Learn the difference between ordinary attempts to avoid paying a claim and insurance bad faith
Insurance companies make money by selling policies, not by paying out on claims. So from their perspective, looking for every possible way to avoid or limit compensation following an accident is just good business.
Of course, if you are the victim of an accident this attitude can be extremely frustrating. But remember, just because you do not agree with the insurance company’s assessment of your case does not necessarily mean they have acted in bad faith. Insurance companies may have many legitimate reasons for denying a claim or limiting compensation.
For example, they might believe they have evidence showing that you were actually at fault for the accident, that you at least bear partial fault for the accident, or that your injuries are not as severe as you claim.
However, sometimes insurance companies do cross a line into insurance bad faith, which is defined as any effort to avoid their legal obligation to investigate or pay legitimate claims.
Examples of Insurance Bad Faith
Insurance bad faith can take many forms, including:
- Unwarranted denial of coverage
- Failure to disclose policy limits to the claimant
- Failure to conduct a reasonable investigation of the claim
- Failure to confirm or deny coverage within a reasonable period of time
- Failure to deny or pay the claim within a reasonable period of time
- Failure to attempt to come to a fair and reasonable settlement when liability is clear
- Offering substantially less money to settle than the true value of the claim
- Failure to promptly provide a reasonable explanation for denial of a claim
- Failure to enter into any negotiations for settlement of the claim
Unhappy with Your Settlement Offer?
Remember, you do not just have to accept the insurance company’s decision on a matter. If you have received an offer you think is too low for your needs, or if you have not received an offer at all, you need to turn to an experienced personal injury attorney for help.
Your lawyer can help you call out insurance companies on any actions that may constitute insurance bad faith and fight aggressively for you to receive the compensation you deserve. If necessary, your lawyer can help you bring a breach of contract suit against the insurance company. If bad faith can be proven, you may stand to win compensation vastly in excess of the policy limit.
To learn more, please contact the Law Offices of Fernando D. Vargas at 909-982-0707.
