You pay hundreds or even thousands of dollars on auto insurance premiums every year depending on your vehicle and your driving record. If you are paying this much money out-of-pocket for peace of mind, it is important to know that your claims will be covered by your insurer. Unfortunately, not everyone is lucky enough to have a stress-free and smooth claims processing experience.
If you receive a claim denial letting in the mail, you may be left asking yourself why your policy is not paying. Do not accept the fact that the insurer is denying your claim, and find out if their reasons have been made in good faith. Read on and learn how to determine if your claim was wrongfully denied.
1. The Insurer Has Not Acted in Good Faith
Insurers are required by law to act in good faith when investigating claims and interpreting the terms of their policies. This means that the insurer must act in a reasonable manner and put their policyholder’s financial interests ahead of their own. At no point during the claims process can the adjuster use trickery or deception to deny a claim or force a claimant to hire an attorney to receive payment. If denial was based on deception tactics or based on the financial interest of the insurer, you have the right collect for damages.
2. The Agent Cannot Misrepresent Your Coverage
Insurance agents are in business to sell policies. Most consumers are looking for policies that are cheap and comprehensive in coverage. During the sales process, your agent must be honest with you about the coverage options and limits you are paying for. If your claim is being denied because you are not carrying a coverage that your agent told you was included, the claims department must honor the coverage because of the misrepresentation.
3. Ambiguity in the Policy Was Determined in the Favor of the Insurer
Insurance policies cost millions of dollars to construct, and a whole legal team writes each and every sentence with care. If there are any areas of the policy that are ambiguous and pertain to your claim, the insurer must interpret the terms in the way that favors you. Insurers have incomprehensible terms because they want to have less of an obligation to pay, but it is against the law to have loop-hole policies that only benefit the company.
4. The Company Tries to Rescind the Policy When You File a Claim
There are not many instances where an insurer has the right to rescind coverage back to the date of inception once you file a claim. If the company is attempting to do this, stand up and fight for yourself. Companies cannot do this past an incontestability period, typically two years, or they are acting in bad faith. If this is the case, you should hire an attorney like Taylor and Blair, an ICBC lawyer in Coquitlam, to represent you in court and go through the legal process.
Insurers may attempt to act in bad faith if it means that they can save money. Do not fall for the ploy and exercise your right to collect for your claim. Research the tactics that adjusters will use, and fight for yourself from the minute you receive a denial letter.