What actions can a consumer take against his insurance company if they knowingly lie to him?

What actions can a consumer take against his insurance company if they knowingly lie to him?

An auto insurance company in Minnesota claimed that they cannot pay full damage on an auto accident because they claim there is a law which states that "-if an accident occurs at an intersection both parties are at least 15% responsible"-.I checked with the Minnesota State police and they say no such law exists.What action can I take against my insurance company?

Suzanne

At this point, you don't have proof that there is or is not a Minnesota law that says this. Keep in mind that the police are only familiar with the laws they enforce. It is highly probable this is an insurance law, so they wouldn't be aware of it.Give the Minnesota Insurance Commissioner's Office a call and ask to speak with someone there. If the company mislead you and reduced your payment, the Commissioner can order the company to pay the remainder, PLUS state-mandated interest (if permissable under the law). You can then file a civil suit for breach of contract, if you like.

mamatohaley1

If you do not have it is writing that they said it there is not a lot you can do. What they probably meant is that Minnesota is a comparative negligence state and they feel that this loss has 15% negligence on a driver. Very common practice!!

Matt1331

I'm curious which company would give you that answer.I work in the insurance business in Minnesota and I haven't heard of such a law. There may be some legal precedent here that they were citing, normally what would happen in a claim like yours is your insurance company would pay the full amount for the damage and then try and subrogate against the other driver's insurance company to try and collect what they felt the other party was responsible for.The best action you can take right now would probably be to contact the Minnesota Department of Commerce (www.commerce.state.mn.us) and inquire with them about it.Good Luck.

mbrcatz

Well, you need to be able to PROVE they said it. I seriously doubt they'll admit to it. What you CAN do, is request that they send the explanation of coverage in writing, to you. What probably happened, is the two adjusters got together, and agreed to split liability, possibly 85% / 15%, for the accident. Many states allocate liability this way (not that percentage in particular, but assigning a degree of fault to each driver who claims they had the green light - it's impossible to say which driver had the green, so they look at the damages on both cars, and see who was further into the intersection at the time of collision).Your AGENT should be the person explaining and acting as the middleman on this.If you feel they acted in bad faith, you can hire a lawyer at $200 an hour, and sue them for "bad faith". But I don't think they are acting in bad faith, just MY opinion.Source(s):agent, 21+ years

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