Uninsured Motorists Coverage and Denial of Liability

Our insured was recently involved in an accident, where the other driver was cited for running a stop sign. Our insured was not cited. Unfortunately, the other party's insurer has declined to pay for the damage to our insured's car, stating that they believe their insured had no liability for the accident. Also, our insured has no collision coverage.

We then submitted the claim to our insured's carrier for payment under Property Damage Uninsured Motorists Coverage – Ohio . That endorsement agrees to pay for damage to the insured's auto done by an uninsured driver. Part of the definition of "uninsured motor vehicle" includes a situation where the at-fault party is insured, but the insurer "denies coverage or becomes insolvent."

Our insured's carrier has refused to pay under the UMPD. They contend that the other insurer did not deny coverage—it only denied liability. Now it appears that our insured must sue the other party in order to collect.

May we have your take on this matter?

Ohio Subscriber

It seems that the insurer is taking a hard line in denying liability of a driver who was cited. But your insured's carrier is correct. The other driver does not meet the definition of "uninsured." His company did not deny coverage—only liability. Unfortunately for your insured, it may be a matter for a court to decide.