By law, insurance companies in New Jersey must offer the services they promise. Of course, insurance corporations are highly profitable and it is in their best business interest to refuse claims and to offer inadequate settlements so that they don’t hurt their bottom line. When a company egregiously breaks their duty of good faith and fair dealings by wrongfully denying a claim or reducing the value of a claim, the plaintiff may file a standard breach of contract claim to hold the insurance company liable for their actions.
When motorists in New Jersey purchase an auto insurance policy, they believe that insurance companies will hold up their end of the bargain when it is time for a payout, if the situation calls for it. Drivers pay their monthly premiums with the hope that the money will be there for them when they need it the most. Insurance companies cannot deny your claim unless there is a valid reason for it. If a claim is unfairly denied, a plaintiff can file an appeal or a civil lawsuit.
It is not, however, in the best interest of an injured victim to wait for the claim to be denied before speaking with a skilled Princeton insurance bad faith attorney. Throughout the process of dealing with the insurance company, there may be signs of a future denial. Is the company not returning your calls? Is the company evasive or hard to reach? Is the application process taking longer than expected?