A car insurance company lawsuit may result from a dispute over insurance claims, in addition to other issues, including, but not limited to:
- Disputes about insurance rates and fees: An insurance company may want an individual to pay more for coverage than they think they should be required to pay.
- Non-payment of premiums: If an individual does not pay their premiums when they are due, their insurance can be canceled and then their coverage ends. An individual will want to make sure they pay when payment is due and know the status of their coverage.
- Cancellation or non-renewal of a policy: Car insurance may be canceled or not renewed for a variety of reasons, often outlined in state laws.
- The most common reason for cancellation is non-payment of premiums when they are due.
- Denial of a claim: A car insurance company may deny an insured individual’s claim for payment for damage to their care or personal injury suffered in an accident.
One common basis for lawsuits based on the wrongful denial of claims is insurance bad faith. A policyholder has the right to expect that their car insurance company will promptly pay a legitimate claim for a loss that is covered by their policy.
If the insurance does not uphold their end of the agreement when necessary, an individual should consult with a personal injury lawyer. Additionally, lawsuits against car insurance companies are often pursued as class action lawsuits.
These types of claims may result from broader issues, for example, company-wide fraud that involves a large number of consumers or unfair business practices.
What Is Car Insurance Fraud?
It is a possibility that an insurance company commits fraud. Clearly, fraud that is perpetrated by a car insurance company may create costly issues for an individual who is insured by that company.
Methods a car insurance company may use to commit fraud include, but are not limited to:
- Misrepresentation of car values and car prices
- Use of fraudulent or fake insurance documents
- Misleading advertising or marketing practices
- Using duress or coercion to force an individual to sign an insurance policy
- Engaging in insurance activity without a license, or presenting oneself to the public as a licensed insurance broker when in fact the individual does not have a license
- Misrepresenting policy provisions so that when a person makes a claim, they find they do not have the insurance coverage they thought they did
What Are the Steps to Suing Your Car Insurance Company?
When an individual pays for auto insurance, it entitles the insurance holder to certain benefits. If an individual’s insurance company refuses to provide the benefits that the individual pays for, they have an opportunity to appeal the refusal of those benefits.
If an individual exhausts their appeals through the company, they may be able to file a car insurance company lawsuit through their local court. In order to bring this type of lawsuit, however, an individual will need to have certain evidence, discussed below, to give their claim the best chance possible to succeed.
Claim Rejected
If an individual’s claim or request is denied by an insurance provider, the policy holder will receive a letter notifying them of the denial. This letter will contain the denial of the claim or request as well as a reason for the denial.
Some letters may also contain details regarding the reason for the denial. There are several reasons a claim may be rejected, including, but not limited to:
- The driver or vehicle that was involved was not covered by the car insurance plan;
- The policy holder was at fault for the accident; or
- The claim resulted from a pre-existing issue with the vehicle.
An individual may also receive a letter regarding a cancellation of auto insurance policy. Auto policy cancellations may occur in certain situations, such as:
- The policyholder failed to pay premiums as required;
- The policyholder engaged in substantial fraud or deception;
- License suspension or revocation for a policyholder; or
- The policyholder deliberately caused a car accident.
If a policy holder receives this type of a letter and disagrees with the denial or cancellation, they should start gathering the necessary evidence to support a lawsuit. This includes any documentation related to their policy as well as any correspondence with the insurance company.
Paperwork
In order for an individual, as a policy holder, to bring a case against their insurance provider, they will need a copy of their auto insurance coverage policy in the form that it was at the time their claim was filed. Everything in a case involving an insurance company is based on the policy entered into between the policyholder and the insurance company.
In addition, the policyholder will need all copies of correspondence between themselves and the insurance company, which may include:
- Forms;
- Letters; and
- Any other mailings sent to or received from the insurance company.
Appeals
There are many automobile insurance companies that allow for appeals or that will reconsider a denial if a request is made. If an insurance policyholder chooses to request an appeal, they should keep copies of their requests as well as the reply received from the insurance company.
If the appeal is denied or is not satisfactorily resolved, the policyholder should have copies of all the paperwork that accompanies the denial.
Timeline
There are deadlines, called statutes of limitations, for pursuing lawsuits from the denial of car insurance claims. The length of the statute of limitations will depend on the state.
It is important to be aware that some can be very short, only a few months, and some can be longer, such as a few years. The process for these issues is not predictable and often depends on how long it takes the insurance company to respond.
If it becomes necessary for an individual to sue their car insurance company in court because their claim or appeal is denied, there are steps they should take, including:
- Contact a local attorney
- Gather all of the documentation and information they have related to their case, including correspondence and denials from their insurance company
- Your attorney will take the following steps to help an individual obtain compensation, including:
- Filing a summons and complaint in court, to which the insurance company will have a specific amount of time to respond
- Conducting discovery, where the lawyers for the individual and the insurance company will investigate the facts of the case and review the evidence provided by the parties.
- The parties may attempt to settle the case and if they cannot, the lawyer will prepare for trial.
- Even when a lawsuit is filed, it does not necessarily mean the case will make it to trial.
- Many cases are settled during meditation or by an offer from one party to another.
- If the case is not settled, the judge or jury will provide a decision on the case and the case will be concluded.
- In some situations, a case may be appealed and will continue to a higher court for resolution.
It is very important for a plaintiff, or individual who filed the lawsuit, to have legal representation when dealing with an insurance company. This is because the insurance company will likely be represented by their own counsel.
In addition, the company will want to pay the plaintiff the least possible amount they can. Having a lawyer will help ensure that the plaintiff receives a fair settlement, their interests are protected, and they receive the compensation they are entitled to.
What Evidence Can Be Used in a Car Insurance Lawsuit?
There are several different types of evidence that may be used in a car insurance lawsuit. This type of information will be necessary for an individual to prove their case, whether in court or in an alternative dispute resolution or negotiation meeting.
Common examples categories of evidence that is used in a car insurance lawsuit includes:
- Medical records: This includes any documentation that is related to the individual’s injuries and the medical treatment they received for those injuries.
- Loss records: This is information about all of the losses that the individual suffered as a result of their accident.
- This may include photographs, videos, or other types of documentation of the incident or scene.
- This may also include information about lost wages, medical costs, vehicle repair costs, and other expenses.
- Insurance contract or coverage documents: This includes the coverage information for the individual’s policy.
- Insurance documentation: This includes any documentation or claims filed as well as any correspondence the individual sent or received from their insurance company.
- Witness statements: These are statements from individuals who witnessed an accident or situation.
- Police report: This is a report that is created by law enforcement who were present at the accident or incident.
The more documentation an individual can provide to show the extent of their losses, the stronger their case will be. There are also other types of evidence that may be found by modern cameras, such as traffic cameras, ATM cameras, and other cameras in an area.
How Can I Protect Myself from Car Insurance Legal Issues?
In order for an individual to avoid car insurance problems, it is important that they understand the terms of their insurance policy contract prior to signing it. This may require the individual to read the policy carefully as well as ask questions regarding its provisions.
An individual should always be informed regarding what type of coverage is required in their state. An individual may consult with a professional, such as an attorney, who can help them review their policy.
It may be helpful to consult with a lawyer for help with:
- Purchasing insurance
- Negotiating with the insurance company
- Auto accident claims
- Other issues
An individual should understand how any action that is suggested by the car insurance company would affect them. For example, if the insurance company suggests that the individual’s car should be declared a total loss after their accident, the individual should check and see whether this would be the most beneficial option for them.
Where Can You Find the Right Lawyer?
If you are having an issue or dispute with your insurance company, it is very important to consult with an insurance lawyer. The paperwork and records discussed above are the primary pieces of evidence an individual needs to bring a lawsuit against their auto insurance company.
If you believe you have not received the benefits you are entitled to under your car insurance plan, your lawyer can help. Your lawyer can review your plan, determine if your car insurance company has wrongfully denied your claim, and help you file a lawsuit, if needed.
