6 Things You Need To Know About Bad Faith Insurance Claims

If you’ve been injured in an accident, you may be entitled to file a bad faith insurance claim. This type of claim can be filed if you feel that the insurance company is not treating you fairly or is trying to avoid paying your claim. In order to file a successful bad faith insurance claim, it’s important that you understand the law and know your rights. In this blog post, we will discuss six things that you need to know about bad faith insurance claims.

Bad Faith Insurance Claims

Bad faith insurance claims are legal actions that may be taken when an insurance company denies a claim or delays payments without a good reason. These claims can be filed against both property and casualty insurance companies, as well as life and health insurers. You should consider hiring bad-faith attorneys in order to win these insurance cases. To have a successful bad faith insurance claim, policyholders must show that the insurer:

• Did not investigate the claim properly
• Unreasonably delayed payments
• Failed to explain why the claim was denied
• Denied the claim without proper justification
• Offered an unreasonably low settlement amount
• Took too long to process the claim

1) What is Bad Faith?

Bad faith is defined as a failure to deal with another in good faith or a breach of the duty of good faith and fair dealing. In order for an insurance company to be found guilty of bad faith, the policyholder must prove that the insurer had no reasonable basis for denying or delaying the claim. 

The burden of proof is on the policyholder to show that the insurer did not have a good faith reason for its actions. This can be difficult to do, which is why it’s important to have an experienced attorney on your side. 

2) What are the Penalties for Bad Faith Insurance Claims?

If you win a bad faith insurance claim, the insurer may be required to pay your attorney’s fees and damages. The number of damages will vary depending on the circumstances of the case, but they can be significant. In some cases, punitive damages may also be awarded.

Filing a bad faith insurance claim can be a complex and time-consuming process. If you’ve been injured in an accident and believe that the insurance company is acting in bad faith, it’s important to speak with an experienced attorney as soon as possible.

3) Bad Faith Insurance Claims Process

The first step in filing a bad faith insurance claim is to send a demand letter to the insurance company. This letter should outline your allegations and give the insurer a specific period of time to respond. If the insurer does not correct the problem within this timeframe, you may be able to file a lawsuit.

It’s important to note that bad faith laws vary from state to state. Some states have statutes of limitations that may restrict the amount of time you have to file a claim. You have two years from the date of the accident to submit a claim in most states. If you wait too long, you may be barred from recovering any damages. Even though they can vary, all laws generally require insurance companies to act in good faith when handling claims. If you believe that your insurance company has acted in bad faith, you may be able to file a claim under these laws.

4) Bad Faith Insurance Claims Are on the Rise

Bad faith insurance claims are becoming more common as insurers look for ways to save money. If you’ve been injured in an accident, it’s important to understand your rights and know whether you may be entitled to file a bad faith insurance claim. You also need to understand that insurance companies are businesses. They are not in the business of paying out claims; they are in the business of making money. As such, they will often try to find ways to avoid paying claims. If you feel that your insurance company is trying to avoid paying your claim, you may have a case for bad faith. For this type of case of bad faith, attorneys are needed.

5)  How to Avoid Bad Faith Insurance Claims

There are several things you can do to avoid bad faith insurance claims. First, make sure you understand your policy and what it covers. If you have any questions, be sure to ask your agent or broker. Secondly, don’t be afraid to shop around for a better policy if you feel like you’re not getting the coverage you need. 

6) Keep Records

If you do file a claim, be sure to document everything and keep records of all correspondence with your insurance company. This will be important in order to build a case.

By following these simple tips, you can help avoid bad faith insurance claims. But if you do find yourself in a situation where you feel like your insurer is acting in bad faith, be sure to contact an experienced attorney as soon as possible