There are a number of laws which govern how Colorado insurance companies do business. The Revised Statutes contain important provisions related to how the insurance company must behave towards those they insure. Penalties are also detailed for insurance companies who fail to behave properly when faced with a claim. The Colorado Unfair Claims Practice Act is located in Colorado Revised Statutes §10-2-1104 and states the following:
There is considerably more to the Colorado statutes, however the basic tenet is that insurance companies are required to be honest and above-board with those they insure as well as third-party claimants, and should always provide a factual reason in the event of a denial of a claim. Insurance companies are also not allowed to use the threat of insurance cancellation in order to force a low settlement.
If your insured acts in bad faith, you may be able to collect up to double your actual damages as well as your attorney’s fees. “Bad faith” exists when your insurance company treats you unfairly, or fails to offer you a reasonable standard of care.
Being treated unfairly or dishonestly by your insurance company following a car accident is like adding insult to injury. You are first injured, perhaps by the negligence of another driver, then your insurance company refuses to compensate you for your injuries and damages. Whether a particular practice will support a lawsuit will, of course, depend upon the facts of your case. If your insurance company has used more than one unfair practice to deny your claim, this could certainly present a strong case for bad faith. Those who have a strong personal injury attorney by their side from the time of their accident forward are much less likely to experience unfair treatment by insurance companies.
In most cases, when the insurance company realizes you have an advocate in your corner who knows the laws and has no intention of letting you be taken advantage of, there will be no more unfair treatment. If you have been injured in a Colorado car accident speak to a knowledgeable Colorado car accident attorney as soon as possible—you will be glad you took that one simple step.
If your insurance company is giving you the runaround or has unfairly denied your claim, we can help. Insurance companies are notorious for playing unfairly with injured accident victims and using a “take it or leave it” approach. When this occurs, you need an experienced Colorado Springs law firm on your side. Contact the experienced Colorado Springs insurance dispute attorneys at the Green Law Firm today to schedule a no-obligation consultation and discuss your case. Call us today at 1-719-694-8515.