How to Fight an Auto Insurance Claim Denial

You bought your auto insurance and diligently paid your premiums so that you could feel safe in the event of an auto accident. However, after filing your claim and ensuring that you’ve met every single requirement, you find out that your insurance provider denied your claim. So what could you do if your insurance company refuses to cover you?

What Exactly is Bad Faith Insurance Claim Denial?

As an insurance provider, your insurer is legally responsible for providing your insurance coverage. One of the key duties of providing insurance is that your provider must deal with you in good faith, so when your provider refuses to meet its responsibilities to you, your provider is acting in bad faith, explains a reputable insurance officer in Aurora. With a denial of a car insurance claim, the bad faith aspect could be the inaccurate damage valuation, investigation of your claim, or refusal to provide coverage. Bad faith insurance claims usually result in the following legal remedies:

  • Tort – This is considered a civil wrong because your insurance provider has essentially contravened its responsibility to you by denying your claim, which in turn led to economic injury.
  • Breach of Contract – Basically, because your insurer denied your insurance claim, it has broken its duty to protect you in case of an auto accident.

While both legal actions might seem very similar, tort claims come with punitive and other damage awards. Likewise, the damages and legal remedies available to you would depend on where you live.

Why Jurisdiction is Very Vital

The legal remedies and rights would be significantly dependent on your state’s approach for dealing with bad faith insurance claim denials. It’s likewise crucial to note that some states even have laws that particularly ban bad faith insurance claim denials, while other states have been known for allowing such claims under the common law. This important distinction would determine whether you could be allowed to file a bad faith claim or not.

Bearing this in mind, if your insurance claim were denied, you would probably need to work with a lawyer if you choose to appeal your claim. However, you need to determine if this move would make financial sense since hiring a lawyer isn’t exactly cheap so you need to make sure that the potential damages, effort, and money you’ll be spending is worth it.