Reader’s Question:
What does “doubtful and disputed claim” mean relating to auto insurance in Dallas Texas?
Harold
Dallas TX
The clause “doubtful and disputed claim” is typically in a car insurance settlement agreement. This is a way that an car insurance carrier tries to minimize their liability and risk. So basically the insurance provider is settling with you but without admitting liability.
Many car insurance settlements also have a clause “hold harmless”. This basically means that when you sign the release, the car insurance claim is over once and for all. With regards to the hold harmless clause, the insurer is saying that if you initiate legal action against the insurance company or their policy holder after signing the release you will be liable for any legal fees that they incur defending your legal action.
The purpose of this is to prevent you from changing your mind at a later time and try to get more money. In this manner if you change your mind and cause the policyholder or insurance carrier to incur defense fees they have the right to sue you to get paid back the legal cost.