Dealing With the Bad Faith Denial of an Insurance Claim
When you have been injured in an accident, and you have insurance coverage for some or all of your losses, your first recourse will likely be to submit a claim to the insurance company. Don’t be surprised, though, if your insurer takes a long time to settle your claim, or if you get a lowball offer or what seem like unrealistic demands to document your losses. Consumers across the country report that insurance companies routinely make things difficult, even when the cause and extent of the loss are obvious.
Here’s the first thing to remember—insurance companies are for-profit businesses, and they maximize their profit by minimizing the amount they pay out. They are less interested in seeing that you are fully and fairly reimbursed for your losses than they are in keeping their payout as low as possible. Often, the principal objective of a delaying tactic is to get you to take less than you need or deserve. A report in the late 90s concluded that a one percent reduction in payouts by one of the major insurance companies added up to a 28 cent increase in earnings per share for the company’s stockholders.
So what can you do?
The most important thing is to work with a reputable insurance company. Just because an insurer is well-known, though, doesn’t mean they will treat you fairly. Consumers report significant problems with many of the most well-known providers of insurance. You can, though, research the claims payment records of an insurance company to determine which providers are more likely to be stingy with claims payouts.
If you have already obtained insurance, there are still a number of options:
- File a written complaint with state insurance company regulators
- File a lawsuit against the insurer
- If there are others who are similarly situated, contact an attorney to determine if a class action is possible
Contact the Law Offices of J. Lewis & Associates
To discuss your legal needs with an experienced Riverside personal injury lawyer, contact our office online or call us toll-free at 9516820488. There is no charge for your initial consultation. Se Habla Espanol.