If the at-fault driver only carries limited insurance or none at all, a claim should still be submitted with their own company; however, many organizations exploit policyholders by employing various strategies to deny or reduce any compensation awarded.
If an insurance provider acted in bad faith by denying or underpaying valid claims, those injured by this action could seek legal recourse. It’s important to keep several factors in mind before making this decision.
Damages
Suing your car insurance company could be necessary if they mishandle your injury claim and do not provide the appropriate payout or address the issue satisfactorily. Furthermore, an insurer might violate their legal obligations by refusing coverage or benefits that should be available to them – another reason to file suit could include noncompliance with laws regarding coverage and benefits owed to you as an insured party.
Your auto insurance provider has an obligation to resolve your claim in good faith and pay out damages, up to the limits of your policy. Unfortunately, many insurers fail to abide by this promise, opting instead to make things as difficult as possible for claimants or deny their claims altogether – potentially leading to major financial losses as bills and medical bills pile up without being paid on time.
An unfortunate reality of life can be having your insurance company refuse to cover injuries and damages because they believe you caused the accident yourself, or their policies don’t cover them. If this occurs, filing a breach-of-contract lawsuit against them might be your only recourse.
Your own car insurance provider could also come under scrutiny should they file an uninsured motorist claim against you or someone you love. Florida law mandates all drivers carry personal injury protection (PIP) insurance to cover medical costs and damages from an uninsured driver involved in an accident.
If your auto insurer denied your claim despite you filing all the information correctly and their policy indicating they should cover it, taking legal action could be the way forward. Denials often stem from poor communication or confusion but with help from an experienced attorney you could fight back effectively against them.
You have the ability to sue your car insurance if they refuse to provide non-economic damages such as pain and suffering or emotional distress as a result of an accident. Although not guaranteed by law, these non-economic damages typically form part of the total award when full tort coverage or severity levels of accident exist.
Statute of Limitations
Insurance claims play an essential part in recovering immediate expenses after a car accident; however, they often don’t cover all damages associated with an incident, including long-term medical care, lost income, pain and suffering and more. Filing a lawsuit may be necessary to seek additional compensation; however there are strict rules around when and how one must be filed and failing to do so can mean giving up the opportunity for seeking justice for your losses.
The statute of limitations sets a time limit on filing a suit after an accident has taken place, generally two to three years depending on state laws. Once that period passes, your right to sue becomes permanently denied.
Note that this doesn’t preclude you from filing a suit against the driver who caused your accident – rather, it applies only if your lawsuit involves your own car insurance company.
Most drivers carry underinsured/underinsured motorist coverage through their auto policies that can help to cover medical expenses and property damages related to car accidents, as well as providing compensation to victims hit by uninsured or underinsured drivers.
If you are contemplating filing a suit against your own insurer, consulting with an auto accident attorney first is highly advised. Not only can an attorney ensure your claim is timely filed but they may also offer insight as to its value and whether legal action should be pursued.
For instance, if your insurer fails to honor their contract by covering your claim after an accident and they refuse, you could sue them for breach of contract. By purchasing their policy you agreed that any damages up to its limit would be covered by them.
If you are a minor, the statute of limitations will remain suspended until such time as you become legally adult – either when marrying or reaching 18 (whichever comes first).
Bad Faith Practices
Insurance companies owe customers the duty of conducting their business fairly and paying claims in good faith, when doing so would benefit both themselves and their customers. When this obligation is violated it is considered bad faith and the claimant can pursue legal action for damages which typically include economic and non-economic elements such as medical bills, lost income, property damage, pain and suffering as well as emotional distress. Punitive damages may also be awarded against an offending insurer to send the message that such conduct will no longer be tolerated.
Denying coverage can be used by insurance companies to avoid paying claims, but such decisions must be based on an objective evaluation of evidence supporting them. They must conduct a full investigation and give adequate reasons for their denials; other bad faith practices include disregarding evidence, using vague policy language as grounds for denial, refusing interview requests from witnesses or failing to review medical records/other relevant data, or asking an insured party to contribute towards their settlement costs.
Many states have laws which provide remedies to those wronged by an insurance company’s actions. These common law rules give plaintiffs a legal avenue for filing bad faith suits against insurers; additionally, most states also have statutes providing additional grounds for filing such complaints.
If your auto insurance fails to live up to its obligations, immediately seek legal advice from an experienced attorney. As the statute of limitations for bad faith claims varies by state, acting quickly is crucial. A bad faith claim may be filed up to three years post injury; however, in reality this timeframe may be much shorter; your attorney can assess your case, determine if there is valid claim and help secure appropriate compensation on your behalf – finding an experienced advocate could make all the difference!
Attorney’s Fees
Your car insurance may cover some or all of the costs of a personal injury lawsuit, depending on its policy language and state laws. Most often, however, suing an insurer is only necessary when they deny your claim or fail to compensate damages accordingly – in such instances you should hire an attorney as they will need help representing themselves in court proceedings against their own insurers.
As part of your legal proceedings, you will incur many expenses, such as attorneys’ fees, court costs and expert witness fees. Furthermore, travel costs to and from courthouse may also need to be covered; to make sure that these costs can be covered during a successful lawsuit against an insurance company can take many years.
When filing a lawsuit against your own insurance provider, attorney’s fees could potentially be awarded from any verdict or settlement that goes in your favor. This is often done under the theory that an insurer owes its insureds their best interests and should do everything within its power to safeguard those interests.
However, awarding attorney’s fees based on an insurance company’s obligation to “protect its insureds’ interests” may not always be equitable. If your case doesn’t settle or is unsuccessful, it could become costly for them and they might hesitate to offer you a favourable deal in order to limit their liabilities and reduce risk.
You have the option of filing suit against your own insurance provider if they refuse to reimburse for legal expenses, typically via uninsured and underinsured motorist coverage (UM/UIM). This coverage provides compensation for losses suffered as a result of being hit by someone with insufficient or no coverage – for instance an uninsured or underinsured driver who hit you.
Before making the decision to sue your car insurance, you should carefully assess how they have treated you. If they have ignored, denied, or underpaid your claim then this may provide grounds to file a suit; but before doing so it is advisable to consult with a Brooklyn car accident lawyer as they will help explain your rights and options.