QuestionQUESTION: 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.
ANSWER: Hi Dipesh,
You should immediately file a complaint with the NY state insurance department.
The insurance policy is a contract between you and the insurance company. The rental company has a claim against you. If your insurance company does not pay the claim, the rental company can sue you personally as they have done. Part of your insurance policy states that they will provide you with a defence if you are sued in relation to an auto accident. Once you are sued, you have 30 - 45 days to file a response to the suit. This means that your insurance comapny should have hired you an attorney who needs to file the response. If they do not file the response you must do so on your own. You will need to hire an attorney to answer the suit. You will also want to hire an attorney that specializes in suing insurance comapnies for bad faith claim handling. Then you will file a suit against your insurance company for Bad Faith & Breach of Contract. Depending on the situation, that suit could be worth several hundred thousand dollars to several million dollars.
You need to take action on this as soon as possible. File the insurance department complaint on Monday and then start looking for your own attorney so you have one in place if it becomes necessary to hire one.
I hope this helps
Richard Hixenbaugh
---------- FOLLOW-UP ----------
QUESTION: Richard,
Thank you very much!
The suit document has the claim amount incorrect i.e. did not consider the deductible that my credit card paid AVIS. Moreover there are no other specific amount mentioned other than Attorney fees, Interest, late Payment Penalty etc. No due date has also being mentioned.
Then document is such casual but being naive I don't know much about this. Can such incorrect document held valid ion court of law?
What response is necessary from my personal attorney if I have my own attorney? Will that help me buy time?
What will happen after complaining to NY department of Insurance?
AnswerHi Dipesh,
Yes. You should have an atttorney. He will need to file an answer to the suit. The attorney will know how to answer showing all of the issues you discussed. You should speak to your attorney about these issues so he/she is aware of them.
I hope this helps
Richard Hixenbaugh
