Bad Faith Insurance Practices in Auto Accidents: An Explainer

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Car accident

If you get hurt in a car crash, you’ll probably file a claim against the other driver who caused it. After getting hurt and dealing with medical bills and lost wages, you’ll expect the insurance company to give you the compensation you deserve.

But unfortunately, that doesn’t happen all the time. Many auto accident victims get low compensation or get their claims denied completely.

If you’re having problems with the insurance company after an auto accident, it’s a good idea to talk to a lawyer who knows about these things. Experienced auto accident lawyers can tell you about the different unfair insurance practices that can happen in accident cases and help you get fair compensation for your damages.

 

What Are the Bad Faith Insurance Practices in Auto Accidents?

Bad faith insurance happens when the insurance company tries to deny or delay claims on purpose. They might not follow what’s in the policy or the laws of the state where the claim is made.

Here are some examples of bad-faith insurance practices:

  • Saying no to a claim that they should pay
  • Taking too long to pay a claim
  • Asking for too much paperwork for your claim
  • Not saying no to a claim quickly enough
  • Not explaining why they reject a claim
  • Not looking into your claim properly
  • Saying something wrong about the policy
  • Not telling you about the policy limits before you buy it

 

What Are Not Considered Bad Faith Insurance Practices?

Actions that cause harm to policyholders, especially after they’ve been injured in an auto accident, are often seen as bad faith practices. However, only some actions causing harm are necessarily done in bad faith.

For instance, if the policyholder and the insurance adjuster disagree about the loss following an accident, it doesn’t automatically imply bad faith on the part of the insurance company.

However, if the adjuster fails to explain to the policyholder why the claim amount differs from what was expected, it could indicate a bad faith practice. It’s essential to understand that an error or mistake by the insurance company isn’t the same as a bad faith claim.

 

How Do You Deal with an Insurer Indulging in Bad Faith Insurance Practices?

Here are some suggestions for safeguarding yourself if you suspect an insurer is acting unfairly.

  1. Keep thorough records of all interactions with the insurer, noting dates, claim rejections, or delays. Documenting everything, no matter how small, is crucial, as it could be important for your case.
  2. Take detailed notes about any steps you’ve taken to prevent further damage to your property, like covering a hole in the roof with a tarp. This documentation can protect you if the insurer argues you didn’t do enough to mitigate the damage.
  3. If you believe the insurer is handling your claim unfairly, report it to your state’s Department of Insurance by filing a formal complaint.
  4. Stay composed but persistent if the insurer denies your claim or uses delaying tactics. Don’t stay silent or give in to pressure from the insurance company.
  5. Seek legal advice. Insurance claims are complicated, and navigating them on your while also dealing with the insurer can be overwhelming. Let a bad-faith insurance attorney handle the legal battle for you.

 

See How Auto Accident Lawyers Can Help

Compensation claims for auto accidents are riddled with complications. Without the assistance of an experienced auto accident lawyer, the odds of a successful compensation claim are incredibly low.

If you’ve been involved in an auto accident, you should get in touch with an auto accident lawyer as soon as possible. The legal assistance they offer will be hugely beneficial to your compensation claim.

 



 

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