Uninsured driver crash in Washington What happened next

Dealing with uninsured drivers can be a major headache in Washington State, where insurance companies might delay acknowledging their responsibilities. Understanding the law is crucial to effectively addressing these issues. This article will explore a key court ruling, Lenzi v. Redland Insurance Company, that offers a resolution pathway. Let’s dive into how this case can guide you through similar legal challenges.

Situation

Case Overview

In Washington State, there’s a case involving Mr. Lenzi, who was in a car accident. The other driver, Mr. Davis, was found to be at fault. But here’s the twist: Mr. Davis didn’t have car insurance. Mr. Lenzi and his wife thought their own insurance, through Redland Insurance Company, would cover the accident because they had something called Uninsured Motorist (UIM) coverage. This kind of coverage is supposed to help when the other driver doesn’t have insurance. However, Redland Insurance did not agree at first and said they didn’t have to pay because they didn’t know Mr. Davis was uninsured. This disagreement led to a court case.

Plaintiff’s Claim

Mr. Lenzi and his wife, who are the plaintiffs, argued that Redland Insurance should pay for the damage caused by Mr. Davis, the uninsured driver. They said they had already told the insurance company about the lawsuit against Mr. Davis, but the company didn’t help or even respond correctly. Because of this, the Lenzis wanted Redland to pay not only for the damages but also for their lawyer fees.

Defendant’s Claim

Redland Insurance, the defendant, claimed they should not be responsible for any payments because they weren’t properly told about the lawsuit or the court’s decisions afterward. They said they didn’t get the chance to defend themselves in the case, so they shouldn’t have to pay anything.

Judgment Outcome

The court decided in favor of Mr. Lenzi and his wife. The judge said Redland Insurance was informed about the lawsuit in time and had the chance to get involved. Since they chose not to, they were responsible for the court’s decision. This meant they had to pay Mr. Lenzi $212,671 and cover the attorney fees. The case citation for this ruling is Washington 68070-1.

Resolution Methods

Immediate Actions

If you find yourself in a situation like Mr. Lenzi’s, the first thing to do is to gather all the information about the accident. This includes police reports, any photos of the accident scene, and contact information for any witnesses. Make sure to notify your insurance company immediately about the accident and the fact that the other driver is uninsured. Provide them with all the gathered information as well. This gives them no excuse to claim they didn’t know about the accident.

Filing a Lawsuit

If your insurance company refuses to cover the damages, you might need to think about filing a lawsuit. First, consult with a lawyer who specializes in insurance claims. They can help you understand your policy and what steps to take next. When filing a lawsuit, make sure you have all the evidence and documents ready to present your case clearly. Your lawyer will help you file the necessary paperwork and represent you in court. Remember, the goal is to prove that your insurance company was notified properly and should be held accountable.

Negotiation and Settlement

Sometimes, insurance companies are willing to settle out of court to avoid the hassle of a lawsuit. With a lawyer’s help, you can negotiate a settlement that covers your damages and potentially your legal fees. Be prepared to provide a strong argument and evidence showing why the insurance company should pay. It’s important to keep communication open and to remain professional throughout the negotiation process. If a settlement is reached, ensure that the agreement is documented in writing.

FAQ

What is UIM?

Uninsured Motorist (UIM) coverage is part of your car insurance policy. It helps pay for injuries and damages if you’re in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damage. This coverage is crucial because it protects you when the other driver can’t.

Do I need to notify my insurance company about every detail of the lawsuit?

Yes, it’s important to keep your insurance company informed about significant developments in the lawsuit. This includes filing the lawsuit, any court dates, and outcomes. However, if they have been properly notified and choose not to intervene, they might still be liable, as seen in the Lenzi case.

Can a default judgment bind an insurance company?

Yes, if an insurance company is notified about a lawsuit and has the chance to participate but decides not to, they can still be held to the judgment. This means they have to respect the court’s decision, even if they didn’t get involved in the case.

What if my insurance company ignores my claim?

If your insurance company ignores your claim or refuses to pay, you might need to consider legal action. It’s important to document all your communications with the insurance company and seek advice from a legal professional to understand your rights and options.

What is the Finney-Fisher Rule?

The Finney-Fisher Rule says that if an insurance company knows about a lawsuit involving its insured and has a chance to join in but doesn’t, it must accept the court’s decision. This rule is meant to stop insurance companies from ignoring lawsuits and then refusing to pay later.

Why is good faith important in insurance?

Good faith means being honest and fair in dealings. For insurance companies, it means treating customers fairly and handling claims properly. If either side doesn’t act in good faith, it can lead to disputes and legal issues, like in the Lenzi case.

What if there’s a delay in notifying the insurance company?

Delays in notification can complicate claims. However, if you have a valid reason for the delay, it might still be possible to pursue your claim. Discussing the situation with a lawyer can help determine the best course of action and whether the delay can be justified.

How can arbitration help in resolving disputes?

Arbitration is an alternative to going to court. It involves a neutral third party who listens to both sides and makes a decision. It can be faster and less formal than a court trial. However, both parties need to agree to use arbitration instead of litigation.