Insurance Dispute Lawyer Blog
Car insurance policies can be riddled with complex terms and conditions, often leading to misunderstandings between policyholders and insurers. The case of Mandi and Abigail Ardda v. Danielle T. Peters, et al. brings this issue to the forefront, highlighting the challenges of navigating insurance exclusions and the importance of clear communication.
The Accident and the Insurance Claim:
Abigail Ardda was involved in a car accident while driving a car she co-owned with her husband, Mandi. They filed a claim with their insurer, GoAuto Insurance Company, but were shocked to discover Abigail was listed as an excluded driver, despite their belief that she was covered.
The Dispute:
The Arddas claimed they had explicitly instructed the GoAuto agent to include Abigail on the policy and had even paid an additional premium for her coverage. They argued that the exclusion was a result of a mistake by the GoAuto employee and sought to have the policy reformed to reflect their original intent.
The Court’s Decision:
The trial court initially ruled in favor of GoAuto, stating that the exclusion was clear and unambiguous. However, the Court of Appeal reversed this decision, stating that there were genuine issues of material fact regarding whether a mutual error had occurred. The case was remanded for further proceedings to determine the true intent of the parties.
Key Takeaways:
This case underscores the following important points:
- Read your policy carefully: It’s crucial to review your insurance policy thoroughly and understand its terms, including any exclusions. Don’t hesitate to ask your agent for clarification if anything is unclear.
- Document your interactions with your insurer: Keep records of all conversations, emails, and other communications with your insurance agent or company. This can be valuable evidence if a dispute arises later.
- Don’t rely solely on verbal agreements: While verbal assurances from your agent are important, make sure they are reflected in your written policy. If there’s a discrepancy, address it immediately.
- Seek legal help if necessary: If you believe your insurer has made an error or is acting in bad faith, consult with an attorney who specializes in insurance law.
The Ardda’s case serves as a reminder that insurance policies are contracts and should accurately reflect the agreement between the insured and the insurer. When misunderstandings arise, it’s important to seek resolution and, if necessary, legal recourse to protect your rights. Remember, the fine print matters, but so does your intent.
Written by Berniard Law Firm
Additional Berniard Law Firm Blog Articles on Car Insurance Contracts: What happens if you are involved in a car accident where your damages exceed the auto insurance policy limits of the person responsible? and Understanding Insurance Exclusions: A Case of Property Damage Coverage for Borrowed Cars