The At-Fault Driver's Insurer Denied Coverage: Your Options in Pennsylvania

Attorney Answer

A coverage denial ends the other driver's insurance, not your claim. You still have a claim against the driver, and against the owner if that is someone else. And Pennsylvania law treats a car whose insurer denies coverage as an uninsured vehicle. That matters if you were hurt and carry uninsured motorist coverage. For the car itself, your own collision coverage, if you have it, is usually the fastest route.

A denied car counts as uninsured. 75 Pa.C.S. § 1702 defines the term:

"Uninsured motor vehicle." Any of the following: (1) A motor vehicle for which there is no liability insurance or self-insurance applicable at the time of the accident. (2) A motor vehicle for which the insurance company denies coverage or the insurance company is or becomes involved in insolvency proceedings in any jurisdiction. (3) An unidentified motor vehicle that causes an accident resulting in injury provided the accident is reported to the police or proper governmental authority and the claimant notifies his insurer within 30 days, or as soon as practicable thereafter, that the claimant or his legal representative has a legal action arising out of the accident.

Paragraph (2) is the one that applies when the insurer denies coverage.

But uninsured motorist coverage is for injuries. 75 Pa.C.S. § 1731(b):

Uninsured motorist coverage shall provide protection for persons who suffer injury arising out of the maintenance or use of a motor vehicle and are legally entitled to recover damages therefor from owners or operators of uninsured motor vehicles.

So if you were injured, and you bought uninsured motorist coverage, notify your insurer of a UM claim. It does not pay to fix the car.

For the car. There are three routes, and they can be combined:

Your own collision coverage, if you have it, pays minus your deductible. Your insurer then pursues the driver. - A claim against the driver directly. A magisterial district judge hears claims up to $12,000 under 42 Pa.C.S. § 1515(a)(3). - The license lever. Under 75 Pa.C.S. § 1772(a), PennDOT suspends the license of a person against whom a crash judgment is entered, until it is dealt with.

Ask why coverage was denied. An excluded driver, a lapsed policy and a late report each point to different next steps. Ask the insurer to put its denial and its reason in writing.

What you can do

1. Ask the other driver's insurer for the denial, and its reason, in writing.

2. Check your own policy for collision and uninsured motorist coverage, and notify your insurer.

3. Get the police report, which identifies the driver and the owner.

4. Keep repair estimates and photographs of the damage.

5. Even if you are handling this yourself, you would be best served by a brief phone consultation with a local Pennsylvania attorney before you act. Most lawyers offer a short initial call at no cost, and a few minutes on your specific facts — and on how your court actually handles this — is worth more than any general guidance, including this page.

⏱ Time limits apply. A claim for the car must be filed within two years under 42 Pa.C.S. § 5524, which lists “An action for taking, detaining or injuring personal property, including actions for specific recovery thereof.” An injury claim has the same two years under § 5524(2), and an uninsured motorist claim has its own notice terms in your policy.