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What Are My Rights as a Car Insurance Policyholder in California?

Posted on behalf of Arnold Law Firm in
insurance policyWhen 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

Settlement - $3,767,000

Truck Accident

A 20-year-old man who had been married for just 12 days left home on his way to work. He was driving on Pleasant Grove Road in Sutter County in the early morning when he came upon a slow-moving truck. As he pulled out to pass the truck, the truck driver turned left in front of him. The young man attempted to steer back into his lane but his vehicle struck an un-flagged piece of metal extending from the back of the truck. He died in the resulting crash.

Expert witnesses brought in by the Arnold Law Firm proved that the truck, owned and operated by a hauling firm, should never have been on the highway that morning. Specifically, the rear and side turn signals did not work and the rear-view mirror was in a poor state of adjustment at the time of the collision. As a result, the driver, who had failed to properly inspect the vehicle before setting out that morning, couldn’t see the young man’s vehicle as it attempted to pass.

The poor condition of the truck, its lack of maintenance and the manner in which it was operated were found to be substantial factors in causing the collision that killed the young man. The testimony also established that the man had been making a lawful pass at the lawful speed limit and acted reasonably when he attempted to avoid the collision.

The man’s 20-year-old widow was awarded $3,767,000.77, his parents were awarded $185,131 and the family was reimbursed $11,899 in funeral expenses. Though money is a poor substitute for a young man’s life, this verdict demonstrates that drivers who endanger the lives of others will be held accountable for their actions.