We seek insurance coverage because it has become a necessity in today's time. Fear of the unpredictable future compels us to safeguard our properties and family members against sudden fatalities. One of the prime mottos behind an insurance coverage is to seek great peace of mind against the risk of financial losses. While seeking car insurance rates, we barely worry about the car insurance company turning hostile during dire times. However, such situations can arise in the life of a policy holder. There might be instances when the car insurance company may resort to unfair treatment for some reason, especially after you file a claim for financial compensation.
Every state has laws governing the functioning of insurance companies. All the insurance companies are expected to abide by the law and indulge in fair business practices. Most state laws require insurance providers to explain the changes incorporated by them in the policy to existing policy holders. The insurance company cannot deny coverage by enforcing new laws after the claim is filed. Also, insurance companies should provide valid reason for denying a claim. Moreover, insurance companies cannot change car insurance rates as per their will and wish. All sorts of unfair treatment can be reported by the consumers.
A consumer can approach the State Department of Insurance to report a complaint against the insurance company. The State Department of Insurance has adequate staff and resources to attend consumer's complaints. They will register your complaint and look into the matter. One can also sue the insurance company for unfair treatment. You will have to hire an excellent lawyer in order to fight a good battle. Insurance companies have loads of wealth in their treasuries to offer a tough combat, which is why you need to seek a reputable lawyer with proper evidences to improve your chances of victory. An experienced lawyer will tell you the remedies and rights that you can consider when the car insurance company resorts to unfair business practices.
A policy holder cannot sue the insurance company for separate damages. However, if the insurance company is being investigated, it would offer you generous out of the court settlement. If there are many reports of unfair treatments filed against the insurance company, the department may cancel the company's license. The insurance company will have to shut down its business.
An insurance company is expected to resort to fair business practices. While seeking car insurance rates, consumers should be supplied with relevant information so that consumers do not feel cheated at a later stage. It's a must that you get adequate protection during dire times, so don't give up whenever the insurance company turns to unfair practices.