Insurance companies may not properly respond to a claim


Insurance companies might not respond to claims in certain cases. They might delay making payments or efficiently resolving the matter. Sometimes they have legitimate reasons, sometimes not.

It is crucial to fully understand how claims are handled in your area. Although many states have an at-fault system that requires that the insurance company that provided insurance to a person responsible for the accident pay for damages, it is not always true.

States with no-fault

No-fault insurance is available in Florida, Hawaii and Kansas. This type of coverage allows you to have your own insurance company pay for your medical bills and lost wages in the event of a car accident.

The law is applied in different ways by these states. Some states have caps on how much insurance companies will pay. These states generally prohibit people from filing a claim to pain and suffering unless they have suffered serious injuries or medical damages.

You should contact your insurance company if you reside in these states regarding medical expenses or lost wages. Property damage claims are the responsibility of the insurance company that covers the primary at-fault party. In no-fault states the law generally requires that you cooperate with your insurance company. This includes providing a recorded statement and being examined by a doctor to determine the extent of your injuries.

Claims at-Fault

In 38 other states, the at-fault principle of negligence applies. You should have filed a claim against the company if you believe that the other party was responsible for your accident. If the claims adjuster finds that the driver of the other party was responsible for the accident, they will offer you a settlement. You can usually collect damages from your insurance company if you are less than 50% responsible for the accident. This depends on the state law. The insurance company can reduce the amount of damages you receive by reducing the percentage of fault that you have for the accident.

Insurance companies must handle both property damage and bodily injury claims independently. They cannot deny you a settlement for your bodily injury claim if you haven’t reached an agreement regarding the property damage claim.

Response Times

There are many requirements in each state regarding how long it takes for insurance companies to respond to a claim. These rules might be different if you file a claim under your own insurance than if you file one under the policy of another party. You may be required to provide a written explanation by the insurance company for delays.

Rents

The state law also governs the handling of rental vehicles. Some states require that the driver at fault pay the insurance company of the other driver for rental vehicle costs. Your policy might not cover rental vehicles.

Bad faith

You may file a bad faith lawsuit against your insurance company if your claim is not being resolved by your insurer or if your state law doesn’t allow for it to. Your jurisdiction’s laws may outline the legal framework for such claims. This includes acts by the insurance company that show that it is acting in bad faith. You may be eligible for additional compensation if the insurance company is found guilty of bad faith.

An experienced personal injury lawyer can help you understand the laws in your state and recommend legal action if necessary. In order to expedite the claims process, he or she might be able communicate with the insurance company.


Updated 01/18/22