New York drivers rely on their no-fault policies after a crash. This is your policy; you pay for it, and the insurance company works for you. But that doesn’t always mean that they’re going to work well with you, pay you, or even tell you the truth.
Insurance companies could be guilty of misrepresenting the terms of their own policy, either by explicitly telling you it says something it doesn’t or by trying to deter you from using coverage by explaining things poorly or vaguely. Because of this, it is vital to always work with a lawyer instead of trusting the insurance company. When they do lie to you or try to block coverage, we can take them to court.
Call The Carrion Law Firm’s New York car accident lawyers at (718) 841-0083 today.
Is My Insurance Company Allowed to Lie?
When you sign up for an insurance policy with a company, that is a contract. It dictates what the terms of your policy are, what they need to cover, and what areas they can avoid covering. This is supposed to be the full set of terms, and insurance companies expect you to read and understand the policy.
They are also required to try to fulfill the contract in good faith by making an honest effort to pay claims that fall under the policy. Everything else has some legal gray areas insurance companies bank on.
If they lie to try to induce you into signing a policy, that would be clear fraud. If they lie to try to get you to avoid a right you have under the contract, that might also be fraud. However, they do not have to explain the policy to you or hold your hand, so you should always have a lawyer on your side to make sure what they are saying matches the policy.
Conducting a business through fraud is patently illegal, but simply not telling you the whole truth or failing to correct a misunderstanding might be legally gray enough that the insurance company will try to get away with it.
Is My Car Insurance Lying to Me?
Understanding your rights under your insurance policy – and under NY law – is important. Only once you know what your policy says can you determine whether the insurance company is lying to you about it.
Under a typical no-fault insurance policy in New York, you must be covered for the following:
- A $50,000 limit for your injuries
- Coverage for medical bills up to limits
- Lost wage payments up to $2,000 per month for 3 years
- $25 per day in daily expenses for up to 1 year.
In addition, you can get additional coverage to pay for your auto repairs. Both policies usually have a deductible you need to pay first.
If your insurance is telling you that they will not cover a crash you caused, they are probably lying. This is no-fault coverage and applies regardless of who caused the accident.
Insurance Bad Faith Claims
Other issues of misrepresentations and fraud from insurance companies come in the form of insurance bad faith. As mentioned, insurance companies have a duty to make a good-faith effort to pay valid claims. Many excuses that insurance companies like to use are legitimate, but others fall under the category of bad faith.
In a bad faith insurance case, the insurance company tries to deny your claim or avoid the claim altogether by producing irrelevant or fraudulent issues or reasons for denials. This can involve the following kinds of issues – which customers often feel are “lies”:
- Saying your policy was canceled when it wasn’t
- Saying you are behind on premiums when you aren’t
- “Losing” any record of your policy, payments, or claim
- Saying you have a different type of policy than you do.
Other bad faith issues deal with misdirection and delay:
- Failing to return calls
- Repeatedly missing communication/notice deadlines
- Not answering the phone at all
- Asking for more information (which you may have already provided multiple times).
With these issues, it becomes clear the insurance company never intended to pay in the first place, which gives you the right to take them to court for bad faith.
Do I Need a Lawyer to Speak with My Insurance Company?
In a crash, you may seek damages from the at-fault driver’s insurance company if you had qualifying “serious injuries.” When that happens, you should be sure to have a lawyer – but do you need a lawyer when dealing with your own insurance company?
Ultimately, your insurance company does not have an obligation to look out for you or your best interests. The only duty they have is the duty of good faith, which in turn requires them to follow the terms of the contract.
This means that while they might be “on your side,” they are not your lawyers and are often looking out for themselves first. When you work with a New York car accident lawyer, we are obligated – ethically, legally, and contractually – to fight for you and for your best interests.
We can talk to your own insurance company for you and avoid any miscommunications or misunderstandings that might slow down your claim. We can send demand letters that lay out exactly what damages you need under your policy, and we can take them to court if they refuse to pay.
Suing Your Own Insurance Company in New York
When you file a lawsuit against your own insurance company, it may be based on simple breach of contract. This merely requires proof that they violated the terms, e.g., by failing to pay you money they owed.
You can also sue for insurance bad faith. This says they violated that good faith duty and never really meant to pay you from the outset. This requires more proof of serious wrongdoing, but there is often enough proof to bring a strong case.
When you win an insurance bad faith case, it can often result in full payment as well as punitive damages to punish the insurance company for how it treated you.
Call Our New York Car Accident and Bad Faith Insurance Lawyers Today
For a free case evaluation, call The Carrion Law Firm’s New York car accident attorneys at (718) 841-0083.