Insurance companies are on your side, right? With slogans like "We're on the driver's side" many people are under the belief that insurance companies always act in their policyholders' best interests. While insurance companies do have this duty, they don't always follow through. You see, insurance companies are businesses much like a retail store or a restaurant. The more they give you, the less they get to keep. Insurance companies don't always act in bad faith, but knowing the following facts can help you have a healthy skepticism so your rights are not violated.
Your insurance company has a duty to act in good faith to you. This means that your insurance company must always act in your best interests rather than their own. Unfortunately, due to the vast amount of self-seeking insurance agencies, many policyholders get cheated out of money/coverage they actually deserve.
You have the right to know why your policy was canceled. This is something your insurance company is obligated to disclose to you. If you receive notice that your insurance company canceled your policy, they must provide you with a reason why, and this reason must be legitimate. Some reasons why your insurance company might cancel your coverage are for a DUI
You have the right to know how the adjuster determined your award. If you were involved in an accident and you notified your insurance company, they will assign your case to a claims adjuster. This adjuster will evaluate the details of your accident to see who was at fault and what each party is entitled to. If you receive your award back and it is less than you thought it should be, the insurance company must provide a reason for why they issued you the amount that they did.
You don't have to accept the first settlement offer. Many policyholders are not aware of the fact that they can ask for more money. If the insurance company comes to you with a settlement offer and you believe you could get more, you could ask them to re-open your case to see if there are additional areas of compensation available. Oftentimes, our Colorado Springs car accident attorneys are able to get our clients much more than what the insurance company first offered them.
You have the right to appeal their decision. If you have declined to accept the insurance company's first settlement offer but they are still not agreeing to provide the money you think you deserve, you have the right to formally appeal their decision. We believe that these formal appeals are best handled with the help of a law firm experienced in insurance bad faith and related cases. Clawson & Clawson, LLP is such a firm.