What Are My Rights as a Car Insurance Policyholder in California?
What Are My Rights as a Car Insurance Policyholder in California?
Posted on behalf of Arnold Law Firm
on January 18, 2021 in Auto Accident Updated on February 24, 2022
When you purchase an insurance policy, you are granted rights as a policyholder. California has more laws to protect insurance policyholders than any other state in the U.S.
Your insurance company must comply with these laws when you file a claim. The purpose of these laws is to help ensure you are treated fairly and not taken advantage of by the insurance company.
If you have been treated unfairly by your car insurance company after filing a claim, the Sacramento car accident lawyers at our firm know your rights and are prepared to help you secure a favorable settlement.
Acting in Good Faith
The representatives of your insurance policy, including the insurance claims adjuster, are legally required to be honest with you about your policy coverage and its limits. They must be accurate about their policies when they are selling them to you and honest during interactions with you after you sign as a policyholder, including claims.
Under California law, insurers are required to conduct a reasonable investigation into your claim and offer a fair settlement that is “in good faith to effectuate a fair, prompt and equitable” amount. California insurers are also not permitted to make an unreasonably low settlement offer that attempts to settle a claim for less than it is worth.
Unfortunately, not all insurers act in good faith. When insurance companies act in “bad faith,” they may be in violation of state law and could face serious consequences. Some insurers assume that policyholders do not know their rights, making it advantageous to have a knowledgeable attorney on your side.
Complete Communication
California insurance companies must provide policyholders with accurate, complete policy-related information. This includes disclosure of deadlines, such as California’s statute of limitations for filing a lawsuit.
Insurers in California are also legally obligated to communicate within a reasonable time. This means that an insurance claims adjuster may not ignore phone calls, emails or other forms of communication from a client for no reason. For certain requests, such as a copy of your current policy and policy history, the law states that the insurance company must comply within 15 days of your request.
Your Right to a Fair Claims Process
You have the right to a fair investigation and a fair claims process. The insurance company may not create barriers or unreasonable requirements for filing your claim, such as:
An insurer may not ignore evidence provided by you or your attorney, including photos or video of your injuries, damage to your vehicle, or the crash scene; police reports; or witness statements.
An insurer may not ask for unreasonable proof of loss, such as secondary proof.
An insurer may not require the exclusive use of their forms.
An insurer must provide a copy of every claim-related document in your file upon request.
It is important to note that a fair claims process also means the insurance company has the right to receive honest, accurate, and prompt statements from you when you file a claim.
Call a Knowledgeable Attorney for Legal Assistance
Too often, victims of car accidents are offered very small settlements or are taken advantage of in other ways by insurance companies. An experienced attorney can help hold the insurance company accountable and pursue maximum compensation to help you during this difficult time.
Have more questions about your rights? Call us today at (916) 777-7777
After a drunk driver hit me I wasn’t really sure what to do. A friend of mine Highly Recommended Arnold Law Firm, what a great recommendation it has been! The staff from lawyers to assistants has been nothing short of amazing. Always are calling and emailing me to update what is going on with your case. A very nerve racking thing to deal with personal injury and what comes from it. But with Arnold Law Firm you can rest knowing they are fighting for every inch for you. Need a law office? Look no further!
This firm is a joy to work with, they really care about their clients. Mr. Minney and Deena were wonderful to work with.
I am very grateful for the services I got from Arnold Law Firm! Everyone was great! Stephanie was awesome! Her dedication and perseverance were admirable! She was the person behind the success of my claim! I truly appreciate her in particular, and Arnold Law Firm staff, in general!
So far, we are very happy with Arnold Law Firm and the personal service we have received by Dominic Sandaval. We are looking forward to continuing this relationship through the remainder of our law suit.
Thank you, Gilbert and Joanne Joseph
Not just legal experts, The Arnold Law Firm and my case manager Stephanie Baffoni genuinely cares about you.
The Arnold Law Firm has a proven track record of success fighting for their clients and I am very thankful to have them supporting me during a very challenging time. What I did not expect is the level of compassion, partnership, and trust Stephanie and the team strives to achieve in what could have been a purely transactional relationship.If you want to be treated like a person, not a number, and know someone is looking out for your best interests, then look no further.