Why might Matthew's personal auto policy liability insurer deny coverage for the accident he caused?

The reason that Matthew's personal auto policy liability insurer might deny coverage for the accident he caused relates to the nature of the incident and the types of policies involved. Under certain circumstances, if an accident occurs while the insured is engaged in work-related activities, the employer's liability policy may provide coverage.

In this case, if Matthew was driving a vehicle that is classified under his employer’s use during the time of the accident, the personal auto policy might not apply, as personal auto policies typically do not provide coverage for accidents occurring while an individual is using the vehicle primarily for business purposes, particularly if an employer’s liability policy is in place.

Thus, if Matthew’s actions were related to work duties at the time of the accident, the employer's liability policy would take precedence, leading to a potential denial under the personal auto policy. This highlights the importance of understanding the distinctions between personal and commercial insurance coverage, particularly when the insured is operating a vehicle in a work context.