What if I am sued for a claim under a previous insurance company?

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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: Sep 14, 2016

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Insurance Question from Cottleville, MO

Asked on 09/14/2016

What if I am sued for a claim under a previous insurance company? I am insured by X with a minor accident claim still open [other driver with soft tissue pain - :/) ]. I want to change to insurance company Y. I know that I can change while to claim is open but my concern is how insurance company X will follow through on the claim? Also, what if I change to insurance company Y an 4 years from now, with statute of limitation about to expire, I am served with a lawsuit for this accident. Will insurance company X handle the suit? Will they handle it well? I am really dissatisfied with insurance company X but I feel trapped.

Answer given on September 28, 2016

If you have an open claim involving bodily injury to another party, the new insurance company may decline to offer a new policy until the claim is settled. This is due to the fact that they would have no knowledge of the total claim and the settlement could affect the cost of insurance with the new policy. Discuss the claim with the new insurance company to be sure they are willing to write a new policy for you with the open claim.Your current insurance company will hold the claim open until the settlement is made with the other party, even if you have cancelled your policy with them. How it is handled should not change whether or not you have your insurance with them or not. The insurance company is in charge of the settlement and it should not involve you once they are involved in the claim.

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