What Do You Do If And When Your Car Insurance Claim Is Denied?

You get car insurance when you buy a car because the law says that you have to. You pay the premium to keep your insurance coverage active and so that you can get compensated if you are ever involved in an accident. Thus, what do you do if you’re involved in a car accident and the other party is at fault and your insurance company denies your claim?This is called a bad faith denial and you’ll learn how to deal with these.

What is a Bad Faith Denial?

When you get insurance for your car you assume that the insurance company will reimburse you if you’re ever involved in a car accident and sustain bodily injuries and property damage. This is called acting in good faith. Your insurance company is acting in bad faith if it refuses to pay your insurance claim.

You have two choices in this instance in terms of legal action:

● Sue for breach of contract – almost all instances of bad faith in terms of insurance claims stem from a breach of contract. Your insurance company has essentially broken its promise to indemnify you after your accident.
● Tort – your insurance company has breached civil law by refusing to pay your claim. The result has been your economic injury.

Suing for breach of contract or tort law use similar analyses of law. However, you may be able to sue for punitive damages under tort law. Be sure to check the legal actions and damages that are available in your jurisdiction.

Jurisdiction matters

Where you live strongly influences your rights in court. This is because all car insurance claims are handled by the laws of the jurisdiction where the accident occurred. This tends to be your state’s laws.

The approach that will be applied to your car insurance claim depends on the state that you live in. In some states, bad faith insurance denials are always illegal. In other states, this is permitted under common law. Where you live plays a large role in determining if and how your car insurance claim is covered in your state’s lawbooks and case laws.

Kinds of damages

The damages that you can recover also depend on where you live. You may be entitled to one or more of the following, depending on your jurisdiction:

● Compensatory damages – these are designed to remedy your insurance company’s bad faith denial.
● Consequential damages – these are intended to compensate you for any reasonable expenses and injuries you sustained because your insurance company acted in bad faith and denied your insurance claim.
● Punitive damages – these are designed to punish your insurance company for acting in bad faith and denying your insurance claim.
● Attorney’s fees – you can get fees for hiring a personal injury lawyer in Kitchener covered but only if your jurisdiction allows it.

You should hire a personal injury lawyer in Kitchener. Doing so will help you win your bad faith insurance claim against your insurance company.