If you are hurt and need to make an insurance claim, your hope is that the insurance company will be fair to you and provide you with what you need as you focus on your own recovery. The reality is that an insurance company will be more likely to do all it can to avoid paying out the maximum that it could for you.
Why? The insurance companies are in it to make money. While an insurance agent may feel bad about your injuries or personally wish you well, their job is to save their company money in any way they can.
Understanding bad faith insurance
Bad faith insurance occurs when an insurance company uses tactics to get out of paying their contractual obligations. For example, if the company tries to deny a valid claim or misrepresents a policy provision to avoid paying a claim, then you could be a victim of bath faith insurance tactics.
It is in bad faith for the insurance company to deny your claim despite you providing them with evidence supporting your reason for making a claim. Fortunately, as a consumer, you are protected against these practices.
What can you do if an insurance company doesn’t want to pay you fairly?
It is common to see an insurance company delay a claim or to try to deny it when it really should be approved. If that happens, you may want to look into your legal options. Insurance companies are required to get back to you within a reasonable amount of time and to process your claim fairly. If the company is delaying your claim in hopes that you’ll drop it or continues to deny your claim despite the evidence, then you could pursue a lawsuit in response.
Whether an insurance company refuses to pay, will not pay fairly or is taking too long to process your case, you may have legal options open to you. You may even be able to seek punitive damages to punish the insurance company if the case is particularly egregious. Get to know your legal rights, because you are protected against this behavior.