Q My wife and I were injured in an accident and our car required extensive repairs. The other party is to blame, but his insurance company is doing everything they can to wear us down and pay as little as possible. Is this allowed?
A The other driver’s insurance company has a duty to obey the law and honor their contract. The company’s first duty should be to its policyholders, and the company is at risk if it leaves him or her vulnerable to personal liability. In addition, there are certain steps that the insurer should follow. But there’s a real problem: it’s very difficult to find a viable basis to successfully sue the company for bad faith; some would say it’s practically impossible. After all, you do not have a contract with this carrier. And let’s be honest: the insurer wants to make a profit.
The strategy of stonewalling is not uncommon. The goal is to wear you down. Many fall victim to this tactic. So do you have a lawyer to support you and your wife? If not, I suggest you hire a qualified attorney and put your attorney in charge of the gnarly insurance company. If necessary, a lawsuit against the other driver may be advisable.
Q I was injured in a car accident. The other party has admitted liability. We’re settling accounts now and the insurance company sent me a printed release. I have to give up all known and unknown claims and I have to sign it to get the settlement check. Why doesn’t the other driver sign too?
A The other party has admitted liability and is making no claims, right? What can this party thereby release? However, if you are still concerned about signing a release for one party (i.e. only you sign to release the other side), find out if you can add their insured to the release, or consult a qualified attorney who will assess thing.
Insurance Department
That California Department of Insurance may be able to assist you in some cases with a poorly acting insurance company. Type “Get help – California Department of Insurance” in your web browser to read what’s available online.
Ron Socol has been a practicing attorney for more than 35 years and has also served many times as a judge, mediator and arbitrator. It is important to remember that this column is a summary of the law and should not be treated or considered as legal advice, much less as a substitute for actual advice from a qualified professional.
