Expert: Claims Guy - 9/11/2008

Question
- I was involved in an accident 3 years ago. I borrowed a
utility trailer from a neighbor. Although the tail gate on
the trailer was secured properly when I checked it prior to
departing, it came off of the trailer when I hit a large
pot hole (road hazard) on the freeway. The tailgate hit the
road once and then slid off the road and came to rest
against the center divider. A 19 y/o girl was following
very close, lost control of her car when she saw the
tailgate detach and she rolled her car. She was insured by
Progressive. Much to my dismay, a week after the accident I
learned that GEICO had canceled me a few days prior to the
accident. I received a ticket for "failure to secure my
load", but the judge threw it out because I had taken
reasonable precaution and I had hit a road hazard. Today (3
years later) I was notified that I was being sued by
Progressive for $27k. Question: Am I automatically liable
because I was uninsured at the moment that the accident
happened? Will the fact that the state dismissed all
citations against me help at all in the civil case against
me?

Answer
Hi Joe,

(1)You are not automatically liable because you were uninsured.  These are two separate issues and your liability depends on negligence with regard to securing the load and hitting the pot hole.

(2) The traffic court result does work to your favor.  You were found not guilty by a court.  This does not guarantee you win the civil case, though because the standard of proof is different.  In the traffic case, the state had to prove you were guilty beyond a reasonable doubt.  In the civil case, Progressive has to prove you were negligent by a preponderance of evidence.  This basically means more likely than not.

You definitely should hire a lawyer immediately.  If you had any home or auto insurance policy in force at the time of the accident, call them to see if there is any way they will cover this.  Also, check into whether GEICO followed all state requirements when they cancelled your policy.  In all states, they have to give you proper notice of cancellation.  A few days is not sufficient.  Check with the state insurance department regarding the notice requirements.