After a car accident, you expect your insurance company to assist you in fixing your automobile swiftly. Unfortunately, insurance companies do not behave in your best interest and leave you wondering, Can I sue the insurance company for not fixing my car?
Check your insurance coverage to see if it covers your claim. You may not have a case if your insurance doesn’t cover car damage. You may have grounds for a lawsuit if your policy covers the damages and the insurance company refuses to pay.
Second, determine whether the insurance company behaved in bad faith or failed to meet their contractual duties to you reasonably and on time. The insurance company may have behaved in bad faith if they purposefully delayed the repair procedure or refused your claim without a reasonable justification.
Thirdly, acquire evidence to support your case. This includes insurance company correspondence, car damage evidence, and repair estimates. Keep account of any expenses incurred due to the delay in getting your automobile fixed, such as rental car fees or missed work.
Finally, choose a lawyer that specializes in insurance claims. A lawyer can safeguard your rights and help you through the legal system. They can also assist you in negotiating with the insurance company to get the amount you deserve.
Can I sue insurance company for not fixing my car | Can my insurance company refuse to fix my car?
If your car is lost, your insurance company can prohibit repairs. Here are a few reasons an insurance company may refuse repairs:
The insurance company will likely consider the vehicle a total loss if repairs surpass its cash worth, so they’ll pay the ACV instead of repair charges.
The insurance adjuster’s assessment and cost estimate determine whether a vehicle is repairable or a total loss.
You can challenge their total loss assessment and give your own repair quote from a respected company. However, they can decline repairs if their estimate exceeds ACV.
The insurance company might declare the car a total loss if structural or mechanical damage makes it dangerous to fix and drive.
Texas does not have a percentage requirement for a total loss, unlike several states (75% of value.
If their overall loss valuation looks low, you can negotiate a settlement. If you can’t agree on a price, they can refuse repairs.
What grounds are for suing an insurance company for not fixing your car?
When your car is damaged, car accidents can be stressful and overwhelming. Most car owners use their insurance to pay for repairs. What happens if your insurance provider refuses to fix your car? Can you sue?
1. Breach of Contract
Breach of contract is the most typical reason to sue an insurance provider. You sign a contract with the insurance provider when you buy a policy. The contract specifies what is and what is not covered by the policy. The contract is breached if your insurance provider doesn’t pay for covered repairs. You can sue for breach of contract in this scenario.
2. Bad Faith
Suing an insurance company for bad faith is another cause. Insurance firms must act in good faith when dealing with policyholders. This requires timely, fair, and honest claims handling. If your insurance company delays or denies your claim without a good reason, they may behave in bad faith. You can sue for bad faith in this scenario.
You can sue your insurance provider for negligence if they didn’t investigate your claim or pay a fair amount for repairs. Insurance firms must act appropriately when addressing claims for their policyholders. If they don’t, they’re negligent.
Insurance companies may deceive policyholders by misrepresenting policy conditions or concealing facts. You can sue your insurer for fraud if you suspect it. It’s hard to prove fraud, so you’ll need solid evidence.
What steps should you take before considering suing your insurance company?
1. Understand Your Policy
Reading the insurance policy is the first step in filing a claim. It will assist you in determining if your insurer is acting in bad faith or if your claim is legitimate. If you have policy coverage questions, contact your agent.
2. Document All
You must document everything connected to your insurance claim when using your insurer. Keep copies of all insurance company correspondence, including emails, letters, and phone calls. Take pictures of any damage and keep receipts for claim-related expenses. This will help you sue your insurer.
3. File a Complaint with Your State Insurance Department
Complaint to your state’s insurance department before taking legal action. Most states have a department that regulates insurance businesses and handles customer complaints. They can investigate your claim and help you and your insurance reach a settlement.
4. Consider Arbitration or Mediation
Mediation or arbitration may be less expensive and time-consuming than suing your insurance carrier. Many insurance policies feature alternative dispute resolution, which can help resolve issues outside court. This may be a viable alternative if you want your claim resolved faster.
5. Employ a Lawyer
You may need an attorney if your insurer is operating in bad faith after exhausting all other options. You can navigate the legal system and establish a compelling case against your insurer with the help of an insurance law attorney. They can also help you settle or represent you in court.
What kind of compensation can you expect if you successfully sue your insurance company for not fixing your car?
If you win a lawsuit against your insurance carrier for not fixing your car, you may be entitled to:
1. Damages and repairs
You can sue if your insurance company didn’t fix your car after an accident. The amount of compensation depends on the damage and repair costs. You’ll need receipts, invoices, and mechanic estimates to prove the damage and repair expenses.
2. Loss of use
You may be eligible for compensation for lost use if your car was in the shop for a long time. You could not utilise your car, which caused you hardship and financial losses. The length of the repair and the cost of hiring a car will determine compensation.
3. Diminished value
Your car’s market value may have dropped after an accident, even after repairs. You may be compensated for diminished value. Your car’s pre- and post-accident market value will determine compensation.
4. Lawyer fees
If you sue your insurance company, you may get legal expenses. This covers court fees, lawyer fees, and other legal costs. You’ll need to prove that the legal fees were fair and essential.