This is from the "believe it or not file"
James writes -
I was involved in an accident three years ago and it was my fault. My insurance contacted me some months ago saying that i am being sued by the other driver and i need to give a statement. I gave the statement and some weeks later i received a letter by my insurance that they are not going to cover me for this law suit and have the right to retain any expenses they incur as a result of defending me. They stated the reason was because i gave false statements as to how the accident occurred. Will they stick me with a huge bill? What happens if I don't pay? And do I have the ability to sue my insurance for bad faith? Please help
Some answers -
- Can you sue? Sure. But is it really bad faith? If you did in fact give false statements, then that voids your contract with them and they are within their rights to deny coverage.
- First off you need to suffer general damages in order to ask for damages for bad faith. You can't just sue for just bad faith. Second unless you can prove that you did not give false statements then you don't have any reason to sue your insurer, let alone for bad faith. Seeing how you didn't even once claim in your post that you were innocent of the accusation I'm assuming you actually gave false information. If you did then you're screwed. If not then you can sue the company in court to have the judge declare that the insurer has to defend you and then you can ask for damages for bad faith (doesn't mean the judge will give it to you).
- You might want to speak to a paralegal or a lawyer for advice.
Editor: Is it any wonder why automobile insurance rates are what they are?