Question"Policy Effective: 11/30/2008
Policy Canceled (Insured Request): 2/11/2009
Date of Loss: 1/19/2009 (all coverage was active at this time)
Claim filed: 01/19/2009.
I was insured by the dealer when I bought my car from them.
I rented a car from AVIS 2/1/2009 since my car was taken for an oil change at the dealership. The rental was through the car dealer. I did not sign the CDW coverage with AVIS assuming that my insurance company will cover.
It suddenly snowed that day. I got into an accident when my car slid on small bridge and hit the guard rails.
I filed a claim with Country Wide Insurance NY. My insurer.
I was asked to send in all paperwork 4/15/2009. I sent them all the paperwork they asked EOD 4/15/2009. Yes, it took them this long to respond.
Even after multiple follow-ups with the adjuster/examiner by AVIS adjuster and me, the company has not taken any steps until today 7/11/2009. I have now received suit papers from AVIS attorney to pay the claim and other related late fees, attorney fees and interest etc.
The car was deemed a total loss and $10,500 was charged as the claim amount.
We faxed the suit papers and called the ADJUSTER & LITIGATION DEPARTMENT at Countrywide but they are so irresponsible about their response back to us. They keep telling that they're looking at the claim still. They will handle the suit etc but no definitive answer.
My date served is 6/30/2009 which leaves me until 8/4/2009 to act (35 days).
1. What should I do in such case where insurance company has not taken action on a claim for 7 months now.
2. Will they handle the suit.
3. What if they don't pay. What are my options then.
4. What precautions should I take?
5. They have not sent a letter of denial. Can I approach department of Insurance. This is NY state.
AnswerHi Dipesh,
There are discrepancies in the dates stated in your question
that require clarity. Without clarity, I can only answer
your questions based on assumptions.
You wrote:
***************
"Policy Effective: 11/30/2008
Policy Canceled (Insured Request): 2/11/2009
Date of Loss: 1/19/2009 (all coverage was active at this time)
Claim filed: 01/19/2009.
"I rented a car from AVIS 2/1/2009 since my car was taken for an oil change at the dealership." "It suddenly snowed that day. I got into an accident when my car slid on small bridge and hit the guard rails."
**************
Unless you made a typographical error, the rental date just
doesn't match with the date of the accident.
I an assuming that there is a typo and all your questions are
concerning the date of loss of 1/19/2009.
Your questions:
"1. What should I do in such case where insurance company has not taken action on a claim for 7 months now.
2. Will they handle the suit.
3. What if they don't pay. What are my options then.
4. What precautions should I take?
5. They have not sent a letter of denial. Can I approach department of Insurance. This is NY state."
Answers:
1.) This should have not drug out this long. You should have called
the NY Department of Insurance six months ago. Nationwide Ins
is guilty of "bad faith" insurance practices by not handling this claim in a timely manner.
2.) Since I have not read your Nationwide policy nor the rental
agreement with Avis, I can't supply a definitive answer. Most
rental agency's have a clause in their agreement that if you should wreck their automobile, in additional to being responsible for the
damages, you are also responsible for the loss of their rental
income from that vehicle until it's repaired or the claim is
settled. If that clause exists and you purchase their CDW, then
it covers the loss of their rental income. If Nationwide does decide to cover the loss, they will NOT cover the loss of income to the rental agency.
3.) If Countrywide decides to not pay, you must have them supply
you their reasons in writing. You can then take that response,
your policy, and the Avis rental to the department of Ins for help.
4.) Since nationwide has not yet paid the claim, it is clear to
me that they are searching for a way to deny it. If they find
a way to deny one minute before the court date, they will do so,
leaving you "high & dry" to deal with the court even though you
haven't even retained an attorney. Assuming that you haven't
already retained an attorney, you can protect yourself by:
5.) Immediately filing a complaint with the New York Department
of Insurance. In most states, the department of insurance
can NOT assist you if you have retained an attorney. If you
receive a denial from Countrywide, immediately notify the N.Y.
department of insurance.
I hope that you find this information helpful. Your feed back
by rating my response will be appreciated.
Bennie
San Francisco Bay Area
