If you’ve ever been injured in a car wreck in southern Indiana or across the river in Kentucky, you know the fear that comes next: Will my insurance company actually pay what they owe?
The Cosme family from northwest Indiana found out the hard way. In a recent decision from the Indiana Court of Appeals (Case No. 25A-CT-1439, decided May 14, 2026), Erie Insurance Exchange got held accountable for exactly the kind of games insurance companies sometimes play. And the result was a massive victory for policyholders.
What Happened to the Cosmes?
Christine and Roy Cosme had a perfectly valid Erie auto policy. Their son Broyce had an old, mistaken license suspension from a traffic stop where he wasn’t even the driver. Erie discovered the suspension during a routine record pull and sent a letter demanding they exclude Broyce or the policy would be canceled.
The family scrambled to fix the error. They communicated with Erie’s agent, paid to reinstate the license, and sent proof. But Erie canceled the policy anyway—literally the day before the accident.
Then disaster struck.
An uninsured driver, Debora Warfield Clark, slammed into the back of the Cosmes’ car in Hammond. Christine suffered ongoing neck pain. Roy had vision problems. The car was damaged.
Erie denied the uninsured motorist claim, claiming the policy had been canceled. The Cosmes sued for breach of contract and bad faith.
A Lake County jury saw what was really going on. They awarded the family $8,125,407.61—including punitive damages for Erie’s bad faith. The trial court reduced it some, but the Court of Appeals largely backed the Cosmes, affirming that Erie could be held liable for bad faith and that the jury heard proper evidence (including the expert who called Erie’s conduct “opportunistic fraud”).
Why This Case Matters to You in Southern Indiana or Kentucky
Insurance companies love technicalities. A paperwork mix-up, a disputed license issue, or a last-minute cancellation notice can be used to deny a legitimate claim after you’ve paid premiums for years.
This decision sends a clear message:
- You can’t just cancel coverage at the 11th hour and leave your insureds high and dry.
- “Opportunistic” denials can lead to real consequences—big jury verdicts and punitive damages.
- Indiana courts will hold insurers to the duty of good faith and fair dealing.
Folks in New Albany, Jeffersonville, Clarksville, Corydon, or anywhere in the Kentuckiana region deal with the same big insurance carriers that operate across state lines. Whether you’re on I-65, I-64, or any of our local roads, you deserve an insurer that pays what it promises.
This Is Why You Need a Fighter in Your Corner
At my firm, we’ve built our practice on taking on the insurance companies that try to deny, delay, or low-ball legitimate claims—especially car accident and uninsured/underinsured motorist cases just like this one.
I fight for injured people throughout southern Indiana and Kentucky because I’ve seen too many families get run over by the very companies they trusted. Whether it’s a rear-end collision, a bad-faith denial, or a disputed policy cancellation, we dig in, gather the evidence, and take it all the way to trial and appeal when necessary.
The Cosme case shows what’s possible when you refuse to accept “no” for an answer.
Don’t Let Your Insurance Company Play Games With Your Future
If you or a loved one has been injured in a car accident and your insurance claim has been denied, delayed, or undervalued—especially if it involves an uninsured driver, policy cancellation issues, or bad-faith handling—don’t go it alone.
Contact Marc Sedwick today for a free, no-obligation consultation.
We serve clients throughout southern Indiana (New Albany, Jeffersonville, Clarksville, Floyd County, Harrison County, and beyond) and Kentucky.
Call 877-890-5090 or visit marcsedwick.com to schedule your appointment.
You pay us only if we win.
Because when insurance companies refuse to do the right thing, we make them pay.
Marc Sedwick is a personal injury and trial attorney based in New Albany, Indiana, representing clients in Indiana and Kentucky.