When Insurance Doesn’t Play Fair and Engages in Bad Faith

Being injured in a car accident can leave you with a variety of questions, the biggest of which is probably, “Who pays for my damages?” Fortunately, if another party has caused your accident, you are eligible for compensation. However, this will mean engaging with your own insurance company as well as the other party’s insurance company. Over the years, insurance companies have been held accountable to engage in ‘good faith,’ which means fairly paying out claims. What happens when an insurance company fails to do so?

States require that insurance companies consistently engage in good faith, which means that they will support those submitting a valid claim and always fairly pay them out. When insurance falls below these standards, it is known as bad faith by the insurance company. You have options if this happens to you.

A Better Understanding of Bad Faith Insurance Claims 

When an insurance company has failed to uphold their duties, they have acted in bad faith. It is important to understand the many ways that an insurance company acts in bad faith so that you can determine if it is happening in your case. Then you have a better idea of if the insurance company is breaking laws within the state.

  • Refusal to pay a valid claim
  • Failing to pay a claim in a timely manner
  • Requiring unreasonable paperwork to process the claim
  • Failing to explain the reason for an insurance claim denial
  • Failing to timely settle a claim
  • Failing to defend you when a claim is made

One state might agree that one of these actions has led to bad faith, while another might not impose the same rules and regulations on an insurance company. It is important that you become aware of your options moving forward because this is a specific area of law that has many rules that must first be met and the need for evidence is high.

What You Can Do If You Suspect Bad Faith 

If you have suspected that your insurance or the other insurance company is denying your claim even though you are owed compensation, you have the right to bring a claim against them. However, bringing a bad faith insurance claim can be difficult to do at times, which is why you should understand that this could become a complex matter. An insurance company will likely deny that they have engaged in bad faith and might attempt to twist what you say around. This is why it is always important that you have a skilled attorney on your side.

Speaking with an Attorney About Bad Faith 

You have the right to bring a claim against a negligent insurance company. Bad faith is not always easy to prove but, if you have been collecting evidence, you can work toward results and gain the compensation you deserve. Our car accident attorneys at Sheftall & Associates believe in offering you the protection you deserve at this time. Please contact our law firm in Florida to find out what options are available for you at (904) 638-7712.


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