We pay for insurance on a variety of possessions such as cars, pets, houses, and even ourselves and our families not just because it’s required but because it gives us peace of mind knowing that unexpected expenses are covered in the case of an accident or emergency. But what happens if our insurance doesn’t honor what it states it would? In these cases, the law allows policyholders to take action against negligent insurance companies. Learn more about when this would apply and how you would start the process.
Can You Sue Your Insurance Company?
Insurance companies are subject to regulations in states and on a federal level. People place a level of expectation and trust in their insurance agencies and their agents; when this trust is broken, these companies can be held accountable.
When it comes to the different scenarios you can sue an insurance company for, the answer comes down to the specific circumstances of the situation.
Can You Sue Your Insurance Company for Not Paying a Claim?
In some situations, you can sue your insurance company for not paying a claim, but this is only if you or an attorney can prove that they denied your claim because they didn’t want to pay or are purposefully reducing the amount of your claim. In cases like these, it’s important to read the fine print and ensure you thoroughly understand your policy. It’s also recommended to keep track of all correspondence between you and your insurer so that they can be referenced in case an issue does occur.
There are valid reasons why an insurance company may deny your claim. A few examples include:
- Payments on premiums are made or are late.
- Coverage is not listed in the policy.
- False information was provided whether at the purchase of the policy or throughout the claims process.
- Claimant is found liable for the accident.
- Injuries or claims are found to be pre-existing.
If an insurance company denies your claim, make sure you ask for their reasoning. If you have suspicions that they are acting in bad faith, reach out to a lawyer for a consultation and to potentially have your case investigated. Learn more about what to look out for with insurance companies.
Can You Sue Your Insurance Company for Emotional Distress?
This is completely dependent on the specifics of your situation. If you find that your insurance company was acting in bad faith or negligently which then caused your suffering, you may have a case. This can be difficult to prove because insurance companies are not required to pay all of the claims you submit. However, it is their responsibility to:
- Inform policyholders of their coverage options.
- Investigate claims and follow up in a timely manner.
- Notify policyholders of changes or expiration in coverage.
- Provide explanations for a denial of a claim.
If something feels amiss, it may be worth getting in touch with an attorney to discuss your concerns.
Can you Sue Your Insurance Company for Negligence?
Negligence is defined as one party breaching the duty of care to another party resulting in damages. Insurance companies are not immune from negligence and when they wrongly deny or underpay your claim, they can be sued for acting negligently.
Negligence can be difficult to prove but here are a few examples of what it may look like:
- Failing to inform you of policy options, lying about coverage, or inadequately explaining coverage.
- Failing to provide agreed-upon coverage or performing contractual duties.
- Failing to communicate promptly with the policyholder.
- Failure to inform policyholder of changes or expiration to policy.
Steps for Suing an Insurance Company
If you’re in a position where you’re thinking about suing your insurance company, it’s important to take certain steps that can help your chances of success. These include:
- Review the terms of your policy and make sure you understand every aspect of it. Thorough knowledge of what your coverage entails puts you on better footing to challenge your insurance company for any failings they may have.
- Gather evidence that supports your case. This includes a complete copy of your policy, any communications between you and your insurance company, and, if possible, concrete timeline details of when the claim was submitted.
- Before filing a lawsuit, you can look into alternative ways of resolving the problem such as mediation or arbitration where you and your insurance company may be able to reach an agreement without potentially going to court.
- If you’re ready to go ahead with your lawsuit, reach out to a knowledgeable lawyer for help with your case. They will ensure everything is thoroughly investigated and review what you’ve gathered. This is an advocate who will go to bat for you and give you guidance that ensures you’re in the best position possible to have a successful claim.
Injured victims should speak with legal counsel after an accident because a skilled attorney can help navigate the insurance claims process and negotiate. With DM Injury Law, you can feel confident your rights are protected. Contact our team today for a free consultation.