Getting involved in a motor vehicle accident can be a traumatic experience, especially if you sustain injuries. In such instances, you rely on your auto insurance company to cover the expenses associated with medical treatment, rehabilitation, and lost wages. Unfortunately, insurance providers do not always honor their end of the bargain. In some cases, you may have to sue your own insurer for failing to pay your injury claim. Here, we will discuss the circumstances that can warrant a lawsuit against your own insurance company.
- Denial of Your Claim: Insurance companies may reject your motor vehicle injury claim due to various reasons. For instance, they might argue that the accident wasn’t your fault, or you did not file the claim in time. Alternatively, they may assert that you did not provide sufficient documentation to prove your medical expenses or your lost income. If your insurer denies your claim, you have the right to challenge the decision.
- Reduction of Benefits: Your insurance provider may offer you a lower amount of compensation than what you’re entitled to after a motor vehicle accident. This can also happen if you opt for a cheaper policy. In such cases, a personal injury lawyer can help you assess the actual value of your claim and fight for your rightful compensation, even if it means suing your own insurance company.
- Policy Exclusions: Some auto insurance policies exclude coverage for specific damages or situations. For example, your policy might exclude coverage for accidents caused while driving under the influence of drugs or alcohol. Alternatively, it may have a “no-fault” clause, which means that you cannot sue your own insurance company or the other driver for non-economic losses, such as pain and suffering. A lawyer can help you interpret the fine print of your policy and determine if your insurance company acted in bad faith.
- Bad Faith Practices: Insurance companies have a legal obligation to deal with policyholders regarding their claims in good faith. This means that they must investigate the claim promptly, pay the claim fairly, and not engage in any practices that could harm their customers. If your insurer unreasonably delayed or denied your benefits, ignored your correspondence, or gave you false information about your policy, they may have acted in bad faith. In such cases, you can file a lawsuit against them.
- Uninsured/Underinsured Motorist Coverage: If you suffered a motor vehicle accident caused by an uninsured or underinsured driver, you might have to file a claim against your own insurance company under the uninsured motorist coverage provision. This can happen if the other driver leaves the scene of the accident, doesn’t have any insurance, or his/her policy limits are not enough to cover your damages. Your insurance provider may try to minimize your compensation, in which case you would have legal recourse.
While you may assume that suing your own insurance company for non-payment of a motor vehicle accident injury claim is rare, it could happen. You need to understand your policy coverage and consult with a qualified personal injury attorney to examine the merits of your case. Note that insurance companies mainly exist to make profits, which can include underpricing policies or unfairly denying valid claims. By taking legal action, you not only get rightful access to your benefits but also discourage bad conduct and promote fair treatment of policyholders.