What Happens When an Insurance Claim Is Made Against You?
We’re all familiar with insurance and the multitude of different insurance claims that can be made, but what happens when an insurance claim is made against you?
Read on for a detailed overview.
Introduction
Getting into a car accident can be scary. But when damage is caused to another car or someone’s property, what happens if an insurance claim is made against you? Do you dispute it if you find yourself in this situation?
Let’s take a look at what you need to know about this situation – and how it can impact you in the future.
What Happens When an Insurance Claim Is Made Against You First?
Accidents happen every day. And, when they do, the other party may suffer damages or injuries as a result of your actions. Most of the time, these things require money to treat. If you are the one at fault, the other party has a right to file a claim against your insurance to receive those funds.
An insurance claim is considered a formal request for compensation.
First things first – when a claim is made against your insurance, you will be alerted by your insurance carrier. This is most often in the form of a written letter sent to your address. Within the letter, you will be asked whether or not the incident was your fault. If you say yes, then your insurance will move forward with paying the whole claim on your behalf because that’s what your insurance is there to do.
Types of Claims
Not all claims are created equal – and not all accidents/injuries are cut-and-dry. So, there are a few different types of claims, including the following:
At-fault claims. These are the claims that stem from accidents that were your fault. You know you were in the wrong here, and don’t dispute it.
Non-fault claims. If the other party is at fault, they shouldn’t file a claim against your insurance carrier. If anything, you should be making a claim against the other party’s insurance, and they should not dispute it.
Partial-fault claims. Sometimes, there is no one to fully blame for an accident. Both individuals may play a role in it, and both may be responsible for the damages. In this case, both insurance companies work together to determine the percentage of the damages each will carry. This could be 50/50 or 75/25, etc.
Disputing a Claim
If you have received written notice about an insurance claim made against you and want to dispute it, how do you do it?
It is possible that you may find yourself in this situation. Maybe you weren’t fully at fault, or maybe you weren’t at fault at all. Your insurance company is relying on you to fill them in on this information so that they can make the best decision when it comes to paying out claims.
If the claim is right or even partially right, then it is up to you to dispute it with your insurance company. You will have to prove that you weren’t at fault or that you are not solely responsible for the accident. Having a police report is often handy, too – especially if it backs your claim.
If you feel your insurance carrier is not fully supporting you or if you think that the other party could present with criminal accusations, hire an attorney immediately.
An Increase in Premiums?
If you have wondered what happens to your insurance once a claim is made, here’s what you need to know.
Sometimes a claim will be made that doesn’t get paid out. Other times, a claim will be made, and the insurance company will pay for the claim. Either way, when it is time for renewal, you may still find yourself paying a higher premium – or losing your insurance altogether – depending on one thing: how negligent they believe you to be as the policyholder. After all, if it wasn’t for your actions, a claim wouldn’t be filed, right?
Again, this is why it is important to prove your case and protect yourself. With the right attorney, you may be able to prove that it wasn’t your fault so the claim shouldn’t be filed against you.
Insurance premiums can be very expensive. The last thing you want is to see an increase – or a loss in coverage.
What If Someone Files a False Claim?
What’s worse than getting a claim filed with your insurance company? Having a false claim filed against you. But, unfortunately, it happens more than you might imagine.
If you find yourself in this situation, you will realize that it comes down to your word against theirs – so you have to prove the fraudulent claim. This is often a great time to hire an attorney to handle the fraudulent claim for you.
There are two main types of insurance fraud. The first one is when the car accident itself is fraudulent. For instance, if the car cuts in front of you and slams its brakes, you’d have nothing to do but hit them. And they know they can try to collect money from your insurance company.
Another type of fraudulent move includes an accident victim suddenly claiming they were injured badly when they said they were fine at the accident scene. They do this just to get money from the insurance company.
Having claims on your insurance can negatively impact you in the future. So, when they are false claims, it makes the situation that much worse. Do everything you can to prove the fraud and protect yourself with the help of an experienced attorney.
Protect Your Rights with an Attorney
A simple car accident could easily turn into something more devastating if your insurance premiums skyrocket or your insurance is canceled entirely. These results feel more painfully amplified if the claim is false or exaggerated.
To avoid what happens when an insurance claim is made against you, protect yourself with an experienced insurance attorney. Insurance companies work on your behalf but ultimately protect themselves and have a huge legal team to ensure that happens. Get an attorney who will look out for your best interest from the moment a questionable claim is filed.
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