7 Bad Faith Insurance Practices
Car Accident Lawyers Can Protect Your Rights
You depend on your insurance company to always have your back in case of an accident. You, therefore, expect them to give you fair compensation for property damages, medical bills, lost wages, and other losses depending on the specifics of your policy. But this is not always the case. When your insurance company undervalues or wrongfully denies your claim, this is known as “bad faith.” Insurance companies often take advantage of people’s ignorance of the law to get away with all kinds of unjust practices. Whether it is forcing you to accept a settlement offer that is not enough for your needs, or refusing to cover the treatment you need to get better, bad faith practices are unfortunately something you have to watch out for after an accident.
There are several practices that constitute bad faith. Here are some examples:
- Denying a claim without providing a reason
If an insurance company denies a claim after a car crash, it should definitely provide a reason. In case you made a legitimate claim to an insurance company following a crash, and your claim was denied for no reason, you might be able to file a lawsuit against the insurance company itself for bad faith.
- Not conducting sufficient investigations to a claim
The duty of fair dealing and good faith requires insurers to carry out quick and scrupulous investigations into your car accident claim. If the insurance company delayed conducting its investigations or carried out poor investigations, you might have a bad faith insurance claim against them.
- Delaying payment of a legitimate claim
Insurance companies ought to pay claims within a sensible time frame. If your claim has been approved, but your payment is being unreasonably delayed, then you have been subjected to practice in bad faith.
- Offering considerably less settlement than the worth of a claim
Insurance companies often offer “low-ball” settlements, but if they refuse to budge from this offer, they might be acting in bad faith. If you were offered a considerably less settlement amount for your claim by an insurance company, you might have a claim of bad faith.
- Making threatening statements
An insurance company should never threaten third parties or policyholders who make claims following a car accident. If an insurance company has threatened you in any way, contact our law firm right away as you will need the help of one of our car accident lawyers to file a bad faith claim.
- Misrepresenting policy language or the law
If an insurance company deliberately misrepresents the language or law in the insurance policy that is applicable to your car accident claim, you might have a legal claim of bad faith against the insurance company. Insurance companies ought to be truthful and honest in their statements about the insurance policies and the laws involved in a claim.
- Denying documentation requests
Insurance companies ought to obey reasonable documentation requests from third parties and policyholders. If you requested an insurance company to offer documentation in support of its decisions and it denied you, you might have a claim of bad faith.
When an insurer acts in bad faith to a client, it often makes a bad situation, worse. You pay insurance companies to protect you during your times of need, and the law, in turn, protects you from insurance companies that put their interests before yours. Thankfully, car accident lawyers are there to ensure that your legal rights are protected. They will help you in a court of law to get what’s legally yours.
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If you think that you have been a victim of such bad faith insurance practices, you should contact us as soon as possible. Our car accident lawyers will be honored to assist you to pursue the compensation you are entitled to.