Dealing with Insurance Companies after a Maryland Motorcycle Accident

One of the most frustrating aspects of being involved in a Maryland motorcycle accident is dealing with insurance companies. Vehicle insurance is required in Maryland, and for a good reason. However, unfortunately, insurance companies often make the recovery process harder on accident victims by creating additional stress and anxiety.

After being involved in a Maryland motorcycle accident, accident victims often have sustained serious injuries and have missed time away from work. However, life’s expenses do not stop and, when combined with potentially astronomical medical bills, accident victims find themselves in a difficult financial position. Too often, insurance companies prey upon these vulnerabilities be denying a claim they know that the accident victim will not have time to pursue or offering an accident victim a low-ball settlement offer in hopes of making the case go away.

A recent case illustrates the lengths that insurance companies will go to in an attempt to avoid financial responsibility for an accident.

The Facts of the Case

According to the court’s opinion, the plaintiff purchased a motorcycle insurance policy from the defendant in March, 2014. On August 5, the insurance company sent the plaintiff a letter, explaining that it was canceling coverage because the plaintiff did not have a valid driver’s license. On September 6, the plaintiff was involved in a motorcycle accident caused by a motorist who did not have insurance. Thus, the plaintiff filed a claim with his own insurance company, under the uninsured motorist provision.

In October, 2014, the insurance company sent the plaintiff a letter, indicating that “information recently received enables us to continue this policy without interruption in coverage.” However, the insurance company rejected the plaintiff’s claim stemming from the September 6 accident, arguing that there was no coverage in place on that day. The plaintiff claimed that he had a valid driver’s license the whole time.

The plaintiff argued that the insurance company’s stated cancellation was invalid because it was based on a fact that was not true. The court agreed with the plaintiff, noting that insurance companies cannot arbitrarily cancel policies, and generally have an acceptable reason to do so.

The court looked to other states that had decided the issue, agreeing with the reasoning behind their analysis. One such example involved an insurance company’s mistaken belief that payment had not been received. However, in reality, the plaintiff made the payment, and the insurance company processed it, but it was not posted to the plaintiff’s account. That court held that “a cancellation by mistake is no cancellation at all.”

Here, the court agreed with the other states’ courts who had decided this issue, finding “when an insurer provides the reason for cancellation of an automobile insurance policy either with the notice of cancellation or in response to a request from the insured, the reason given must be accurate, or the notice of cancellation is ineffective.”

Have You Been Injured in a Maryland Motorcycle Accident?

If you or someone you love has recently been injured in a Maryland motorcycle accident, the dedicated Maryland personal injury lawyers at Lebowitz & Mzhen, LLC can help. At Lebowitz & Mzhen, we represent injury victims and their family members in all types of personal injury claims, including Maryland motorcycle accident and other auto accident cases involving difficult insurance companies. To learn more about how we can help you with your situation, call 410-654-3600 to schedule a free consultation today.

More Blog Posts:

Considerations in Maryland Hit-and-Run Accidents, Maryland Motorcycle Accident Lawyer Blog, published March 6, 2019.

Recovering for the Wrongful Death of a Loved One Killed in a Maryland Motorcycle Accident, Maryland Motorcycle Accident Lawyer Blog, published February 21, 2019.

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