It is not unreasonable for individuals to have concerns about lawsuits. Many believe that if they have some vehicle incidents that they may be liable. It is in regards to a collision that may include personal or property damage. When it comes to vehicle car insurance lawsuits, it is usually the other way around. The individual has to lay the lawsuit.
Suing Your Insurance Company
Drivers buy car insurance for two reasons. One is because it is mandatory in Canada. Second is because it protects them financially against lawsuits. The process of being able to do this is by submitting an insurance claim. But there are times when the insurance company may not pay a claim. The common claims are those made for accident benefits. It is in this area where a lot of discrepancies can take place. The insurance company may not pay what the insured feels they should. When this happens, then the insured has to hire a lawyer. A lawyer will then sue the insurance company.
Claims For Law Suits
There are many different components that make up an insurance claim for vehicle insurance. There are the claims involving the repair or replacement of the vehicle. Then there are personal injury claims or property claims.
When a personal injury occurs, there can be many other costs associated with this. An injured individual may not be able to work and will lose income because of this. The person may need extra health care. There may be extra medical costs not covered by health insurance. There can be the stress that comes with an injury that creates pain and suffering. These all are factors considered in a claim when an accident involves an injury. It can be an injury to the driver themselves, their passengers or those in the other vehicle.
The insurance company is going to research the accident claim in a careful manner. They need to determine who is at fault and what percentage of fault they are at. This helps to determine whose insurance handles the payment of the claims. But, the insurance company will be the one that pays each driver’s claims. It is the case no matter who was at fault. The reason they want to know the percentage of fault is for premium purposes. An individual may not be at fault. It so their insurance premiums should not increase. But, if there is a percentage of fault or 100% at fault, then this is going to affect the driver’s premiums.
If the driver is not happy with the claims process, or claim payout they do have some options. Options that are available before taking the Insurance Company to court. Many times the discrepancies are in regards to the liability insurance.
There is the insurance Ombudsman who will review complaints. They will review the complaint and discrepancies. Then they will make recommendations. It may still not be satisfactory.
The next step may be for arbitration. Arbitration can be binding and would only likely go to the courts for appeal if necessary.
With the personal injury, there is a mediation process. If this is not satisfactory, then a court action is an option against the insurance company. Or this too can be arbitrated through the Financial Insurance Services Commision of Ontario. If one is dealing with this issue in Ontario. Every province has their own rules and regulations. When it comes to insurance and lawsuits.
Another Driver Lays a Law Suit
The reason people have vehicle insurance is to protect them. It protects their financial obligations in a vehicle accident. Plus financial costs related to the accident. As a well as for other types of coverage. It is important that when an accident occurs that a driver reports it to their insurance company. Even if there is no claim made.
There are times when another driver may attempt to sue a driver involved in an accident. When this happens the driver sued must inform their insurance company right away. The insurance company will then take control of the situation. They will provide the necessary lawyers and deal with the court actions. But they will only cover the cost of the settlement up to the amount of insurance coverage. If the settlement goes beyond this amount, then the driver is going to be liable for this. It is the most important reason why every individual must make sure they have adequate insurance coverage.
Having Enough Liability Insurance
Looking at how much liability coverage there is important. Many times insurance shoppers underestimate the importance of this. The costs that can occur in a collision that involves liability can mount up fast. There are many different costs that are affiliated with personal injury. One needs to make sure that their insurance is going to be able to cover this. It will be up to the insurance provider to determine how much they are going to pay. They will be the ones at that make it the settlement for the liability claim. Not having enough insurance in place can leave the insured liable for the excess costs.
Understanding Insurance Basics Pays Off
It is becoming more important for shoppers to become more in tune with what insurance covers. There are many different insurance companies throughout Canada to choose from. They are not all the same. They have a lot of differences. By knowing what these differences, are it can result in insurance savings. Plus understanding what the coverage is for helps one make informed choices. It can help determine whether one only wants the mandatory basic insurance. Or if they want to go for extra coverage. The extra coverage can be a real financial blessing even in minor accidents. This extra coverage can help when lawsuits. Referring to those against an individual who has been part of an accident.
There are many different components to vehicle insurance. Understanding what each of them is is beneficial. Also taking the time to shop for insurance is helpful. It can help to make sure one is getting the right amount of insurance. Also, it assists in choosing the necessary insurance. Finally, it can help to cut down the cost of insurance.