Did the Insurance Company Break a Promise to You After a Car Accident? Your Rights Under Georgia law
Understanding the legal responsibilities of insurance agents can protect you from denied claims and costly mistakes.
Were you in a car accident and told by an insurance agent your claim was covered only to have it later denied?
If you or a loved one was in a car accident in Georgia, it’s important to understand how insurance agents can impact your claim, especially if it was denied or coverage fell short. Knowing the legal responsibilities of an insurance agent can help protect your rights and ensure you receive the coverage you’re entitled to.
Who Is An Insurance Agent Under Georgia Law?
Under Georgia law, an insurance agent is authorized to represent an insurance company. When an agent is doing their job, the insurance company can be liable for what they say or do. This is known as the “agency relationship,” meaning an agent is an extension of their company, and this concept provides important protections to you as the policyholder.
Why This Matters After A Car Accident
After a car accident, you’ll likely be dealing with insurance agents — either your own or the other driver's. What these agents say and do can significantly impact your claim. Here's why it’s important to understand their role:
- What they know, the company knows: When you talk to an insurance agent, you’re talking to the insurance company.
- The company is responsible for its actions: If an agent makes promises about coverage or accepts information from you, the insurance company is generally required to fulfill those commitments.
- Your rights are protected: If an agent makes mistakes or even deliberately does something wrong, you may still be protected due to the insurance company’s responsibility for its agent’s actions.
A Real-World Example of an Insurance Agent Not Fulfilling a Promise
Emily was in a minor accident at the intersection of Main Street and Washington Road in East Point. She quickly contacted her insurance agent, Mike. During their conversation, Emily mentioned she had been feeling a bit dizzy that morning but attributed it to allergies. Mike took down her information, assured her she was "completely covered," and told her not to worry.
Two weeks later, the insurance company denied her claim, saying she had driven while impaired due to the dizziness. They argued they wouldn't have covered her if they had known about this health issue.
Under Georgia law, the information Emily shared with her insurance agent, Mike, about her dizziness is considered to have been communicated to the insurance company, as well. Therefore, they can't deny her claim based on information their agent already had.
What To Do If the At-Fault Drivers Insurance Agent Makes False Promises
What if you were in a car accident and the at-fault driver’s insurance agent tells you the company will “take care of everything,” but later offers only a fraction of your expenses or denies your claim entirely?
In Georgia, if the at-fault driver’s insurance agent promises to settle the claim or cover your expenses and you reasonably rely on those promises by not hiring a lawyer or delaying medical treatment, the insurance company may be liable to honor what the agent promised.
This concept, called “apparent authority,” protects people who reasonably trust what an insurance agent says and assume they are authorized to act on behalf of their company.
Consider Marcus's experience: After being rear-ended, the other driver's insurance agent, Jennifer, promptly told Marcus the company accepts full liability and will cover his medical expenses up to $10,000. Relying on this, Marcus delayed hiring an attorney and underwent physical therapy. Three months later, the insurance company offered just $2,000, claiming Jennifer wasn't authorized to make such promises.
Under Georgia law, the company may be legally responsible for what Jennifer said if:
- Jennifer appeared to have the authority to speak on behalf of her company.
- Marcus reasonably relied on her statements.
- Marcus was harmed or disadvantaged as a result.
Note: Dealing with your insurance agent and knowing that anything you tell them or the agent promises is assumed to be known or agreed to by the company is different than dealing with another person’s agent, since this may not be the case. In these situations, legal assistance can help.
Tips For Dealing With Insurance Agents After An Accident
If you've been in an accident in Georgia, here are some tips for dealing with insurance agents:
- Document all communications: Write down who you spoke with, when, and what was said. Save emails and text messages.
- Be honest and thorough: Tell the agent everything relevant about the accident, since anything they know, the company knows.
- Be careful with the other driver's insurance agent: Remember, they work for the other insurance company, not for you. Their goal is to protect their employer, not to ensure you get fair compensation.
- Don't rely solely on verbal assurances: If an agent tells you something important about your coverage or claim, ask for it in writing or confirmation from the company.
While you can generally rely on what they tell you, it's important to get information in writing. Georgia law holds insurance companies responsible for their agents' statements, but having written proof prevents disputes later.
Yes, telling the insurance agent typically counts as notifying the company under Georgia law. When an agent receives information while acting within their authority, that knowledge is expected to be known by the insurance company, as well.
If the agent made mistakes when completing your claim application without your knowledge, the insurance company usually cannot use those errors to deny coverage. Georgia law generally prevents insurance companies from benefiting from their own agents' mistakes unless you were intentionally working with the agent to deceive or manipulate the company.
An insurer's agent's primary duty is to the insurance company, not to you. They are not legally obligated to ensure you have the best coverage available, which is why it's important to read your policy and ask questions.
You may have a claim against both the agent and the insurance company if you can prove the agent intentionally misled you. Georgia law allows claims for fraud if an agent deliberately provides false information that causes you harm.
If an insurance agent provides conflicting information about your claim, ensure you document everything and seek clarification from another representative from the insurance company. If the issue persists, you may want to file a complaint with the state insurance department.
