What is Insurance Bad Faith?

What is Insurance Bad Faith?

Insurance companies do not always have your best interests in mind. Many insurance companies will do whatever it takes to keep your money in their pockets. Insurance companies use many different tactics to try and settle your claim for as little as possible. This often leads to insurance bad faith.

What is insurance bad faith?

Insurance bad faith is when an insurance company denies your claim without providing you a written reason why when you had a legitimate claim. Bad faith by insurance companies can send you into financial ruin because you are left having to pay all of your bills when you did nothing but pay the insurance company every month. So long as you have paid your premiums, the insurance company has very little reason to deny your claim.

Why does insurance bad faith matter to me?

If you have been injured and your insurance company is refusing to pay your claim, insurance bad faith matters a great deal to you. If an insurance company acts in bad faith, you can recover more than what your claim is worth.

What if my insurance company offers me a settlement?

You are not required to take a settlement. Many times, a settlement offer can lead to a bad faith claim because the insurance company offers you substantially less than what your claim is actually worth.

Even if the settlement appears reasonable, remember to account for all of your costs: current and future medical bills; lost wages; and rehabilitation. Many times, a settlement won’t consider these extra costs. The insurance company is hoping you won’t either and will instead be swayed by the prospect of a quick check.

So what types of damages can I get?

  • The amount of your claim – Generally, you can recover the full amount of your claim plus two or three times the amount.
  • Interest – From the date your claim was filed, you can recover interest from your insurance company.
  • Emotional distress – You can recover for the emotional distress your insurance company has put you through by acting in bad faith.

What should I do to make my bad faith claim stronger?

First, gather evidence. Make sure you take meticulous notes about each interaction with your insurance company. Also make sure you retain copies of all correspondence and documentation you receive from your insurance company.

Second, contact a law firm. They can help you take immediate legal action against your insurance company.

My insurance company might have acted in bad faith. What do I do?

If you think your insurance company has acted in bad faith, you owe it to yourself to immediately reach out to an insurance lawyer trusts. They can review your situation and determine if you have a bad faith claim against your insurance company and how to work together to secure you the best results possible.