You’re Insured, Right?
Imagine you are driving down a divided freeway late at night. A truck going the opposite direction hits a large object (a 400 pound dual wheel assembly) on the highway that flies across the median into your path. You can’t avoid the object, you hit it, and you suffer serious injuries. When you get out of the hospital with all of your bills, you discover that the object on the highway was left there after it fell from an unknown vehicle. No worries, your auto insurance policy covers you, right?
Not so fast, says the insurance company. Your policy protects you against hit and run drivers, but in your case, the driver ran, and then you were hit. So, American Family argues, you shouldn’t be covered. In Tomson v. American Family Mutual, the Milwaukee trial court agreed, and dismissed the Tomsons’ claim against American Family. The Court of Appeals reversed that decision and sent the case back for trial. The results of that trial won’t be known for awhile.
I suspect that most people buy auto insurance expecting that they will be protected against perils of the road, unless they intentionally cause their own loss. Insurance companies don’t see it that way. An insurance policy is just a contract with a company that agrees to pay you something under certain very specific circumstances, if you pay the premium when due. If the company can avoid liability by claiming that you are not covered, it is likely that it will do so. More profit for them. In this case, the plaintiff was saved by a Wisconsin law, created by the legislature that requires the insurance company to protect you in minimal ways. To be safe, you should read your policy carefully. No time? Too confusing? Too much gobbledygook? Well, then you take your chances. Or, ask your lawyer, that’s what we’re for. – Dana Brooks
Consumer/Financial | BoxTop | 
October 15, 2009 12:09 am
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