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Identifying red flags: 6 common indicators of insurance bad faith

On Behalf of | Jul 16, 2024 | Personal Injury |

Insurance is crucial in providing financial relief for medical expenses, lost wages, and other damages in a personal injury claim. However, insurance companies sometimes act in bad faith, denying policyholders the compensation they deserve. Here are some common signs your insurance company may be acting in bad faith:

1. Unjustified denial of claims

An insurance company acts in bad faith when it denies your claim without a valid reason. They must investigate your claim thoroughly and clearly explain any denial.

2. Delayed payment of claims

Insurance companies must handle claims promptly. Delayed payments can cause significant financial strain, especially when medical bills pile up.

3. Lowball settlement offers

Insurers may offer you a settlement far below the actual value of your claim. This tactic aims to save the company money at your expense. Be wary of settlement offers that seem unreasonably low and consult with an attorney before accepting any offers.

4. Inadequate investigation

A thorough investigation is essential for a fair claim process. The investigator should consider relevant evidence, interview witnesses, and thoroughly check medical records.

5. Misrepresentation of policy terms

Insurance companies must provide clear and accurate information about your policy. They should present the terms or coverage limits for transparency. Always review your policy carefully and seek clarification if needed.

6. Refusal to communicate

Open communication is vital in the claims process. Companies should refrain from avoiding your calls, promptly respond to emails, and provide updates. Consistent and transparent communication is a right for all policyholders.

Taking legal actions against insurance bad faith

If you suspect your insurance company is acting in bad faith, you may seek help from legal professionals. They can negotiate with the insurer and, if necessary, take legal action. With the proper legal guidance, you can protect your rights and receive the compensation you deserve.