Can my company deny paying for a no fault accident if i have full coverage

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Oct 17, 2011

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Insurance Question from Belleville, IL

Asked on 10/17/2011

Can my company deny paying for a no fault accident if i have full coverage I was in a minor parking lot fender bender with both cars in motion, police report shows no one at fault and my car got a scratch only. I have full coverage but my insurance denied the claim because I was on the clock at my job. The other persons insurance decided I was at fault and sending me a bill over $1,000 saying that they are treating me as uninsured since my insurance denied the claim. My insurance was paid up but I was told that i needed business insurance since I was using my personal car while on the clock and that personal insurance does not apply even with full coverages

Answer given on October 20, 2011

I think that your insurance company as denied this claim in error.  The fact that you were going to an appoint for your employer should not change the fact of coverage. You did not state what type of occupation you have or what type of business your employer is in, however, there are plenty of individuals that use their vehicle in the course of their employment.  There is usually a question on your auto application that ask if you will use your vehicle in the course of business.  How did you answer that question?  A major question in this scenario is how many miles a year do you drive for business purpose? Only 1,000 or 20,000! Do you do any delivery of any kind on a daily basis?  Do you participate in any transport of people–cab driver, limo service or transfers with your personal car?  If you can answer “no” to any of these questions, then I think you can argue the point that you have coverage.  File a complaint for wrongful denial of your claim with the Department of Insurance for the State of Illinois.  Also, talk to an attorney about your denial and get advice on how to proceed–that is whether you can answer “no” or “yes” to the above questions.  You can use freeadvice.com attorney referral link to find an attorney in your area that will help you with this coverage issue.  Click here for help!   


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