VALENCIA COUNTY, N.M. – Some say she had a premonition, others say it was just a coincidence. Whatever it was, a New Mexico woman changed her insurance policy just five days before she died in a car accident.
Her family should have been paid, but her lawyers say what happened next was nothing short of a cover-up.
State Farm will pay the second-largest civil “bad faith” award in New Mexico history, according to an attorney representing the family of Andrea Lovato.
A jury ruled that the crash was indeed an accident, but the steps State Farm took after Lovato’s death will now cost them tens of millions of dollars.
In Valencia County in 2017, the last thing Andrea Lovato saw was a minivan trying to pass a car going more than 70 miles per hour on a 35. Lovato swerved into the oncoming lane and was killed. Her 4-year-old nephew in the back seat survived.
“Andrea was faced with an impossible choice,” said Shane Maier.
Shane Maier is representing Lovato’s family. They will be paid after a jury found her car insurance company, State Farm, acted in bad faith.
“And so they did all this to cover it up, and when they finally, you know, caught on and said, ‘Hey – you know, what is this? Oh, it was a clerical error, you’re 100% to blame’. They even cancelled her as an insured,” Maier said.
Lovato had upgraded her car insurance to $1 million five days before the crash.
“They saw an opportunity – an opportunity that the only person who knew she had a million dollars was dead, and they could change the policy to save themselves millions on this claim,” Maier said.
However, Maier says an automated letter was sent out when she increased her policy and her family found it.
“Massive cover-up! Again, they had the family come in without them knowing and say, ‘Hey, we just want to make sure this policy is right. Right? This is after your daughter is dead. We’re going to help you save some money,'” Maier said.
Maier says after the insurance company got caught, they went after Lovato’s character.
“And then they just did everything they could to drag this dead lady’s name through the mud. They said how horrible she was, they said she tried to commit suicide, that’s why this accident happened. Just crazy stuff,” Maier said.
The $36 million will go to the little boy who survived the crash – Lovato’s mother and brother.
“This is probably the most outrageous behaviour I’ve ever seen from an insurance company,” Maier said.
The local attorney representing State Farm released a statement saying State Farm “strongly believes that we upheld and honoured our commitment to our customers and sympathise with the family who suffered a great personal loss. We are disappointed in the jury’s decision, respectfully disagree with it and will explore all available legal options, including appealing the verdict”.
