cool-elk-9631d ago

At-fault driver's insurance denied my claim because they 'can't locate their own customer' — legal??

I'm still kind of in shock that this is even a thing that can happen.

About six weeks ago a guy ran a red light and T-boned my cargo trailer at an intersection. He pulled over, admitted straight up it was his fault, and handed me his license and insurance card without me even asking. My buddy who was with me took a solid dozen photos of both vehicles, the skid marks, the whole scene. I even got a copy of the police report that lists him as at fault.

I filed a third-party claim with his insurer the same day. They told me they'd open an investigation and assigned me a claim number. Fine. I followed up every week. Every single time I called, the rep told me they were still "attempting to contact their insured" and to hang tight.

Then last Thursday I got a letter in the mail saying my claim is denied because they were unable to reach their policyholder and therefore couldn't confirm coverage or get his statement. That's it. No next steps, no options, just denied.

My trailer has something like four grand in damage sitting unrepaired in my driveway. I have photos, a police report, witness info — everything short of a signed confession — and this company is acting like the accident never happened.

Is an insurer actually allowed to just deny a claim because their own customer won't call them back? That feels completely backwards. The guy caused the damage, he literally handed me his insurance card, and now I'm the one stuck holding the bag?

Has anyone dealt with something like this? What did you do next?

9 replies

Most helpful first

sharp-swift-2461d ago
Yes, unfortunately they can do this and it's infuriating. The same thing happened to me two years ago — other driver's insurance kept saying they 'couldn't verify the loss' because their customer wasn't cooperating. What ended up working for me was filing through my own collision coverage and letting my insurer go after theirs. It added steps but I finally got my car fixed. Check if you have uninsured/underinsured motorist property damage on your policy too, because that can sometimes cover exactly this situation.
- mellow-sparrow-0751d ago
  This is a classic delay-and-deny tactic. Insurers know that if they make it painful enough, some people just give up. The fact that their policyholder won't call them back is their problem, not yours. Don't let that denial letter be the end of it — that's exactly what they're hoping for.
steady-sparrow-8131d ago
I used to work claims and I'll be straight with you: when an insured goes dark, companies do have some leeway to deny third-party claims because they technically can't confirm the policy was active or that the loss happened as described. It's a real loophole and it's genuinely unfair to people in your position.

That said, a denial isn't always final. If you can get your state's Department of Insurance involved and file a complaint, that paper trail alone sometimes gets the insurer moving again. They do NOT like regulatory attention. Also, the police report naming him at fault is significant — don't let them pretend it doesn't exist.
quiet-raven-3711d ago
Not legal advice, but this scenario comes up more than people realize. A third-party denial like this doesn't mean you're out of options — it can mean you pursue the at-fault driver directly in small claims or civil court, or push through your own insurer. The documentation you have (police report, photos, the fact that he voluntarily gave you his info) would be pretty useful evidence. Honestly worth a free consult with a PI attorney just to understand your leverage before you decide what to do next.
- warm-elk-1201d ago
  Quick question — did you make sure the insurance card he handed you was actually current? Sometimes people hand over old cards by mistake and the policy lapsed. Not saying that's what happened, just worth double-checking the policy dates before you go too far down one road.
quick-fox-0141d ago
A few things worth doing right now: (1) Send a formal written appeal to the insurer referencing the denial letter and your claim number — put everything in writing from here on out. (2) File a complaint with your state's Department of Insurance; it's free and easy online. (3) Check whether your state has any bad-faith insurance statutes — some states have real teeth around insurers failing to properly investigate claims. You don't need a lawyer to do steps 1 and 2.
hearty-seal-4121d ago
Skip waiting on his insurance company. File through your own policy today if you have collision coverage, get your trailer fixed, and let the two insurers sort it out through subrogation. Your insurer has way more resources to chase his insurer than you do as an individual. Yeah you might have to pay your deductible upfront, but you'll likely get it back.
plain-otter-1821d ago
Are you doing okay otherwise? Sometimes people get so focused on the property damage side of things they ignore whether the accident shook them up physically. Even low-speed impacts can cause stuff that shows up days later. Just making sure you're not dealing with more than a damaged trailer.
wise-otter-4251d ago
That letter would have absolutely ruined my week. You did everything right — stayed calm, got the info, filed promptly — and they're still treating you like the problem. I really hope one of these suggestions helps. Please update us when something breaks your way, because you deserve this resolved.