According to the Insurance Information Institute, car accident collision claims are the most frequent type of claim brought to insurance companies, with insurers paying for about 50 percent of all claims. While the idea of insurance companies covering almost half of all motor vehicle crashes sounds encouraging, there are times when they refuse to pay anything at all.
It is important to remember that insurance companies are businesses whose primary goal is to make a profit. They are not charities, and they are not in the business of giving away money. Insurance companies will often use various tactics to minimize the amount of money they have to pay out on claims. Some common tactics include:
- Denying claims outright.
- Delaying payments.
- Offering low settlements.
- Denying coverage for certain types of damage.
As a result, it is important to be aware of these tactics and understand your rights as an insured person.
Insurance Bad Faith
Insurance bad faith is a term used to describe the conduct of an insurance company that fails to fairly and reasonably deal with policyholders. This can include denying valid claims, delaying payments, or failing to investigate claims in a prompt and thorough manner. In some cases, insurance bad faith can also involve refusing to defend policyholders sued by third parties. Insurance bad faith is behavior that falls below the standards set by state law, and it can result in damages being awarded to the policyholder.
Insurance companies may try to deny your claim, even if you have a valid case. Reasons in which an insurance company may give for a claim denial include:
- You Were At Fault - An insurance company may claim that you were at fault for the accident, even if there is evidence to the contrary.
- Damages are Exaggerated - They may try to minimize the extent of your injuries or damage to your vehicle.
- Denial Through Ignoring - An insurer may delay processing your claim or fail to respond to your inquiries in a timely manner.
If an insurance company denies a claim, the driver should gather as much evidence as possible to support their case. First, the driver should review the policy to see if there are any coverage limits or exclusions that may have been overlooked. Next, the driver should gather any documentation related to the accident, including police reports, witness statements, and medical records. If there is video footage of the accident, this can also be helpful. With all of this supporting material, a car accident and insurance bad faith attorney will be able to help build a formidable case.
Tallahassee Car Accident Attorney
For over 25 years, Shapiro Law Firm, P.A. has been helping those who are being taken advantage of by insurance companies. We know the tactics the insurance companies use to deny, delay and underpay claims. Let us put our experience to work for you so you can focus on what is important - your recovery.
For a free initial consultation, call us today at (850) 629-7226 or visit us online!