Battling Auto Insurance: Your Rights And Their Responsibilities

Fighting an auto insurance company can be a challenging and complex process, but it is possible to get the compensation you deserve. After a car accident, you may need to seek compensation from an insurance company, but it's important to remember that they will often try to pay out as little as possible. To fight an auto insurance company, you should be prepared to negotiate by doing your research, knowing the value of your car, and seeking legal assistance if needed. You have the right to dispute their assessment and seek a second opinion from an independent appraiser. Knowing your rights and the tricks insurance companies use can help you navigate the process effectively.

Know your rights under the Fair Claims Settlement Practices Regulations

The Fair Claims Settlement Practices Regulations outline the rights of claimants when dealing with insurance companies. These regulations are designed to ensure fair and equitable settlements for claimants and to prevent insurance companies from engaging in unfair or deceptive practices. Here are some key points outlining your rights under these regulations:

Non-Discrimination

You have the right to be free from discrimination in the claims settlement process. Insurance companies are prohibited from discriminating based on age, race, gender, income, religion, language, sexual orientation, ancestry, national origin, or physical disability. The regulations ensure that your claim will be assessed fairly and without bias.

Timely Response

Insurance companies are required to respond to your claim promptly. In most cases, they must accept or deny your claim within a specified timeframe, typically within 40 calendar days of receiving the proof of claim. This timely response ensures that you are not left waiting indefinitely for a resolution to your claim.

Written Communication

You have the right to receive written communication regarding your claim. If your claim is denied, the insurance company must provide a written statement listing the reasons for the denial and the factual and legal bases for their decision. This written notification will also inform you of your right to have the matter reviewed by the appropriate state department, such as the California Department of Insurance.

Thorough and Objective Investigation

Insurance companies are obligated to conduct a thorough, fair, and objective investigation of your claim. They cannot persist in seeking unnecessary information or delaying the settlement. They must also start their investigation promptly, usually within 15 days of receiving notice of your claim.

No Unreasonably Low Settlement Offers

The regulations prohibit insurance companies from making unreasonably low settlement offers. The determination of whether an offer is unreasonably low considers various factors, including the evidence submitted by the claimant, legal authority, advice from claims adjusters, and the probable liability of the insured. Insurance companies are expected to make fair and reasonable offers that align with the facts and circumstances of the claim.

Protection from Unnecessary Requirements

Insurance companies cannot require you to submit to unnecessary procedures or requests as a condition of settling your claim. For example, they cannot mandate that you undergo a polygraph examination unless it is authorized by the insurance contract and state law. Additionally, they cannot ask you to withdraw or refrain from submitting a complaint to the appropriate state department as a condition of settlement.

These Fair Claims Settlement Practices Regulations provide important protections for claimants and help ensure that insurance companies act in good faith during the claims settlement process. Knowing your rights under these regulations empowers you to navigate the insurance claims process more effectively and secure a fair outcome.

Be cautious of insurance adjusters acting like your friend

When dealing with insurance adjusters, it's important to remember that they are not your friends. While they may act friendly and concerned, their ultimate goal is to protect the insurance company's interests and minimise payouts. They are trained negotiators who will try to get you to say something that can be used against you to deny or reduce your claim.

• Be cautious when speaking to them. They may try to get you to compromise your case by saying something that can be used against you.
• Never volunteer any information. Only answer the questions asked, keeping your responses short and concise.
• Do not admit fault or discuss the extent of your injuries. This information is only relevant to you, your doctor, and your lawyer.
• Do not feel rushed. Insurance adjusters may pretend to be in a hurry to make you nervous and more likely to make a compromising statement.
• Do not give your opinion or speculate about the accident. Stick to the facts and avoid making assumptions.
• Do not lie. It is essential to tell the truth but keep your answers brief and to the point.
• Do not provide your social security number or give references. The insurance company does not need this information, and it could be used against you.
• Be wary of recorded statements. You are not always required to consent to being recorded, and it is generally advisable to consult a lawyer first.
• Do not say you are "fine" or "doing well." Insurance adjusters can use these statements to downplay the severity of your injuries and reduce your compensation.
• Avoid being too friendly. While it is essential to remain polite, do not divulge unnecessary information, as adjusters may try to use small talk to get you to relax and inadvertently say something harmful to your claim.

Remember, insurance adjusters are trained professionals who work for the insurance company, not for you. Their goal is to minimise payouts, so it is crucial to be cautious and seek legal advice if you are unsure about how to proceed.

Understand the tactics used by insurance companies

When dealing with insurance companies, it's important to understand the tactics they may employ to protect their interests. Here are some common strategies used by insurance companies and how you can navigate them:

• Friendly Approach: Claims adjusters are often trained to be friendly and sympathetic. They may act like your friend, expressing concern for your well-being and asking how you are doing. While this may seem like a kind gesture, adjusters aim to get you to share information that could be used against you to reduce your settlement offer. Be cautious about what you disclose to an adjuster before consulting a lawyer.
• Creating a Sense of Urgency: Insurance companies may try to pressure you into accepting their offer quickly, implying that it is only available for a limited time. They want to settle claims as fast as possible to free up the money they have set aside for your claim. However, don't feel rushed to make a decision. Take your time, seek legal advice, and carefully consider your options.
• Low Initial Offer: The initial settlement offer from an insurance company is often much lower than what you truly deserve. They know that you may prefer a quick payout rather than engaging in a lengthy negotiation process. Don't settle for a lowball offer; instead, be prepared to negotiate or seek legal assistance to fight for a fair settlement.
• Using Your Words Against You: Adjusters are skilled at looking for "admissions of liability" or statements that can be interpreted as inconsistent with your initial claims. Be very cautious about what you say to insurers, as even short conversations can be tricky. Consult a lawyer who can speak on your behalf and protect your interests.
• Denying or Underpaying Claims: Insurance companies may try to avoid their obligation to pay on valid claims or underpay them. They have teams dedicated to finding reasons to deny or delay claims. If you believe your claim is being unfairly denied or underpaid, consider seeking help from a bad faith insurance attorney, especially if you are in a state like California, where auto insurance claims are particularly complex.
• Appraisal and Valuation: Insurance companies may use their own databases to determine the value of your car, which may result in an inaccurate or unfair appraisal. If you disagree with their assessment, you can contest it by obtaining an independent appraisal from local body shops or garages. Presenting this information to your insurance company may help you negotiate a more accurate valuation.

Remember, insurance companies are primarily focused on minimising their losses. Understanding their tactics can help you navigate the claims process more effectively and ensure you receive a fair settlement.

Get an independent appraisal

When dealing with an insurance company, it's important to remember that they will try to pay out as little as possible. They are incentivised to pay the minimum amount, so knowing the true value of your car is important for negotiations.

If you believe the insurance company's appraisal of your car is incorrect, you can contest it by getting an independent appraisal. This can be done through local body shops and garages. Make sure you get the details of the inspection in writing so that you can present them to your insurance company.

An independent appraiser will consider your vehicle's unique characteristics and use current market comparables to determine its value. They will provide you with a certified appraisal report, which you can then present to your insurance company.

If the private appraisal does not persuade the insurer to change their position, you can contact your local department of insurance. A state representative will conduct an investigation to determine the value of your vehicle and whether the insurer is acting unjustly. If this still does not result in a satisfactory outcome, your remaining options are arbitration and litigation.

It's important to remember that negotiation is a key part of the process. Be prepared to give the insurance company as much information as possible, including police reports, photos, and witness testimony. You can also emphasise the emotional toll of the accident and how it has impacted your life.

Consult an attorney

If you've been in a car accident, it's likely that you'll need to seek compensation from an insurance company. While you can negotiate with the insurance company yourself, consulting an attorney can help you get the settlement you deserve.

Insurance companies are incentivised to pay out as little as possible for your damage. They have attorneys of their own, whose goal is to reduce settlement amounts or deny claims. The higher the amount of the claim, the harder the insurance companies and their attorneys fight. If you've suffered serious injuries, incurred extensive medical bills, or lost income as a result of the accident, it's worth consulting an attorney.

An attorney can also help if fault is being contested. When an insurance company disputes their policyholder's liability, they are saying that their policyholder is not at fault and they are not responsible for paying your damages. An accident attorney can help you provide evidence and prove that the other driver was at fault.

If you've received a settlement offer from the insurance company, an attorney can review it to determine if it is fair. If not, they can negotiate with the insurance company to try to raise the settlement amount. If an agreement can't be reached, an attorney can file a lawsuit on your behalf.

It's important to remember that every case is unique, and you are not legally required to have an attorney for a car accident claim. However, consulting an attorney can help you understand your options and protect your rights. Many accident attorneys provide free consultations, so it's worth reaching out to get an assessment of your case.

Frequently asked questions