Being Aware of the Situation
Sometimes it’s easy to forget that car insurance companies are not obligated to pay out claims simply because they have accepted a policy. Many drivers who find themselves unexpectedly at odds with their car insurance company over a claim come to the conclusion that the company is purposely stalling or even delaying payment for as long as possible. If you are dealing with such a situation, it is imperative to remember that the insurance company is looking out for its own interests and not yours.
The first step to take if you feel you are dealing with a car insurance company that is stalling the payment of your claim is to gather as much documentation as you can that proves the details of the incident. This includes, but is not limited to, pictures of any damage done to the vehicle, police reports, medic reports, and witness statements. Once you have gathered all of this, it’s important to remain calm.
Writing A Complaint and Seeking Help
Writing a complaint and seeking help is a crucial step to take if you are encountering any resistance from your car insurance company. Write a strongly worded letter to your car insurance company outlining the details of the incident, any relevant documents you have collected and your request for compensation. Make sure to keep copies of all documents sent and received in case of legal action down the line.
It is also beneficial to seek help from organizations such as the Insurance Council of Australia (ICA) or the Financial Ombudsman Service (FOS). The ICA is a member-based mutual company comprised of Australia’s leading insurers. The FOS provides a formal dispute resolution process for policies written by banks, insurance companies and authorized non-bank lenders.
Pursuing Legal Action
It is important to remember that if the insurance company is not responding to your requests, or you’re not satisfied with their response, then you can take the case to court. It is recommended to hire a lawyer that specializes in insurance law to guide you through the process and make sure all your legal rights are being respected. A lawsuit should be considered a last resort, as it can be a long and expensive process. Furthermore, make sure you understand the terms and conditions of your insurance policy before taking any legal action.
While it is unfortunate to encounter a car insurance company that appears to be stalling your claim, it is important to remember that you have the legal grounds to take action. Make sure to take all the necessary steps to ensure that your legal rights are respected and that you are receiving the financial compensation that is owed to you.
Actions to Take if Found At Fault
If you are found to be at fault for an accident, you may want to consider the following steps: Speak with the at fault driver’s insurer to ensure your claim is being handled properly; check if the at fault driver has insurance coverage for the type of damage you have suffered; file a claim with your insurance company if no other insurance coverage is available.
It is important to remember that even if you are found to be at fault for an accident, the other driver may still have a case against you. Make sure to check your policy for coverage for any liability you may have. If you do not have coverage for the other driver’s damages, speak to a lawyer for legal advice on the best steps to take.
Reviewing Your Claim Status
After filing a claim, it is helpful to take a proactive approach when it comes to staying on top of the status of your claim. By regularly contacting your insurer with specific details and questions about the claim, you can ensure that any delays are quickly addressed. You can also periodically contact other parties involved in the claim such as witnesses, repair shops etc., to ensure they are submitting relevant information and that their files are up to date.
Some car insurance companies also offer online portals that allow customers to review their claims. These portals can provide up-to-date information on the status of the claim as well as estimated time frames surrounding the processing and payment of a claim.
Seeking Alternative Solutions
If all other options have been exhausted and you still find yourself in an unsatisfactory situation with your car insurance company, you can consider paying for repairs out of your own pocket or seeking credit from an outside lender. Called a gap loan, this type of credit can help you cover any shortfalls in the payment of your claim, although you should take into consideration any interest and additional fees that may be added.
For other, more serious cases, you may want to speak to a legal representative with expertise in insurance law. These lawyers are specialized in helping clients achieve better outcomes when dealing with car insurance companies.
