What Is Bad Faith by Insurance Companies?

When you’re injured, dealing with an insurance company should be straightforward. Unfortunately, insurance companies sometimes act in bad faith, causing more stress and financial strain. Bad faith occurs when an insurance company unfairly denies a claim or refuses to investigate or pay a claim within a reasonable time. This behavior is illegal and unethical, and it’s essential to recognize the signs of bad faith to protect your rights.

Signs of Bad Faith

Recognizing bad faith can be challenging, but there are common signs. One of the most apparent signs is delaying payment without a valid reason. If an insurance company repeatedly asks for more information or stalls in other ways, they might be acting in bad faith. Another sign is denying a claim without a proper investigation. Insurance companies are obligated to investigate claims thoroughly before making a decision. If they deny your claim without investigating, they may be acting in bad faith.

Lowball Offers

Another tactic used by insurance companies acting in bad faith is making lowball offers. These offers are significantly lower than what you deserve based on the facts of your case. If an initial offer seems much lower than you expected, it could be an attempt to settle your claim for less than its worth. Always compare the offer to the actual damages and consider getting a second opinion if it seems off.

Misrepresenting Policy Language

Insurance policies can be complex, and insurance companies might misrepresent policy language to confuse you or deny a valid claim. They may interpret the policy in a way that benefits them, ignoring the actual terms of your agreement. If you suspect this is happening, review your policy carefully and consider seeking professional advice.

Failing to Communicate

Effective communication is crucial in any claims process. If an insurance company is failing to communicate or is unresponsive, it can be a sign of bad faith. They might ignore your calls, delay responses to your inquiries, or provide unclear information. This tactic can frustrate you and delay the resolution of your claim.

Changing Adjusters Frequently

Insurance companies might change adjusters frequently to confuse and delay your claim. Each new adjuster may require you to explain your situation again, leading to unnecessary delays and confusion. This practice can be a deliberate strategy to wear you down, making you more likely to accept a low offer or give up on your claim.

Unreasonable Demands for Documentation

While it’s reasonable for insurance companies to ask for documentation, they shouldn’t make unreasonable demands. If they request excessive amounts of information or documentation that seems irrelevant, they might be trying to delay or deny your claim. Keep track of all requests and seek advice if you feel the demands are excessive.

What to Do if You Suspect Bad Faith

If you suspect an insurance company is acting in bad faith, it’s important to do something about it. Take note of all communications with the insurance company, including phone calls, emails, and letters. Keep detailed records of all communications and the dates they occurred. This documentation can be vital if you need to prove bad faith later.

Contacting a lawyer can also help you understand your rights and options. They can review your case, help you gather evidence, and represent your interests. Don’t hesitate to seek help if you feel overwhelmed or if the insurance company continues to act in bad faith.

Contact Los Angeles Personal Injury Lawyer Samer Habbas

If you believe an insurance company has acted in bad faith, you have options. Contact Law Offices of Samer Habbas & Associates, PC by calling 949-727-9300 or contacting us online for a consultation. Our experienced personal injury attorneys can help you understand your legal rights and options and work to hold the insurance company accountable.