You may have been involved in an accident and injured or suffered property damage. However, your auto insurance company is taking forever to process your claim, and now you are trying to figure out what to do. This article explains what you can do if your auto insurance company is stalling your claim in bad faith.
Steps to Take if Your Auto Insurance Company is Stalling
If your insurance company is stalling your claim in bad faith, here are some of the steps to take to compel them to fasten the process:
- Confirm with your auto insurance company that you have already submitted all the necessary documents.
- Get in touch with your insurance company for updates on your claim. Ask them if they need anything from you to proceed with your claim.
- Write a demand notice letting them know you have been waiting for your claim for too long and that they should finish the process.
- If you have done all these steps, but your auto insurance company is still stalling, you need to contact an experienced lawyer to help you handle the claim.
There are many reasons that may cause your auto insurance company to delay your claim, including:
- They may delay the claim, so you may decide to drop it along the way or settle for a lesser payout.
- They may deny all claims from the start to make you think you are not eligible to pursue the claim.
- Making you wait for a long time is a plus for your auto insurance company since evidence can get lost during your waiting time.
- Most auto insurance firms have a statute of limitations that gives their clients a grace period of one year from the date of the accident to file a claim.
What Happens if an Insurer Fails?
In the United States of America, if an insurance company fails, the state guaranty association will transfer the insurer’s policy to another insurance firm. You can continue paying premiums if the state takes over your insurer since the state guaranty association can also provide coverage for policyholders.
Policyholders who continue to pay their premiums will have their coverage intact. However, if an insurance company doesn’t have enough money to compensate policyholders, the state guaranty association will use the firm’s assets to settle claims.
Why Do Insurance Companies Not Pay Out?
There are many reasons that may cause your insurance claim to be denied, including:
- Problem with your insurance policy – insurance companies may reject a claim if there is an issue with your insurance coverage.
- An insurance company may reject your claim if there is no valid insurance policy.
- Insurance companies may deny your claim if it discovers that your coverage has lapsed. Your insurance coverage may lapse if the insurance company collapses or you fail to pay your premiums on time.
- Your claim may be denied if the insurance company finds out that the damage you sustained is excluded from your coverage.
- Your claim may be rejected if there is no clear evidence to show that the policyholder is on-fault.
- Insurance companies may also reject your claim if you fail to file a timely claim. You need to contact your insurance company immediately after you get involved in an accident.
If your insurance company is stalling or has denied your claim, it is crucial to contact a qualified lawyer. An attorney will examine your case and determine whether to sue the insurance company.