You have the right to take legal action and file a lawsuit against your provider if you believe your policy was cancelled for fraudulent reasons. You can obtain damages for financial and emotional suffering caused by an insurance company’s bad faith with the help of Brasher Law Firm, PLLC.
Can an insurance company just drop you?
When an insurance provider cancels a policy, it means your coverage ends and you are no longer covered. Insurers can’t terminate policies that are more than 60 days old, according to the Insurance Information Institute, but there are exceptions. If you don’t pay your premiums, lie on your application, or have your driver’s license suspended or revoked, your insurance may be cancelled.
What do you do when your insurance company ignores you?
If an insurance firm still does not return your call, it could be a sign of bad faith. When an insurance provider acts in bad faith, it means it is not treating your claim fairly or appropriately. It is not treating your claim fairly or in a good faith effort to fulfill its contractual obligations. Instead, the insurance is attempting to persuade you to accept as little as possible in order to boost its profits. The insurance company understands that the longer it takes to handle your claim, the more money it will earn in interest.
It is not a sign that you filed your claim wrong or that you do not have coverage if an insurance company ignores you. It’s not the same as being denied a claim. Many insurance firms employ this approach to unfairly lower the value of a claim. Insurance companies are frequently unconcerned about meeting deadlines or being under pressure to resolve your claim. Meanwhile, you may incur escalating medical fees and damage repair charges as a result of the squandered time. The insurance company is aware of this and may utilize communication delays to put you under more stress. It could be considered bad faith if frequent delays or missed connections continue.
Can an insurance company drop you at any time?
Customers cannot be dropped from vehicle insurance without cause (unless during a new customer’s trial period, which normally lasts 60 days from first sign-up), so if you believe you may have been dropped illegally, check with your state’s insurance agency.
Suing an Insurance Company for Negligence
Negligence is defined as a failure to act or comply with the requirements of a legal agreement from a legal standpoint. You may be able to sue an insurer for gross negligence, which is defined as a failure to act that leads to a disregard for safety.
If your insurance acted or failed to act in a way that caused you harm, you can sue them for negligence or gross negligence:
- You can claim for negligence if your insurance agent fails to offer the coverage you requested or fails to advise you of your options.
- If your insurance company neglected to explain or misrepresented about what your policy covers, you could file a negligence case. You might claim for deception if they lied about your coverage.
- If your insurance fails to fulfill its obligations, you might initiate a negligence case. It can include not responding to a claim or appeals letter or failing to perform a thorough inquiry.
- You could claim for negligence if your insurance provider failed to warn you that they were going bankrupt or that your coverage was about to expire.
Can I sue an insurance company?
You have the right to sue your insurance company if they break or fail to follow the conditions of the policy. Not paying claims in a timely manner, not paying claims that have been properly filed, and making bad faith claims are all examples of common infractions.
Fortunately, there are numerous rules in place to protect consumers like you, and it is not uncommon for a policyholder to file a lawsuit against his or her insurer.
It’s difficult enough to deal with property loss, injuries, the death of a loved one, or any other calamity. It’s easy to feel overwhelmed when you have to fight your insurance provider on top of everything else.
Continue reading to discover the basics of filing a lawsuit against your insurance company for refusing your claim or other wrongdoing.
Is it hard to get car insurance after being Cancelled?
You’ll have to pay more for new insurance if your auto insurance was cancelled due to too many traffic tickets or an offence such as a DUI. Standard or high-risk insurers may not be able to provide any. If that’s the case, you can get insurance through your state’s assigned risk pool. You can receive insurance regardless of your situation; however, you may have to pay a higher premium.
An assigned risk pool coverage can be obtained from any insurance agent in your state. Before you can get it, you may need to show that you’ve been turned down by three companies in some states.
How long does Cancelled insurance stay on record?
While both cancellation and nonrenewal result in a loss of automobile insurance, the reasons for each can be very different. Because it can influence your insurance record, car insurance cancellation is usually considered more significant than non-renewal of your policy. Nonrenewal is less difficult to recover from, but it can still suggest problems that need to be addressed.
Car insurance cancellation
According to the Insurance Information Institute, the following are the most prevalent reasons for vehicle insurance cancellation:
When you cancel your auto insurance coverage, it typically stays on your insurance record for five years, although it can be longer. This may necessitate the purchase of high-risk auto insurance, which has higher-than-average prices.
There are laws in many states that govern when your vehicle insurance policy can be canceled. You’ll normally be given between 15 and 45 days notice, depending on which state you live in, before you’ll need to get a new policy. You will receive a cancellation notice informing you of your coverage’s expiration date.
You can dispute the cancellation, although this rarely works unless the cancellation was caused by a credit rating error. In this instance, request a re-rating from your car insurance company. If you paid for your auto insurance in advance, your insurer should refund the money you didn’t spend.
Car insurance nonrenewal
It’s not as bad as cancellation if your auto insurance company decides not to renew your coverage when it’s due to expire. When you’re looking for new auto insurance following a nonrenewal, your premiums shouldn’t go up. The following are some of the reasons for non-renewal:
Relax. You have options.
Before you attack the problem, take a big breath. The good news is that you have choices! Before you start making frantic phone calls, learn more about your position. Everything will turn out fine.
Your vehicle insurance company dropped you for a variety of reasons. The following are the most prevalent grounds for insurance cancellation:
- Non-payment. Have you forgotten to pay your auto insurance? Nonpayment of premiums is the most typical reason for cancellation by the insurance carrier. Some insurance providers will allow you to reactivate your policy if you pay your balance within a certain time frame.
- There are far too many traffic offenses or accidents. Insurance companies can cancel or refuse to renew a customer’s policy if they commit significant traffic offenses, such as DUIs or violations that result in a driver’s license suspension, or if they file too many insurance claims in a short period of time.
- There’s no cause for it. We understand that having no reason isn’t much of a reason, but many states allow insurers to terminate your vehicle insurance coverage without giving a reason within the first sixty to ninety days of your policy (known as the “underwriting period”). Insurance companies frequently do this if they discover inconsistencies in your policy application, so being honest when applying for a car insurance coverage pays you.
Depending on why you were dropped, you may be able to correct the situation right away. If you have the ability to pay your bill, do so. Otherwise, contact your car insurance company and see if you can come up with a solution together.
Don’t drive without car insurance.
Driving without insurance or financial accountability is illegal no matter where you live. It’s not a good idea! You’ll face a penalty if you drive with canceled vehicle insurance anywhere from Florida to Oregon. The following are examples of penalties that differ by state:
Being informed that you’ve been dropped from your insurance can be quite upsetting, especially because you can’t legally drive without it. Take public transportation while you work on regaining insurance. Take a ride on your bicycle. As you walk to work, listen to a podcast. Request a ride from friends or relatives! It may be irritating, but it’s preferable than losing your driver’s license or going to jail.
Apply for a new car insurance policy.
Drivers who aren’t qualified for reinstatement can get a new vehicle insurance coverage by calling, going online, or going in person. Direct Auto works with all types of drivers, including those with a poor insurance history.
Maintain continuous coverage with your new auto insurance policy to avoid not only another drop, but also higher premiums and policy discounts (i.e. renewal discount/previous insurance discount).
Prepare yourself for different insurance rates.
If you’ve been dropped due to nonpayment or excessive infractions and claims, you’ll most likely be labeled a high-risk customer, and your insurance premiums will likely increase. If you’ve been dumped by another insurance company, certain insurance firms may refuse to work with you.
However, at Direct Auto, we take a different approach. We think that everyone deserves inexpensive car insurance, and we urge all drivers, regardless of their driving or insurance background, to apply for coverage.
It’s time to contact us if you’re worried about your existing insurance company canceling or not renewing your car insurance, if you’re having trouble getting insurance after an accident, or if you’re just looking for new prices. We may be able to provide you with the auto insurance you require at a low cost. To learn more, call 1-877-GO-DIRECT (1-877-463-4732), click to obtain a quotation online, or visit a Direct Auto dealership near you.
What is it called when an insurance company refuses to pay a claim?
Bad faith insurance refers to an insurer’s attempt to breach its duties to its customers, such as refusing to pay a legitimate claim or failing to examine and process a claim within a reasonable timeframe.