Expert: Ron Cercone - 6/6/2009

Question
QUESTION: Hi,

In March 2009, I was out of town and my car was stolen while parked on my drive way and it was involved in a serious accident.  When I came back I spoke with police, did a report and followed all the steps that was necessary.  My car was declared a write off so I contacted my insurance company to file a claim.  It's been almost 3 months now and the insurance company is still stalling and it seems like they don't want to pay.  The car was financed so I am still making payments till this day.  They told me they think I'm lying and something seems suspicious therefore that is the reason why it's taking so long.  But I'm thinking to myself how am I still making payments on a car I don't have to drive? Can you please help and let me know what are my legal rights and what I can do in a situation like this, thanks.

ANSWER: Hello Kelvin,

In most areas, the insurer has a certain amount of time, legally, to deny or pay a claim. However also in most areas, the insurer can get an extension of that time just by telling the state/province Department of Insurance that they are still investigating. Eventually they have to give you a determination, in writing.

If there was not enough evidence for the police to arrest you, then the same should apply to the insurance claim. The insurer's investigator should have been done in a couple of weeks. They may be using their favorite tactic and unfair claim practice - Delay.

As to the payments on the car, look at your loan papers and read the clause about total loss to the vehicle. And check with an attorney to see what the law is on this in your area. You can also view typical claims laws and ebooks on this at the product page, Miscellaneous, at UClaim.com.

---------- FOLLOW-UP ----------

QUESTION: so how much longer do you think I should wait before I take legal action? and also what type of lawyer should I be looking for that would handle this type of situation?

Answer
Kelvin,

Either you or your attorney need to start "building a file, or a 'case' if you will" before you even think about "filing a lawsuit". If you ever get to trial in court, you will need evidence. Have you written letters to the insurance company asking for a status, and the insurer has not responded within the legal time limit, or not responded at all? Find out what the fair claims practices laws are in your area, and document how they have been broken. Document how your policy contract has been broken by your insurer. Document how your insurer has acted unreasonably. Its not enough to just walk into court and tell your story with no evidence.

The more you build your file and the insurer sees you are building a file, the more incentive your insurer has to settle your claim before there is a lawsuit filed or a court trial after a lawsuit is filed. 95% of all lawsuits filed are settled before the trial, sometimes the day before. The UClaim.com eBooks show you how to document your claim. While some people may say the techniques in these guides "set up" 'the poor insurance company', the fact is that no one person or company can be "set up" if they are not already breaking the law. My mentor once told me "give an insurance company enough rope and they will hang themselves".

Most lawyers in the USA would not take your case on contingency, and in most cases, it is not economical to pay a lawyer on an hourly basis. If your case has potential for unlimited "punitive damages" in your jurisdiction, then a lawyer might take it. Currently in the USA, punitive damages are limited to 3 to 10 times the actual damages (which is nothing). That has pretty much put a stop to lawyers taking "bad faith" lawsuits in the USA.

You want a lawyer who does not routinely represent insurance companies. You want a plaintiffs lawyer, like an accident lawyer.