Auto Insurance

Automobile insurance is a type of insurance for cars, trucks, motorcycles, and other street legal vehicles. Its primary purpose is to provide financial protection in the event of an accident, and against liability that may also result from accidents and other incidents in that vehicle. 

Auto insurance is a contract between you and your insurance provider, in which you agree to pay a monthly premium. In exchange, the provider agrees to pay for your losses in the event of an accident, so long as those losses are covered by your specific policy.

In most states, auto insurance is required by law and there are fees or penalties imposed for driving without it. Auto insurance coverage is heavily determined by what policies your insurance provider offers, what policy you have purchased, and the specifics of that policy. There are six basic types of automobile insurance coverage

What are Some Examples of Auto Insurance Conflict?

The best way to avoid auto insurance conflicts is to thoroughly understand the details, coverage, and limitations of your auto insurance policy before signing a contract with the insurance provider. One of the biggest examples of auto insurance conflict is a conflict of interest, or when each driver involved in an accident is covered by the same insurance company.

Another common auto insurance conflict occurs when a suit is filed against the insured client, and that suit contains allegations that are both within and without policy coverage, or if the suit filed against insured seeks damages in excess of the agreed upon policy limits. Some other examples include:

• The insurance policy provider is denying payments or coverage in the event of an accident;
• Issues with insurance fraud, such as vehicle dumping, false registration, exaggerated repair costs, etc.;
• Disputes regarding insurance rates, such as signing a contract after being assured one rate when signing the contract and then being charged another;
• Liability issues between drivers and other passengers;
• Cancellation disputes; or
• Breach of contract by either party.

Once again, one of the best ways to avoid conflict is to ensure you are clear on the terms of your policy, and get everything in writing.

What Should I Know About Suing My Auto Insurance Company?

As a consumer, you are absolutely entitled to sue your own insurance company. However, you will need to prove that you have a legitimate case, and you will need to properly file a civil suit against them. 

There are several laws in place to ensure that insurance companies are not abusing their power and position in order to take advantage of their clients. Further, as most states have minimum car insurance requirements, so these laws are particularly stringent. 

Consumer protection law and contract law are the two main legal fields that come into play when suing an auto insurance company. Some of the more common insurance claims include:

• Bad Faith: A bad faith claim could include misrepresentation of coverage and benefits, unnecessarily or intentionally delaying the claims process, refusal to pay a claim where liability is reasonably clear, or advising policyholders not to hire an attorney to pursue their claim against the insurance provider. Improperly denied claims are one of the most prevalent examples of bad faith;

• Unfair Competition: This generally means that any unfair, unlawful, or fraudulent business act or practice. Unfair competition includes false advertising and misappropriation, and extends to unfair, deceptive, untrue, or misleading advertisements;

• Antitrust: Antitrust laws regulate the way companies are allowed to charge their customers for their services. This regulates businesses, and promotes fair competition for the benefit of the consumers; and

• Breach of Contract: A breach of contract lawsuit generally requires that the policyholder only needs to show that the insurance company did not follow the terms of the policy.

It is important to ensure you have a valid claim, as it is difficult to win against an insurance provider due to the fact that they have a lot of money and power backing them up. Further, when they refuse to pay for an auto insurance claim, it is generally because they have a good reason to do so. You will need to consider if it is ultimately worth the effort to sue the insurance company.

Do I Need an Attorney for a Conflict Regarding My Automobile Insurance Coverage?

Some conflicts with your auto insurance company can be solved with some simple communication between you and the provider. However, some conflicts will require legal action. Further, each state has different laws regarding filing suits against auto insurance providers. 

A skilled and knowledgeable insurance attorney will be aware of these laws, and will help you understand your policy. Additionally, the attorney will determine if you have a claim against your auto insurance provider, and what options may be available to you depending on the specifics of your case.