Can a Insurance Agent close a claim without your permission?
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Our agent totaled, towed our car from auto repair and paid off loan without our permission. We specifically stated we were not ready to close claim. Can they do this legally?”
Asked April 11, 2017
When an insurance company closes out a claim without your consent, it my raise several red flags. For starters, it may seem suspicious. Claimants may feel as though insurance agencies do not have the authority to do such a thing. For many, it may seem as if the insurance company has an ulterior motive and are not invested in the claimant's best interest. Why else would a company who provides you with insurance not disclose you with information about closing out your case? Right?
Unfortunately, is is totally legal for insurance companies to solve cases the way they see as acceptable. Although unfair and unethical, it is perfectly legal for insurance companies to do. Therefore, insurance companies who do inform you on the status of your claims should be applauded. It is important to remember they to not owe claimants anything other than insurance. Therefore, disclosures are simply a kind gesture of behalf of the insurance company. Perhaps, a reason why many insurance companies keep you up to date about your case is because it is good business. They may feel as though providing claimants with this information builds trust between them and ultimately ensures customer loyalty.
However, they do not have to. In addition, insurance companies are only required to settle covered claims. Anything out of their contractual obligations are deemed void in the court of law. After a claimant files a claim, typically they are assigned a claims adjuster. The claims adjuster is responsible for assessing damage pertaining to your coverage. If they do not personally inspect the damage, they may require you to submit evidence in a specific time frame. To conclude, it is important for claimants to choose reliable insurers. Otherwise, they may end up in situations such as the aforementioned. Find a reputable insurance company.
Answered April 13, 2017 by azadam