Not only it is illegal, having no car insurance coverage could put you in a very awkward situation if you are caught in an accident with nobody to turn to.
Auto insurance is a legal binding contract between you and your insurance company. If you are the victim, the law specifically mandates that you be indemnified. Assuming that you have lived up with this contract, and all the legal aspects ironed out – we see no point of your claim being denied.
Your claim may be denied if the insurer finds out that you have violated and committed illegal activities that have resulted in the collision. For instance, it is illegal for most states to use your mobile phone while driving. Granting that this law has not fully acted in your region, it pays to know that more states are passing similar laws to prohibit the use of mobile phones while operating a vehicle. Additionally, driving under the influence of drugs or alcohol and deliberately letting somebody to drive the car could invalidate your claim altogether.
In rare cases, wherein your insurer acts otherwise, and you honestly believed that they are just acting bad faith; it is your legal right to elevate your case to the authorities.
Should You Make An Appeal If Your Claim Has Been Denied?
Yes, I believe so. Your insurance agent has nothing to do with your denied claim so it is not appropriate to bring your anger towards him. Most likely, someone back in the office is responsible for the mistake, if you believe so. These are humans and certainly not foolproof. Start out by writing the insurance company regarding their decision. Cite proofs or documentation such as police reports to thwart the verdict. Most insurance companies have set of standard operating procedures when handling complaints and you may be required to fill out special forms. Talk to your insurance agent about this matter.
If you are not satisfied with the result of your appeal, you can file it to your state’s Insurance Commissioner. Apparently, their job is to protect the consumers like you and regulating the insurance industry as a whole.
Planning to Hire a Lawyer?
If you strongly believe that your insurance company is trying to deceive you, then you may consider seeking help from a lawyer specializing in auto insurance cases. If your insurance company continued to neglect your request or standing their ground that your claim is unsubstantial, you may file a lawsuit based on the grounds of bad faith, insurance code violations or breach of contact.
Filing a lawsuit is an expensive activity, and most lawyers will charge a hefty $250 per hour rate. Be sure you include these extra costs, such as attorney’s fee, when filing the case.
Do not wait for accidents to happen before understanding what is being covered and what is not. No matter how simple your questions are, clear it out with your insurance agent. Do not feel embarrassed because it is the job of your agent to make sure that you understood the terms before binding yourself to the contract.
