Purchasing insurance is a fact of life. We insure our cars, homes, trips, and more to protect our assets in the case of damage, emergency, or danger. But sometimes insurance companies don’t follow through on their end of the bargain. If an insurance company has tried to avoid its responsibilities in paying your claim, keep reading to find out how to sue an insurance company for bad faith.
What is Insurance Company Bad Faith?
Bad faith insurance occurs when an insurer refuses to follow through on their legal obligations to a client. Normally, this happens if an insurer denies payment to their policyholder, even if they have a legitimate claim. Bad faith insurance also occurs if an insurance company refuses to investigate your claim within an appropriate time frame. These are only two examples.
Bad faith insurance can play out in a variety of ways. It’s important to recognize when you are experiencing bad faith insurance so that you can take action and do something about it. Some other examples of bad faith insurance are:
- Refusing to make a payment on a lawful claim.
- Attempting to pay you less than what the claim is worth.
- Ignoring your attempts to communicate.
- Intimidating you out of filing your claim.
- Making unreasonable requests (overloading on paperwork, asking for irrelevant documents, etc.) in an effort to prolong or null the process.
- Increasing your insurance premium for unfair or unlawful reasons.
- Being threatening or rude in an effort to stop you from filing your claim.
If you experience any of these behaviors, it could be a reason to file a suit for bad faith insurance. Continue reading to learn more about insurance company bad faith and your options for suing.
Suing for Bad Faith
If you would like to sue an insurance company for bad faith, you need to gather evidence that can prove their actions. Collect all possible documents and records that might be useful in proving their bad faith actions. It’s especially important that you keep documentation of all communications with your insurance company.
Once you have these documents collected, bring them to your attorney so that they can review everything at once. Your attorney may begin by corresponding with the insurance company to explain the claim of bad faith insurance. From there, the insurance company may decide to look at the case again and make the correct payment. Even so, you may decide to sue your insurer for bad faith.
Settling Your Bad Faith Lawsuit
Insurance companies have a duty to settle and arbitrate your claims in good faith. This means they need to make a solid effort to pay you your claim within a reasonable timeframe. If they do not, they are acting in bad faith. When it comes to a lawsuit and a subsequent settlement, the court requires insurers to act in good faith if the claimant wishes to settle within the limits of their policy. Insurers are not totally protected from bad faith practices in this way, but it can make settling your claim a bit more tricky.
Call Us For A Free Case Review
If you are an insurance client whose insurance company has tried to escape their obligation to either pay for or investigate a filed claim, you have the right to take action. Call our office today at (602) 313-1930 and we would be happy to go over your case for free. We will discuss the specifics of your case, your options, and answer any and all of your questions.