Insurance companies deny claims all the time for a number of reasons, some good but others not. Damages from car accidents can be substantial, so where your claim has been denied, you deserve to explore every option to get the financial relief that you are owed.
This may include bringing the insurance company that denied your claim to court. Through damages, you can recover the amount that you were originally owed, plus additional punitive damages if the insurance company frivolously denied the claim or otherwise acted in bad faith.
To discuss your legal options for pursuing the money that your insurance company owes you, reach out to The Carrion Law Firm’s seasoned New York car accident attorneys. When you call our offices today at (718) 841-0083, you can get a first-time case assessment for free.
Can You Sue Your Car Insurance Company for Denying Your Claim in New York?
If your car insurance company recently denied your claim, you may want to consider discussing your options with a Queens car accident attorney. While some insurance claims denials are valid, the insurance company may have mistakenly or deliberately issued a denial on your otherwise valid claim. In these cases, the only way to obtain the monetary remedy to which you are entitled may be through the justice system.
It is important to remember that New York is a no-fault car insurance state. Practically, this means that car accident injury victims are generally required to recover compensation for their harms through their own insurance provider, even if another driver was responsible for causing a car accident. A limited exception to the no-fault rule exists only where the victim’s injuries exceed the statutory definition of what is considered “severe” in New York. If you are not sure whom to look to for compensation after a car accident, discuss your case with a dedicated New York car accident attorney before taking any next steps.
You can, in fact, sue your insurance provider for denying your claim in error. When you purchase coverage from an insurance provider, you enter into a contract with the provider. If the insurance company does not live up to their end of the contract, you can name them in a breach of contract action.
This is particularly important if you have reason to believe that your insurance company has acted in bad faith in denying your claim. Insurance companies act in bad faith when they issue frivolous denials of claims, unnecessarily delay payments on valid claims, or exert unfair pressure on claimants to settle for less than they deserve. In a successful lawsuit against a car insurance company alleging bad faith, the plaintiff can recover additional punitive damages from the insurance company on top of what they were already owed in compensatory damages for the erroneous denial of the claim.
What if Insurance is Denying Your Accident Claim?
Car insurance companies may, rather than denying your claim outright, just delay it over and over again. This can benefit them in a few important ways – and hurt you:
- If you wait for a denial, you may end up close to the statute of limitations on the underlying claim running out.
- If they can keep stringing you along, they do not need to pay you.
- It costs very little for them to maintain an open claim; they just need to send periodic updates that it is still being investigated.
However, you can call a New York car accident lawyer and act instead of waiting for insurance to make up its mind.
When Should I Get a Lawyer Involved?
You should call a lawyer as soon as you can after your accident. This allows you to get your attorney involved in the insurance claim and have them be the point of contact on your case.
That means that instead of dealing with you – who the insurance company might think they can push around – they have us to contend with.
How Does My Lawyer Tell the Insurance Company to Pay Up?
We can start our communications with a demand letter that lays out all of the damages you have faced, their legal obligations to pay you under the relevant policy, and the consequences of what will happen if they continue to delay. Those consequences will be a lawsuit.
Can I Get Extra Damages for Delays?
First, your damages can include interest. This means that if they continue to delay your claim before paying, you do not just get the money you were initially owed, you also get interest on those payments. That allows the money you do receive at the end to account for the delay in time.
However, that additional interest usually is not enough to stop insurance companies from delaying.
Second, and more importantly, unfair delays with no legal grounds could be a sign of bad faith. If the insurance company acted in bad faith, we can potentially request punitive damages on top of the full payment of the claim’s value. This can get you additional funds to punish insurance companies for their improper behavior.
When Do Delays Constitute Bad Faith Insurance?
Insurance companies are required to follow a duty of good faith, meaning they will make a good, honest effort to pay valid claims that are covered under the terms of the policy. This is separate from the fact that they have a contractual obligation to pay claims under the policy; this duty says they have to go beyond and make a good faith effort to pay you under the contract.
Unfair delays can often constitute bad faith. If facts show that the insurance company is just trying to sit on the case rather than actually pay the claims, it would violate their obligation.
What Constitutes Evidence of Bad Faith Delays?
Sometimes, we can seek records of what the insurance company has done on your claim. This can show what investigatory steps have actually taken place, potentially highlighting the fact that there have been no appraisals or investigations taken up on the insurance company’s end.
We can also look for call records about your case, emails, letters they sent out, and other communications to see what, if any, steps were taken to pay your claim. If these show that they stopped communicating with you, failed to update you as required by law, and simply ignored the existence of the claim, we might be able to prove bad faith insurance.
What If They Cancel My Policy?
One of the biggest delay tactics insurance companies may try to use is canceling your policy. This could be based on an underpayment or based on lies they manufactured to cancel your policy without good reason.
Once the policy is canceled, the insurance company can say there is no claim because there is no policy. This slows things down and potentially requires the claim to be restarted entirely.
If they canceled the claim and the policy without notice or without good reason, this might ultimately be good evidence of bad faith as well.
What if They Stop Returning My Calls?
Again, insurance companies avoiding calls and trying to end communications with you is further evidence of them acting in bad faith. Instead of you being the one to call or try to get in touch with the insurance company, our firm can do it.
When insurance companies receive letters from law firms demanding evidence, records, and payment, they tend to listen. These letters, from their perspective, are often a warning sign of a lawsuit coming down the line.
If the insurance company shapes up, it may get your claim paid – and that might be enough. However, due to all of their delays and evidence of bad faith, we can potentially still take them to court.
When is it Too Late?
If you filed your claim, and the insurance company has delayed your claim for years, it might end up being too late to sue. However, there are two deadlines to consider:
- The deadline to file a claim for damages from your accident
- The deadline to file for bad faith insurance.
The deadline to file your injury claim passes at the 3-year mark after your accident. It is unlikely insurance companies will deny claims this long, so you may still be able to file your lawsuit, whether they have given you a final denial or not.
The clock on the deadline to file a bad faith insurance claim starts running when the denial happens. If they have just been denying your case over and over, it can be difficult to tell when a “constructive denial” happens or if the harm is ongoing. Either way, call us as soon as you run into stonewalling or difficulty getting your claim paid to avoid any issues with the statute of limitations.
What to Do After Your Insurance Company Denies Your Car Accident Claim in New York
Once you are notified that your claim has been denied, there are a few steps you should take before jumping straight into a lawsuit. The first of these steps is to ensure that the insurance company has provided the basis for their decision to deny your claim. The reasoning that the insurance company gives should be in writing. Most insurance companies automatically generate a denial letter which will contain the reasons for the denial. If you do not receive such a letter, you should request one immediately.
Your contract with the insurance company may contain language that dictates how the appeals process works. You can request that the insurance company review the determination made by the representative (also known as a claims adjuster) in your case. This could involve the hiring of an independent claims adjuster to conduct their own objective investigation. You can also file a complaint with the state’s Department of Financial Services, with which our experienced Bronx car accident attorneys can assist you.
Do You Need an Attorney When Suing Your Insurance Company for Denying Your Car Accident Claim in New York?
While you are not required to obtain legal representation to dispute an insurance claim denial in New York, having a dedicated Pittsford car accident lawyer on your side can benefit you in more ways than one.
New York City car accident lawyers are already familiar with the complex procedural rules of insurance denial appeals and the aspects of bad faith allegations and can explain the often-vague language of your insurance policy and contract as it pertains to your claim. You can also leave all communication with the insurance claims adjusters and representatives to your Brighton car accident lawyers so that you can avoid additional stress while you are also dealing with the consequences of your injuries. Insurance companies that know they are dealing with a claimant who has legal representation are less likely to attempt underhanded tactics or exert pressure that could constitute bad faith.
Before taking any additional steps in your case, reach out to a Brooklyn car accident attorney as soon as possible to help you recover what you are owed.
How Long Do You Have to Sue Your Insurance Company in New York?
A lawsuit against one’s own insurance company for an erroneous or bad faith claim denial must be filed in court within the appropriate time window provided by the statute of limitations. In New York, the statutory period for filing lasts for six years. However, the language of the policy contract between you and the insurance company may put additional time constraints on your ability to file, so it is important that you act quickly. If you miss your filing window, you will be left unable to recover the compensation that you deserve.
Our New York Car Accident Lawyers Can Help You Sue Your Insurance Company in New York
If your recent car accident insurance claim was wrongly denied, let the seasoned Long Island car accident lawyers at The Carrion Law Firm help you get justice. Get started by calling us at (718) 841-0083 for a free initial case assessment.