New Hampshire Supreme Court Strikes Down Geico’s Underinsured Motorist Claim Deadline

The New Hampshire Supreme Court recently ruled against a Geico provision that requires insured individuals to file underinsured motorist claims within three years of an accident, declaring it invalid. The court concluded that this contractual limitation conflicts with state law, which aims to protect insureds by allowing them a reasonable time to determine if they need underinsured motorist coverage. The ruling stems from a case where plaintiffs Shane and Maura Pelissier filed for underinsured motorist benefits after discovering the other driver’s liability coverage was insufficient to cover their damages. By then, more than three years had passed since their accident, and Geico denied the claim based on the provision’s deadline.

In its decision, the court noted that the Geico policy’s requirement could force insureds to act before knowing if the other motorist was underinsured. The court emphasized that under New Hampshire’s motor vehicle insurance statutes, the purpose of uninsured motorist coverage is to provide insured individuals the same level of protection they would have had if the other driver had adequate insurance. The court ruled that enforcing Geico’s three-year deadline, triggered by the accident date rather than the discovery of insufficient coverage, violates this public policy by potentially barring insureds from fair compensation.

Ultimately, the high court upheld the trial court’s rejection of Geico’s arguments, reinforcing that the plaintiffs were entitled to pursue their claim. This decision underscores New Hampshire’s commitment to consumer protection by ensuring that insurance policy terms align with statutory provisions intended to provide adequate protection for accident victims.