What to do ifa type of claim that was previously made is no longer being honored by an insurer?

I lease out a taxi to a driver. It was hit by another vehicle. Their insurance is refusing to pay for the loss of income from this vehicle. I have had this happen before, and they always have paid for the loss. Suddenly the insurer got it in their heads that they don’t have to. Does anyone know what I need to do to resolve this? Is there a legal statute that I can show them, or a former case that shows it? I’m at my wit’s end.

Asked on September 22, 2011 under Accident Law, Minnesota


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Before you go to case law or otherwise, you need to figure out if this insurance company's policy is different than the others you had. If this is the insurance policy of the cab driver, then it should be the same. File a complaint with your state's insurance department and make sure you file it as bad faith coverage or insurance fraud. If this is the fault of your driver and the insurance company refuses to pay (and it is the cab driver's insurance), still file the complaint with the insurance department. If this is the other driver's fault and that other driver's insurance won't pay, and it was the same insurance company, show your claims from the previous events by informing them they paid out on x y and z and if they refuse to pay on this claim, you will report them to both the insurance department in your state and the state attorney general.

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