How Do I know if my Insurance Company is practicing Bad Faith?

You trust insurance companies with important assets in your life – your home, your vehicle, your family, your business, and your health – and whenever you file a claim or run into an issue in one of these aspects of life, you want to be treated fairly and reasonably.

Insurance companies should always act in good faith, be honest and transparent, and have your best interests in mind, but sadly this isn’t always the case. Insurance company bad faith issues are an unfortunate reality that all adults need to educate themselves on and be prepared for following an incident in their life where claims need to be made against insurance companies.

What does acting in bad faith mean?

When an insurance company is being dishonest, doesn’t treat you fairly, isn’t fulfilling its contractual or legal obligation, or has entered into an agreement without the intention or means to fulfill it, this is called acting in bad faith. There are a number of different insurance company bad faith issues, but they all relate back to these things. When this happens, clients typically file a bad faith insurance lawsuit in an attempt to get compensated and see the company punished for their actions for unfairly and unreasonably handling their insurance claims. Laws exist in most states to specifically protect insurance owners from these bad insurance company tactics and actions in unreasonably handling claims – with legal penalties where the insurance company knowingly acted with bad intent in handling a claim.

How to know if your insurance company is acting in bad faith

Considering the amount of undue burden and stress insurance company bad faith issues can cause, you should know the signs so you can address things before they get worse. With this knowledge, you’ll also be better prepared to file a bad faith claim against the insurance company should you choose to do so.

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Your insurance company denies a claim without a good reason

It’s true that insurance companies can legally deny claims, but if they don’t give a reason or explanation for the denial, or the reasoning they give does not make sense, that could be a sign they are acting in bad faith. Often times, a company acting in bad faith will cite a complex part of your policy to justify the denial and rely on your confusion to get away with their unfair denial. This is one of the most common insurance company bad faith issues people experience, so you should be aware of it when submitting a claim or filing a bad faith insurance lawsuit.

Your insurance company does not conduct an adequate investigation

If your insurance company doesn’t conduct an investigation in a timely manner, fails to effectively communicate with the relevant parties, doesn’t analyze key factors, or constantly delays the investigation, it may be a sign they are acting in bad faith. This is another one of the more common bad faith issues that can lead to a bad faith insurance lawsuit.

Your insurance company delays your payment

When it comes to insurance company bad faith issues, denying your payment has to be one of the most frustrating and egregious actions. Companies can sometimes reduce the amount of money they pay to victims by delaying payments, hoping they get so desperate after bills have begun to pile up that they’ll accept anything, even if it’s a lot less than they deserve.

Your insurance company offers an insufficient settlement

If your insurance company offers you a lot less than your medical bills or other damages are worth, doesn’t consider additional damages, or refuses to fully compensate you for any reason that doesn’t make sense to you, it might be a sign they are practicing bad faith.

Your insurance company tries to confuse you with policy language or laws

An insurer may attempt to intentionally misinterpret the language of their own policies or the law, purposely use vague language, refer to outdated laws, refer to clauses in the insurance contract that don’t apply, or rely on laws that don’t apply in an effort to trick insurance owners. If you’re confused by what your insurance company is telling you or they fail to explain things effectively, they may be acting in bad faith.

Contact Whalen Injury Lawyers Today

Do you feel that your insurance company might be acting in bad faith? Insurance company bad faith issues affect thousands of people every year, so don’t feel alone. If you want to file a bad faith insurance lawsuit, we can help.

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