When you are injured in an accident or experience property damage, it can be stressful and sometimes downright traumatic. You don’t need insurance companies piling on by employing bad-faith tactics.
Bad faith is broadly defined as dishonest or unfair practices. Insurance companies are required to thoroughly
investigate, negotiate, and settle claims in good faith. When that doesn’t happen, they can be held liable.
To pay as little as possible, some insurance companies utilize the following bad-faith tactics:
- Unreasonable delays. Sometimes insurance companies will drag out the process, hoping that a claimant
eventually gives up. Most states have established deadlines of 15–60 days for denying or accepting a claim. - Deceptive practices. You might be unaware of a facet of your coverage. The insurance company is
completely aware, yet they do not alert you. They might also choose not to notify you of important
deadlines or provide the necessary paperwork to complete your claim on time. - Incomplete investigation. If the insurance company does not look at all the evidence or fails to conduct
a personal inspection, they haven’t been thorough. - Lowballing. Offering less money than a claim is worth is an example of bad faith.
- Refusal to pay a valid claim. When insurers deny claims that are clearly covered by their policies, it’s
evident that policyholders’ interests come in a distant second to profits. - Twisting language. An insurance company may purposely misrepresent the language of the insurance
policy and use it against you. - Threats. Some insurance companies threaten harsh legal action against a potential claimant- or imply it.
If you have been the victim of bad-faith insurance practices, contact an experienced insurance-law attorney to
protect your rights.
