Sometimes the insurance claim process does not work as it should. You may have been denied an insurance claim that you think should be approved. Maybe you have been forced to settle for less money than you think you owe your home insurance claim. Or maybe you get the impression that your insurance company is trying to use you. Can I sue my car insurance company?
You can sue an insurance company, but you need to be sure that you really have a case. It’s hard to win with an insurance company because they have a lot of money and strength behind them. What’s more, when they refuse to pay for a car insurance claim, they usually have a good reason.
The truth is that because so many people are ready to sue for one hat, many lawyers are picky about things they are willing to take. Despite the reputation many lawyers have as prosecution ambulances, the truth is that most lawyers don’t think they can’t win.
For this reason, if you are considering suing an insurance company, you must have solid grounds against them. What’s more, in most cases you’ll have to go through a few steps before you actually get to court.
Why can you sue an insurance company?
There are several reasons to consider suing an insurance company.
When you have any insurance, there is a legal agreement between you and the protection company. The insurance company is required to provide protection in exchange for paying premiums. In the event of damage that the insurance company does not cover, problems may arise, including a lawsuit. You can technically sue an insurance company if they don’t meet your policy.
Reasons for which an insurance company may reject a claim
The insurance company has an arsenal of reasons to give you a denial of claim, some legitimate, some not. Some of the most common causes are:
- Unprotected: they may argue that your claim is not covered by an insurance policy. Review the Policy Exclusions section to better understand what it doesn’t cover. The uncertainties in the policy are assessed in favor of the policyholder, not the insurer.
- Application errors: The insurer may claim that you have misled the original application, which invalidates the policy.
- Claim Errors: Check your policy to see what are the requirements for notifying the insurance company of a claim. Some schedules are as short as 24 hours.
- Insurance fraud: reporting false or exaggerated claims can be synonymous with insurance fraud with civil and criminal consequences.
- Rejection in bad faith: Of course, they will not give the reason, but the insurer can provide many justifications for misleading in political jargon to simply hide the fact that they do not want to pay for the claim
What is bad faith insurance?
When an insurer does not comply with its obligations, which is sometimes done to maintain profits, this is called bad faith. Ways insurers can engage in bad faith include deliberately misinterpreting the language of their policies, using delays considered unreasonable to avoid settling a claim, making arbitrary demands to show proof of law, or asking the insured to contribute to the settlement. Other examples include using offensive tactics or not conducting a comprehensive investigation.