Car insurance law is very complex, but very strict in most of the United States. Laws are designed to protect consumers and provide for safe roads and fair court settlements, and insurance companies that break these laws are subject to heavy fines, investigations, and other penalties. As such, it’s important to know your rights and what to expect from your car insurance company. This starts with knowing what to do if your insurer is breaking the law, either by violating your insurance contract or taking illegal action during or after a claim.
The first step is to be absolutely sure that your insurer is breaking the law. Decide what law is being broken, and collect as much information as possible (including any records of contact between you and your car insurance company) to back up your claim. If you’re not knowledgeable about car insurance law, don’t worry. You can contact your state insurance commission to ask questions about your state’s laws and regulations, and if you’ve got a particular instance of a possible illegal action, ask for advice. Most states operate an insurance law website that will advise you of your rights. Insurance companies must investigate and pay out claims in a timely manner, cannot deny or change coverage for handicapped individuals, and must provide suitable reasoning for changes in premiums. Different states have different regulations, but these are good basic concepts to understand when considering your legal claim.
If you know that your insurance company is acting illegally, the next step is to file a report with the state insurance commission. Again, the process for this will vary depending on the state that you live in. Generally, it’s as simple as contacting the insurance commissioner and asking to file a report. You may have to fill out basic paperwork explaining your complaint. Include the records that you’ve gathered to show support for your case, and resist the urge to contact your insurance company once the complaint has been filed.
The state commissioner will investigate your claim, and may leverage penalties against the insurer. If the insurance company has had repeated complaints over the same types of offenses, a full investigation will likely take place. Your complaint may take a while to resolve, but once it has been filed with the insurance commission, you don’t need to take any other steps. For serious offenses, speak with a lawyer for further advice. All insurance companies must follow the law, and when you make a relevant complaint, you’re helping the legal system work to properly regulate the auto insurance industry. Following these steps will keep you secured and insured.
