Do I have a good case? Breach of Contract or Bad Faith?

Asked 12 months ago - Montclair, NJ

Filed Auto Theft Claim 2/13. Claim was denied 6/13. Ins Company states 1) car could not have been stolen because it had a transponder 2) didnt provide accurate credit report info during our examination under oath 3) they state we were car shopping and say they called dealerships to verify we were there (complete lie)..we continued making car payments for 4 months during claim and the process was very sloppy. We were asked for documents 3-4 months into claim and rep was moved to different dept 3/4 through our claim. We need to pay this debt, we need a letter of apology from ins co to credit bureaus, and we need compensation for the sloppy handling of the claim. Do we have a case here? Its very hard to find an attorney to take on this case..

Additional information

Progressive sites "Fraud or Misrepresentation" as the reason for denial. Appeal was denied 7/13 and Dept of Insurance was contacted 7/13 and we still havent heard anything. Fraud Deterrence Investigator contacted us 8/13 and even asked us if we had a lawyer and that we should fight this.

Attorney answers (3)

  1. Martin L Bearg

    Contributor Level 14

    1

    Lawyer agrees

    Answered . It is difficult to say solely on the information provided whether or not you have a case. In general, if your car was insured, and it was in fact stolen, then the company has an obligation to pay (the payment may not equal the amount owed). Some companies, such as Allstate and Liberty Mutual are advertising they will buy the same car or year newer if your car is stolen, not a 2013 or 2014 model.

    You might write the Department of Bank and Insurance prior to trying to sue.

    Your insurance agent, unless you use GEICO or another company with no agents, such as The General, and 21st Century, should be helping you with this claim.

    If not, I am certain there is a young attorney who is willing to take on the Giant insurance company. Remember, as long as they have not paid, they are making money on the premiums you paid.

    Best of luck! I am sorry for your aggravation.

    The foregoing is not intended to be legal advice upon which you may rely as I have not been retained for this purpose.
  2. Michael T Millar

    Pro

    Contributor Level 19

    Answered . As a general rule, it is not fraud for an insurance company to deny a claim. It may be a breach of contract.

    If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education... more
  3. Ryan Michael Davidson

    Pro

    Contributor Level 15

    1

    Lawyer agrees

    Answered . If your claim was denied, and you are unsatisfied with the reason, you should hire a local attorney to dispute the denial. That's the long and short of it.

    As to the specifics, there really aren't enough facts to give detailed advice. That's something you're going to need to discuss with that attorney.

    This answer does not constitute legal advice and does not establish an attorney-client relationship.

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