Victims of automobile accidents often contend with many challenges. Apart from racking up huge financial bills, they grapple with both the mental and physical effects of the injuries. However, the law sets out to cushion them from suffering additional losses by guaranteeing them the right to file a claim seeking compensation for any harm or injury sustained.
Minnesota is a no-fault jurisdiction. This means that they will be compensated regardless of the at-fault party. However, this doesn’t mean that they will obtain the amount of compensation they deserve. Instead, victims of car accidents often battle it out with insurance companies who are out to maximize their profits.
Having said that, understanding the applicable law in the claim process can be beneficial as far as the claim is concerned. This, in addition to having a qualified and competent attorney, can lead to a successful outcome.
Here is an elucidation of how the “good faith law ” impacts your insurance claim in Minnesota and how a Swor & Gatto attorney can help.
Understanding Minnesota’s Good Faith Law
Also known as the Insurance Standard of conduct, Minnesota’s good faith law establishes the conditions under which an insurance company is allowed to deny your claim. Put simply, this law provides the basis for denying a claim or reducing the claim amount.
This law is founded on the grounds of reasonability. Meaning, if an insurance company is to deny or reduce the amount of claim, it must provide reasonable grounds for doing so. Failure to establish a reasonable basis for the denial or reduction may prompt the court to rule in favor of the policyholder.
As a consequence, the policyholder is awarded by the court damages and attorney fees in addition to the policy limit paid by the insurance company.
Why is Minnesota’s Good Faith Law Important?
Good-faith law can be seen as a safeguard that protects you against frivolous insurance companies who are out to protect their interests. Since the law came into force in Minnesota, there has been a significant shift in paradigm, especially in terms of preventing the exploitation of policyholders.
Through good faith law, insurance companies’ ability to withhold money from policyholders, perpetuate shady practices, and make illegal offers below the policy limits come to a standstill.
How does Minnesota’s Good Faith Law Affect your Car Accident Insurance Claim?
Putting it briefly, good faith law is applicable in first-party claims or those claims made by the policyholders against their own policy. In simple terms, the good faith law covers your car accident insurance claim.
Strictly speaking, this law is generally applicable when determining whether the insurance company acted reasonably or out of good faith when denying or limiting your insurance claim. To establish this, the court may consider several factors such as the facts and circumstances of the case and, in doing so, compare them to the hypothetical actions of a reasonable insurer.
In addition, the court may rule in your favor if sufficient evidence proves that the insurance company acted in total disregard of good faith law when reducing the amount or denying the claim.
How can an attorney in Minnesota help?
Generally speaking, establishing a valid claim isn’t easy. Even with the good faith law in Minnesota, many victims of car accidents have a hard time navigating the legal process because of its complexity. At the same time, if you don’t have the right skills and knowledge, then you may not understand the applicable laws and rules affecting your case.
As such, it is imperative to have a competent and qualified attorney in Minnesota who can help you achieve a favorable outcome.
In essence, an attorney will:
- Safeguard your interests
- Help you understand the applicable law
- Negotiate with the insurance company on your behalf
Contact a Reputable Car Accident Attorney in Minnesota
If you or your loved one has been involved in a car accident, it is vital to seek recourse in law and obtain damages and any other compensation for your losses. Even if your claim has been denied, you have a right to appeal the decision.
At Swor & Gatto, we strive to provide our clients with quality services and, at the same time, ensure that they are compensated fully.
Contact us today for a free case evaluation.