Whether you’re injured from or at fault for a car accident, auto insurance should safeguard you and your family. Your car insurance company is obligated to treat you in good faith when it handles your claim. However, your insurance company may engage in unfair claims practices that hinder your ability to move forward after an accident.
As personal injury attorneys, we are here to help you understand the Missouri laws for unfair claims practices — if you believe your auto insurance company has treated you unfairly.
Defining Unfair Claims Practices
An unfair claims practice can occur when your insurance company tries to delay, avoid or reduce the size of a claim due to be paid out to you as the insured. When you are seeking payment from your own insurance company for injuries from a car accident, you are making a “first-party claim.”
For example, when you are in a car accident and the driver who hits you does not have enough insurance to compensate you for your injuries, you could make a claim for underinsured motorist benefits on your own insurance policy. If your insurance company extensively delays or unreasonably denies your claim after receiving sufficient supporting documentation, you may be able to file a lawsuit against your insurance company for vexatious refusal to pay for your damages, and seek compensation for the insurer’s unfair claims practices.
Explaining Missouri’s Unfair Claims Practice Laws
The Missouri Unfair Claims Settlement Practices Act (MO. Rev. Stat. §§ 375.1000 to 375.1018) outlines the standards for investigating and settling claims under an insurance contract. As personal injury attorneys, we have seen a variety of unfair practices that insurance companies will use to delay or deny your claim.
The Unfair Claims Settlement Practices Act act outlines 15 improper claims practices that if committed by an insurer may support a claim for vexatious refusal to pay a claim. Among the 15 listed practices, these are seven of the most prevalent tactics:
1. Failing to Provide a Reason for a Denied Claim.
If an auto insurance company denies a claim, it should provide a reason for the denial. However, this does not always happen. Claim denials may occur after adjuster misinterpretation, insurance agent negligence or other errors, but the denial must be justifiable – if it is not, it can be a sign of an unfair claims practice.
2. Attempting to Settle for Less than What is Reasonably Expected.
Insurance companies may offer a lower settlement than is reasonable for the circumstances. An insurance company has a duty to negotiate in good faith and if it doesn’t, it can be sued and end up paying penalties that could allow you to recover more than your policy limits.
3. Conducting an Inadequate Investigation.
An insurance company has a duty to reasonably investigate claims brought to them by an insured. If the company does not conduct a prompt and thorough investigation and it leads to a delay or poor outcome, you may have ground for a lawsuit against your own insurance company.
4. Delaying a Decision or Payment.
The investigation, negotiation and settlement of a claim must occur within a reasonable amount of time. Delayed decisions may affect the choices available to you following a car or trucking accident, especially if the accident involves a catastrophic injury. If an insurance company delays investigating or settling your claim, you may be able to file a lawsuit for the an unfair claims practice.
5. Failing to Pay for a Valid Claim.
After submitting a claim to an insurance company, it will require evidence to help it during the claim review process. Typically, evidence includes details of the accident, contact information for all involved, the extent of injuries and possibly an estimated cost of the damage to your vehicle. If you filed a claim that was clearly covered within your policy limits and insurance refused to pay, the insurance company may be liable for its unfair claims practices.
6. Refusing to Provide Documentation.
Insurance companies should provide you with adequate updates about your claim and respond to your reasonable requests for documentation. These requests may include those for a copy of insurance policy details, coverage documents and other information about why your claim payment is delayed or denied. If the company does not comply with your request, it may be time to file a lawsuit with an experienced attorney.
7. Misrepresenting the Language of Policies and Records.
Misrepresentations of the law or policy language by an adjuster may be a sign that your insurance company is not acting justly. Insurance companies have a duty to act in good faith in adjusting your insurance claim. An insurance company cannot make false statements about the law or the coverage available to you under your policy. If your insurance company is making untrue statements about facts or the law related to your claim or misleading you about the benefits available to you under your own policy the company may be committing unfair claims practices.
Preparing to Make a Claim for Unfair Claims Practices
If you believe your insurance company acted unfairly, you do not have to accept the company’s actions or its positions related to your claim. An attorney will be able to help you properly file a vexatious refusal claim for an unfair claims practice by:
- Reviewing your insurance contract.
- Gathering relevant evidence to support that the company acted improperly.
- Writing and sending a demand letter to the company about your claim.
- Filing a complaint with your state’s department of insurance.
- Building a lawsuit with an attorney if the company does not comply or respond.
An experienced attorney will be able to help you as you recover from both the accident and the issues with your insurance company.
Move Forward with MHM
A car accident can leave any person rattled and wondering what will happen next after a serious injury. The recovery process is difficult enough — complications with an insurance company should not be another roadblock to your recovery. As you focus on moving forward, let a member of our legal team help you obtain justice from the company that wronged you.
If you see signs of your insurance company acting unfairly after submitting a claim for a car accident, contact one of our attorneys to plan your next steps.