Car accidents leave many victims in devastating circumstances. While many victims have good faith that the insurance company of the liable party or their own insurance company will abide by a policy’s terms and compensate the victim according to his or her injuries, this does not always happen. Insurance policies are treated as a contract between the insured and insurer. In situations where the insurance company does not act in “good faith” and honor the policy’s terms in a fair, reasonable, and prompt manner, “bad faith” may be at hand.
Some common examples of an insurance company acting in bad faith include the following:
In these cases, it may be possible to sue your own insurance company for “bad faith.”
While victims of car accidents typically try to sue the at-fault party’s insurance, there may be other situations. The victim may need to sue their own insurance company. If the other driver does not have insurance coverage at all, this can happen. It can also occur if the driver does not have enough to cover your damages. If you have underinsured or uninsured motorist coverage (UM coverage), this applies. Your insurance company must abide by your policy and pay out the damages. This depends on your policy’s limits.
Because Florida’s insurance requirements are lower compared to other states, car accident victims may find themselves in this situation more often than not. Florida follows a no-fault system, in which each driver’s insurance company pays for medical bills and property damages–up to a certain amount–regardless of fault.
Drivers in Florida must carry a minimum of $10,000 in personal injury protection (PIP), which can cover up to 80 percent of medical expenses and 60 percent of lost wages. Property damage liability (PDL) also has a $10,000 minimum requirement. These two coverages and the amounts are the minimum requirements for Florida drivers. However, because accidents can easily result in damages exceeding this amount—especially with medical bills and vehicle damage—many drivers find themselves short of the amount needed to cover the accident-related costs.
While drivers may opt to carry bodily injury liability insurance (BDL), Florida does not require drivers to carry this type of insurance, which covers the medical bills of others in the event that a driver’s negligence causes injuries to other people.
After an accident, regardless of fault, it is critical to report the accident to your insurance company. Be sure to stick to the facts when reporting the accident and avoid speculating about the cause of the accident. Never admit fault. The insurance company will use its own process to determine fault, which includes the police report, any traffic tickets issued, statements from drivers and witnesses, and any other documentation, such as pictures and videos. The insurance company will use this information to investigate the accident and make a determination about fault.
Your insurance policy will be crucial in understanding whether the company is violating any clauses regarding your claim. An experienced car accident attorney is in the best position to advise you on the specifics of your policy, so you can understand what claims and legal options you have regarding whether or not your insurance company has breached your contract.
If your insurance company is not honoring the policy and should be covering a portion of your medical bills and/or property damage, it is important to keep careful documentation of your claim.
Here are some important items to document:
An experienced car accident attorney has the legal expertise to negotiate on your behalf. When your insurance company does not honor the terms of the policy, consulting with a car accident attorney is crucial. Attorneys will often attempt to settle the dispute with the insurer directly. They may assist you in gathering evidence and going through the legal steps. If necessary, they can also help with filing a lawsuit. Car accidents are stressful enough without an insurance company making unreasonable determinations that may financially and emotionally impact you.
Damages in bad faith cases may include compensatory damages, which are the amounts the insurance company fairly owes you based on your policy. These may also include legal fees and costs. In some cases, punitive damages may be awarded. Punitive damages are meant to punish the defendant for egregious and harmful behavior and serve as a deterrent to prevent similar actions in the future.
Because insurance companies have their own attorneys and resources, it is best to consult with an attorney to help defend your rights and ensure a successful claim.
“Bad faith” cases, like other personal injury cases, have time limits for filing a lawsuit. While personal injury cases in Florida have a two-year statute of limitations, “bad faith” legal claims have up to five years from the date the claim was denied or offered a low settlement. If you are unsure whether your case falls within the statute of limitations, consult an experienced attorney to discuss your situation.
At Clayton Trial Lawyers, LP (CTL), we understand how challenging it can be to navigate Florida’s insurance system after an accident. Our team is dedicated to helping you get the compensation you deserve.
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If you believe you’ve been treated unfairly by your insurance company, contact Clayton Trial Lawyers today for a free consultation. We are here to fight for your rights and help you navigate this challenging process.
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