Pursuing Auto Insurance Claims: When To Hire A Lawyer

If you've been in a car accident, you may need to hire a lawyer to help you with your auto insurance claim. This is especially true if your claim has been denied or if you've been offered an inadequate settlement amount. A good car insurance lawyer will be able to review your claim, determine if you have a valid claim dispute, and help you fight for a fair settlement. They can also help you understand your policy and the coverage available to you. It's important to note that every case is unique, and you may not need a lawyer for more minor accidents. However, for more serious accidents, a lawyer can provide valuable assistance in dealing with insurance companies and navigating the legal process.

When to hire a lawyer

There is no legal requirement to hire a lawyer when seeking compensation after a car accident. However, a lawyer can help you navigate the claims process, investigate the crash, gather evidence, and negotiate with insurance companies. Ultimately, the decision to hire a lawyer depends on your level of comfort with handling the claim yourself.

• Serious injuries or long-term impact: If you have sustained serious injuries that have resulted in hospitalization, loss of income, extensive medical bills, or long-term disabilities, a lawyer can help you seek the compensation you deserve.
• Contested fault: If fault for the accident is disputed, and the other driver or their insurance company is refusing to accept liability, a lawyer can help you prove fault and strengthen your claim.
• Inadequate settlement offers: If you believe the settlement offer from the insurance company is too low and does not adequately cover your losses, a lawyer can review the offer and negotiate on your behalf.
• Complex or multiple parties involved: If there are multiple parties involved in the accident, or if the case is complex and difficult to navigate, a lawyer can help you make sense of the legal complexities and ensure your rights are protected.
• Pre-existing injuries: If you had a pre-existing injury that was exacerbated by the accident, a lawyer can help differentiate between the pre-existing condition and new injuries, ensuring you receive compensation for the latter.
• Lack of legal knowledge: If you are unfamiliar with legal procedures, filing a lawsuit, or dealing with court proceedings, a lawyer can guide you through the legal process and ensure you don't miss out on the compensation you are entitled to.
• Persistent pain or impact on quality of life: If you are experiencing persistent pain or if your injuries are affecting your ability to work or enjoy your daily life, a lawyer can help you seek fair compensation for your suffering.
• Uncooperative opposing party: If the other party involved in the accident or their insurance company is uncooperative or unwilling to negotiate, a lawyer can act as your advocate and help resolve the dispute.
• Time constraints and deadlines: After a car accident, there are usually time limits within which you must file your claim. A lawyer can ensure that you adhere to these deadlines and navigate the claims process efficiently.
• Insurance company issues: If your insurance company is acting cagey, not communicating, or has gotten their own attorneys involved, it may be a sign that you need to hire a lawyer to protect your interests.

Insurance company acting in bad faith

When dealing with auto insurance claims, it is important to know your rights and understand when your insurance company might be acting in bad faith. Bad faith insurance refers to unfair conduct by an insurance company, such as denying or delaying a valid claim or not providing full payment. This can happen when insurance companies prioritise profits over their clients' interests, knowing that many policyholders will accept the denial of their claim and not pursue the matter further.

• Misrepresenting contract terms and language or not disclosing policy provisions, exclusions, and terms to avoid paying claims.
• Failing to acknowledge or investigate a claim promptly.
• Unreasonable delay in payment or only making partial payment when the full claim is payable.
• Failing to provide a reasonable explanation for denying or partially covering a claim.
• Refusing to defend or settle a claim on behalf of the insured.
• Making unreasonable demands on the policyholder to prove a covered loss.

If you suspect that your insurance company is acting in bad faith, you have several options. You can confront your insurance company directly or consult a lawyer, especially one specialising in bad faith insurance claims. They can help you understand your rights, review your claim, and determine if the insurance company is indeed acting in bad faith. A lawyer can also assist in negotiating with the insurance company and, if necessary, filing a lawsuit against them.

It is important to act promptly, as there are time limits for bringing claims against an insurance company for bad faith, which vary by state. For example, in Pennsylvania, there is a two-year limit on filing a lawsuit for bad faith.

By understanding your rights and taking action, you can protect yourself from insurance companies acting in bad faith and ensure you receive the full benefits owed under your policy.

First-party insurance claims

A first-party insurance claim is a claim you make directly against your own insurance. This is in contrast to a third-party insurance claim, which is made against someone else's insurance provider.

When you file a first-party insurance claim, you are the one who has taken out the insurance policy and pays the bill. You notify your insurance company of the accident and ask them to pay you fairly for your losses under the terms of the contract.

• Contact your insurance company as soon as possible after the accident. Most auto insurance policies have a "notification and cooperation" clause, which means you agree to notify the insurance company of an accident and cooperate with their investigation.
• Get contact, vehicle, and insurance information for anyone involved in the accident, as well as contact information for any witnesses.
• Take photos or videos of the loss, damage, or injury.
• Contact the police and file a report.
• Look at your proof of insurance to find your policy number and how to contact your insurance company.
• If possible, take steps to prevent further damage to your car.
• Keep all records related to your claim, including repair estimates, emails, receipts, and medical bills.
• Work with the insurance adjuster assigned to your claim. They will investigate your claim and determine what is covered under your policy and how much is owed.
• If you disagree with the adjuster's decision, you may negotiate further or file a formal claim in court.

It is important to note that your insurance company has a legal obligation to treat you fairly, but they will try to pay you as little as possible. If you feel that your insurance company is acting in bad faith, you can contact a personal injury attorney for help.

Third-party insurance claims

If you've been in a car accident that was caused by another driver, you can file a third-party insurance claim with the other driver's insurance company to cover the cost of repairs to your vehicle and any injuries you may have sustained. This is a type of liability claim, and the other driver's liability coverage will pay for the damage and injuries they have caused.

In some states, you can only make a third-party claim to cover the cost of damaged property and not your injuries. These are known as "no-fault" states, and in these cases, you would need to file a claim with your own insurance company to cover your injuries. No-fault laws were established to reduce or eliminate ordinary injury lawsuits with low-dollar price tags and a high number of claims for pain and suffering.

To file a third-party claim, you will need to know the other driver's name, auto insurance policy number, phone number, and details about the accident. You can then work with your insurance company to file the third-party claim, or you can do it yourself through the other driver's insurance company. It is important to gather as much information as possible at the scene of the accident, including the other driver's contact and insurance details, as well as taking photos of the damage and the scene of the accident.

If your third-party claim is successful, you will receive a payout, also called a settlement offer, from the other driver's insurance company. If your claim is denied or you believe the settlement offer is too low, you may need to consult an attorney, especially if your injuries are serious and have resulted in hospitalization, loss of income, or extensive medical bills. An attorney can help you review your settlement offer and negotiate with the insurance company to try and raise the amount. They can also help you file a lawsuit if necessary.

Establishing insurer's bad faith

When dealing with insurance companies, it's important to understand the concept of "bad faith". Every insurance contract contains an implied covenant of good faith and fair dealing. If an insurance company violates this covenant, it is said to have acted in "bad faith".

Establishing insurers' bad faith can be complex and varies depending on whether it's a first-party or third-party claim. First-party claims are when you make a claim with your own insurance company, whereas third-party claims are made against another person's insurance company.

• Unreasonably delaying or withholding benefits without proper cause
• Unreasonably failing to reimburse the insured for the entire loss amount
• Unreasonably failing to settle or defend a lawsuit
• Unreasonably delaying payment of benefits or investigating a claim
• Biased investigation or factual determination
• Misrepresenting the nature of investigatory proceedings or lying during depositions
• Focusing on facts justifying denial and ignoring evidence supporting the claim
• Interpreting the policy language in an unreasonable manner
• Requesting redundant or unnecessary paperwork
• Issuing threats
• Tampering with witness testimony
• Concealing evidence

If you suspect an insurance company of acting in bad faith, it's important to consult with an experienced attorney, as they can help review your case and determine if the insurer's misconduct rises to the level of bad faith. An attorney can also advise on the best course of action and help you navigate the legal process.

Frequently asked questions