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When you pay your car insurance company money each month, you expect them to protect you against financial burden if you get into an accident, according to the terms and exclusions listed in your policy.
Unfortunately, if your insurance company believes that you misrepresented a claim or committed insurance fraud, you may find yourself involved in a lawsuit with your own insurance company.
During the lawsuit process, your current coverage may still be valid.
However, you will want to use an auto insurance comparison tool to help you find an affordable policy with a different carrier that you can rely on in the future to protect you if you are involved in another car accident.
Compare car insurance quotes by using our free rate tool above. Just enter your zip code to begin.
Reasons Your Car Insurance Company Might Sue You
While it is rare to get sued by your car insurance company, there are several reasons this may occur. Many of them typically revolve around insurance fraud, which is estimated to cost upwards of 40 billion dollars each year.
- You deliberately caused a car accident.
- You falsified documents in an attempt to get more money.
- You reported your car stolen or missing when you knew its location.
- You let someone not listed on your policy drive your car, and they got into an accident.
- You misrepresented yourself to your insurance company when filing a claim.
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How to Avoid Getting Sued by an Insurance Company
When conducting business with an insurance company, it is important to always be as honest as possible with all of your communications and the information you provide.
– Maintain Honesty and Integrity When Completing Car Insurance Applications
When you are filling out your insurance application to attain new insurance, always provide truthful information. If you don’t know something, like your driving history or the number of claims you’ve filed over the last few years, look up the information before submitting it.
If your insurance company suspects you’ve committed fraud by lying on your application, they can cancel your insurance.
– Be Honest When Filing a Claim for Damages
If you are filing a claim, make sure you are being truthful about the causes of the accident and what you were doing at the time of the accident. When reporting the damage to your vehicle, help yourself by taking pictures of the damage to your car and the other driver’s car.
This can help you avoid being sued for insurance fraud and help thwart the other driver if they plan to commit insurance fraud against you or your insurance company.
– Accurately Represent Your Injuries
If you were injured during the accident, it is best to see a medical professional or visit the emergency room shortly after the accident to get evaluated. This will give you the documentation you need to accurately prove your injuries.
– The Importance of Gathering and Presenting the Facts
By documenting and gathering all the facts surrounding your insurance claim, you are reducing your risk of getting sued by your insurance company, and if you do get sued, you have the documentation you need to accurately present your side of the case.
What to Do When You’ve Been Sued by a Car Insurance Company
If you find yourself getting sued by your insurance company after you’ve submitted a valid claim for damages, you may not want to continue to do business with that insurance carrier.
Thankfully, you can quickly find a new car insurance policy with a new carrier by using a car insurance comparison tool to locate new, more affordable car insurance with companies that offer better customer service.
Once you realize you have been sued by your car insurance company, you may want to seriously consider contacting a lawyer that specializes in insurance fraud cases.
While your insurance company will represent you if you get sued by another driver, they will not represent you or financially protect you if they are suing you for damages related to a fraudulent claim.
The downside of being sued by your car insurance carrier is that you will have to pay the legal fees and any potential settlement amount, but you may be able to avoid serious consequences, like jail time and a felony on your record.
Persevering After Being Sued by Your Car Insurance Company
You can persevere after being sued by your car insurance company and find affordable car insurance with a better carrier.
To find a new policy quickly so that you can cancel your old policy, all you have to do is accurately input your information into a car insurance comparison tool, get the results and choose your new policy with a different carrier.
Compare car insurance quotes right here by using our free rate tool below.