If you have received an auto insurance claim denial, do not view it as the end of your quest to obtain compensation for your injuries and damages. A claim denial is not the final answer to your claim, but rather is the starting point upon which other legal remedies hinge. Below is an explanation of the legal remedies available to a party injured in an auto accident after his claim is denied.
Sue the Insurance Company for Bad Faith
The first option is to sue the insurance company for a bad faith denial of your claim. A bad faith lawsuit alleges that the company did not pay you as required to do by your contract. In such a lawsuit, you must demonstrate that you were injured or incurred damages in an auto accident, that you made a claim, that you were entitled under your contract with the insurance company to compensation for your claim and that the insurance company failed to pay you.
Write a Demand Letter
After receiving a denial of your claim, you can send the insurance company a demand letter for the cost of your injuries and damages. This letter differs from a claim because it is not requesting money but rather insisting on payment. A demand letter is the starting point for negotiations, meaning that the insurance company would most likely respond with a counteroffer of an amount of money it is willing to pay you.
File a Lawsuit
Your next step after receiving a claim denial can also be to file a lawsuit. The defendant you identify as being responsible for your injuries and damages can be your insurance company, the other party involved in the accident or the other party’s insurance company. The proper defendant to name is the one you believe is at fault for the accident and liable for your damages. Do not hesitate to name all parties in your lawsuit; if the court finds that one or more of the parties should not be included in your complaint, he will excuse them from the litigation.
Request Mediation or Arbitration
Another step you may take is to request that you and the insurance company participate in mediation or arbitration about the dispute. Mediation is a process whereby a third, neutral party attempts to negotiate a settlement acceptable to all parties involved in the car accident. If a settlement is reached, it is not binding until all parties sign, indicating their approval of it. Arbitration is the process where a neutral third party acts as a judge, receiving evidence and making a final decision about the case. The decision of the arbitrator is binding on all parties. Both of these procedures are held outside of court and must be agreed to by all parties.
Getting Legal Help
If you received a denial of your auto accident claim, seek legal advice about your remedies. A lawyer will review the facts of your case and the denial of your claim and advise you about the legal options available to you.
