Auto. Policy Statute of Limitations: Erica Klein v Farmers Insurance Co of Idaho
A recent case from the Supreme Court of Idaho addresses the proper method of calculating the statute of limitations for a cause of action under an automobile insurance policy.

The Plaintiff was involved in an accident which resulted in permanent injuries. The plaintiff later submitted a UIM demand package to the defendant. The defendant made an undisputed payment to the insured and later acknowledged that the payment did not resolve the claim. Years later, unable to agree on the value of the claim, the plaintiff filed a complaint seeking an order that the defendant participate in arbitration. The defendant filed a summary judgment motion arguing that the plaintiff’s demand for arbitration was bared by the statute of limitations.

The Court analyzed three methods for determining the accrual date of the cause of action under the statute of limitations: the date of the accident, the date of the settlement/judgment, and the date of the breach of contract. The court joined the majority of states holding the date of breach as being the date that the limitations period begins to run. Because the insurance contract was not breached until the insurer refused to go to arbitration as required by the policy, the statute of limitations on her claim had not expired.