Expert: webfoot - 5/25/2006

Question
My motocycle was totalled in AL by a Tenn. driver.  His fault.  I recieved a laceration to my arm was out of work for two weeks.  It has been 2.5 months and no response from his insurance.  I sent the insurance company my reciepts they will not sign for the certified mail so I know they got the mail.  Should I file a claim with my company as uninsured motorest?  How long can this drag out?  I am still paying interest on the bike loan.  Now the hosiptals are hounding me and my health insurance does not want to pay.  Help what should I do?

Answer
Goodness, I hate to hear that an insurance company would actually be doing something as stupid as ignoring a valid claim and refusing to sign for certified mail.  

A couple of questions and suggestions here.  What exactly to you have from the post office stating that they refused to sign?  If they refused to sign, did the P.O. return the letter to you?  Have you been able to confirm if his policy is valid and do you have anything in writing from this company?  If you actually do have clear documentation of a valid (no contested liability) claim, valid insurance coverage and the company's refusal to settle in good faith, then I would forward all of the documentation straight to the insurance commissioners in both states.  If all of this is true, then what they are doing is a big No No.  

As far as filing under your Uninsured Motorist coverage, it sounds like that may not be a bad idea.  Depending on the state (and your agent can confirm this), most UM claims do not result in any type of underwriting penalties (rate increased).  Your carrier will likely have better luck getting the claimant carrier to respond and if there turns out to be a coverage issue, your carrier will step into the shoes of the other carrier.  If they are able to verify valid coverage, then they will not be able to pay under UM, but you'll have even more documentation available for the insurance comm.  

You also may have a separate medical payments coverage through your company that could be used regardless of fault and if you have collision on the bike, you could still allow your carrier to handle everything and subrogate the claimant carrier.

Please let me know how this turns out.
Good luck!