A couple who has car insurance through Farmers’ Insurance got into a single-car accident. They filed a claim to their insurance company. The insurer denied their claim, so, the couple decided to sue Farmers’ Insurance. Unfortunately for the couple, the court sided with the insurance company.
In 2009, Michael and Brenda Osborne were driving their Subaru in Skagit County, Washington. They went off the road, in what is, essentially, a single-car accident. The couple told the county sheriff, (who arrived on the scene), that the accident was caused when another car, that was driving the opposite direction from the Osborne’s, forced the couple to drive off the road. They said that the other car never stopped.
The Osborne’s sustained some injuries in this accident. They had auto insurance through Farmers’ Insurance, and so, they filed an uninsured motorist claim. This is where things get complex.
Car insurance almost works “backwards”, when you think about it. You pay for a car insurance policy. If you cause an accident, then your car insurance will cover the cost of repairs to the other person’s vehicle.
If people in the other car were injured in the accident that you caused, then your auto insurance policy will pay for the medical bills that come from the treatment that the people needed.
In other words, your car insurance policy won’t pay for repairs to your car, or for your medical bills, if you caused the accident. Now, if the other driver caused the accident, then that person’s auto insurance will cover your repair bills and medical bills. You pay to cover the other guy, and the other guy pays to cover you.
What happens if the other driver doesn’t have any auto insurance at all? Sometimes, your own auto insurance will cover some of the expenses. In order for that to happen, though, you actually have to get the other driver’s information.
In this particular incident, the Osbourne’s didn’t have any information about the driver that forced them off the road, and into a single-car accident. They also didn’t have a witness who saw the accident happen (other than themselves, which doesn’t count). These were some of the reasons why Farmers’ Insurance denied the Osbourne’s uninsured motorist claim.
The Osbourne’s then sued Farmers’ Insurance for “breach of conflict”. They lost the case, and filed for an appeal. The Court of Appeals Division One, of Washington, decided that there wasn’t any “reasonable evidence” of a second car. It also decided not to consider statements made by the Osbourne’s at the scene. Therefore, the court ruled that Farmers’ Insurance doesn’t have to pay for the Osbourne’s uninsured motorist claim after all.
Image by Gordon Joly on Flickr