Hit-and-run crashes can leave people in very difficult situations. They have costs to cover but cannot hold the party at fault for the crash directly responsible. Unless police officers identify the driver at fault, it is impossible to use their insurance or file a lawsuit against them.
Frequently, those involved in hit-and-run collisions must use their own insurance coverage to address their collision expenses. Drivers with uninsured motorist protection on their policies can file claims requesting coverage when another driver leaves the scene of a crash. In some cases, how the insurance company handles a large claim could make a lawsuit against the insurance company necessary.
Bad faith practices are common
Insurance companies have an obligation to uphold their policies in good faith. Simply put, they should not lie to policyholders about their rights or deny them the coverage that they deserve.
If an insurance company refuses to honor uninsured motorist coverage after a hit-and-run crash, litigation might be necessary. If the policyholder faces long claims delays or receives an unfair settlement that does not cover their costs and is well below the full amount of coverage they purchased, that could also constitute a bad faith insurance situation.
When policyholders believe that their insurance companies have denied them reasonable coverage, they have legal rights. They may be able to request not just the coverage they deserve but also additional compensation due to the misconduct of the insurance company.
Reviewing the policy and the settlement offered can help people assess their rights after hit-and-run collisions. Bad faith insurance lawsuits are sometimes necessary when hit-and-run collisions lead to unfair insurance claims processing, denied claims or inappropriately low settlements.