The Indiana Court of Appeals this month rejected an argument by an auto insurer that it should not be required to cover bodily injury damages caused by its insured because a policy exclusion barred him from coverage if he drove with a suspended license. As long-time Indiana car accident attorneys in Gary, we know well the ways in which auto insurance companies will seek to deny coverage. Exclusions drafted into auto insurance policies are the basis for many insurance claim denials. However, as our injury lawyers often explain, an insurance company denial is not the last word. With the help of a dedicated personal injury attorney, auto insurance denials can often be successfully challenged.
According to court records in the recent case, the insured/at-fault driver in this matter lost control of his vehicle and slammed into the side of the residence, resulting in both bodily injury and property damage for himself as well as the occupants of the dwelling.
Although the driver’s license was suspended at the time of the crash, his vehicle was insured by a policy he obtained months earlier. However, an exclusion contained in that policy stated: “We do not provide liability coverage for any ‘insured’ using a vehicle without reasonable belief that ‘insured’ is entitled to do so. This exclusion … does not apply to a family member using your covered auto, which is owned by you.”