. Also found this "You have the right to a notice of cancellation.
An insurance company may cancel your policy before its expiration date under very limited circumstances, such as when fraud is discovered; when your driver's license is suspended or revoked; or, when you fail to make premium payments after a certain period of time. The company must give you at least 20 days written notice before cancelling your policy. The notice must specify the reason for the cancellation" from https://www.mass.gov/service-details...bile-insurance

Insurance company could cancel policy due to a suspended license but have to send a notice in advance, in this case the insurance is still valid.

seatactony

While related in this context, a statutorily imposed time period on cancellation doesn't necessarily mean the claim remains covered. Your guy likely filled out a policy app in which he provided his license number, indicated that he had a valid license, and that doc likely stated that it was a material statement of fact upon which the insurer was relying in granting coverage.

If they are denying coverage, he has a right to a written explanation of the basis for that denial. He should sit tight until he gets that doc. You don't want to point out problems with their coverage position until they have put that coverage position in writing, as they will just respond by coming up with something better and they are typically held to the initial reason stated for the denial.

Again, I would really recommend that you find someone local who is well versed in these issues. A letter from an attorney will go a long way and this is (with all due respect) something that a non-attorney can screw up pretty easily. Don't be penny wise pound foolish on a claim of this size.

ST

n2cars

GEICO number 1 for car insurance. No affiliation
https://www.cnet.com/roadshow/news/1...united-states/

ipse dixit

I think your "friend" should find an attorney instead of seeking guidance from the Rennlist Peanut Gallery.

Good luck to your "friend"