Auto insurance policies provide a somewhat straightforward service. Florida drivers purchase a policy, and the insurance company assumes the risk. So, if a policy covers someone for $500,000 in liability, the provider finds itself locked into paying up to that amount when the covered driver causes an accident. However, the insurance company could dispute that its customer was at fault. In such situations, the insurance company may refuse to pay.
Negligence and insurance coverage
Auto liability insurance covers losses caused by someone negligent. A person taking to the roads while intoxicated commits negligent behavior since drunk driving is illegal and reckless. If an intoxicated driver goes through a red light and hits a car that committed no moving violations, the drunk driver’s insurer would have a challenging time challenging fault. Other instances are not so clear.
What if the insurance company claims another driver, bicyclist, or pedestrian was at fault for the accident? If the insurance company proves its client did nothing wrong, then it would not likely need to pay. However, some instances might be “gray area” ones. That is, evidence may suggest the insurance company’s client is negligent, but the insurance company counters the claim. A lawsuit might become necessary to force the insurer to pay.
Insurance company controversies
Car insurance disputes may even involve the provider’s client. The insurer could refuse to pay, and the client may sue for bad faith. Claiming the client lied on an insurance application when he or she did not may reflect an example of an insurer’s improper actions.
And there’s the potential the insurance company may downplay damages and low-ball settlements. Such actions may also lead to a lawsuit.
Anyone struggling to deal with an insurance company could meet with an attorney. The attorney may take over all negotiations with the insurance provider.