When you get hurt in a crash, you need insurance to help you pay your bills and fix your vehicle. Unfortunately, many insurance companies will go to great lengths to avoid their responsibilities to policyholders.
Such behavior can constitute bad faith insurance practices. There are state and federal laws that demand that insurance companies uphold the policies they write. When a company fails to do so, policyholders may need to take action. If you recognize your insurance company’s behavior in any of the three categories below, you may need assistance moving forward with your claim.
They try to surprise you with new requirements
Misleading marketing information or the failure to disclose crucial policy requirements can both lead to unfair outcomes for policyholders. If an insurance provider increases their deductible or otherwise adds requirements for coverage that weren’t disclosed when you bought the policy, that could constitute bad faith insurance.
They delay or deny obviously valid claims
You may need compensation for property damage in medical losses, but the company has to validate everything first through an investigation. When they drag things out for months to avoid paying you, don’t invest in a full investigation or deny a claim that clearly falls within the scope of a policy, the company violates its obligations to you or the policyholder whose policy covers you.
The compensation they offer is far too low
Insurance companies don’t have to pay you anything beyond the maximum value of the policy, but they often pay far less than that. If you received compensation that did not truly cover your medical expenses, lost wages or property damage, a low settlement offer or underpaid claim could also be bad faith Insurance.
Recognizing these warning signs can help you negotiate with an insurance company more aggressively or alert you to the fact that you need to take additional steps to protect yourself.