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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partner, Clayton T. Hasbrook who has years of legal experience as a personal injury lawyer. Our last modified date shows when this page was last reviewed.
When you file a car accident claim, you expect your insurer to offer help and payment within a reasonable timeframe. Most policies promise fair dealing, but some insurance companies fail to follow these promises. If your insurer denies or delays your claim for no good reason, you may be dealing with unfair tactics. At Hasbrook & Hasbrook, we help drivers who face difficult insurance hurdles and want to protect their rights.
Insurance problems can feel overwhelming when you have property damage, medical bills, and lost income. You might realize the insurer is not honoring what your insurance policy says it should cover.
When a company refuses to handle valid claims correctly, you have options under state regulations and case law. We stand up for your rights against an insurance company’s failure to act in good faith. What do you need to know about bad faith insurance practices?
What Is Insurance Bad Faith?
Insurance bad faith refers to situations where an insurer fails to meet its legal obligations toward a policyholder. This failure could include purposely delaying payments, refusing to investigate properly, or failing to communicate important details.
Many states, including Oklahoma, require insurance companies to treat policyholders fairly and respond to claims without unnecessary stalling. If the insurance company acts outside these guidelines, it can create serious financial harm for you.
State and federal laws recognize that people rely on insurance for coverage during times of crisis. If an insurer ignores its responsibilities or misrepresents facts about your claim, that insurer may be held accountable.
Courts often look at whether the insurer followed required procedures, such as properly evaluating your losses. By understanding your rights, you can identify when a company has crossed the line into bad faith insurance practices.
Common Examples of Bad Faith Practices
Some insurers use questionable tactics that make it harder for you to receive the compensation you need. Below are typical ways an auto insurance company might behave unfairly.
- Refusing thorough investigation. The insurer avoids gathering needed evidence and instead hastily rejects your claim. This practice blocks you from a fair review of your car accident details.
- Intentionally delaying payment. The company leaves you waiting for a resolution even after you submit all paperwork. Excessive lagging can wear you down or push you to accept a low offer.
- Misrepresenting coverage terms. They tell you a loss is not covered when, in fact, your policy includes it. Confusion around policy clauses lets them offer less than you deserve.
- Offering unreasonably low settlements. They hope you will take whatever money is presented right away. This undervalues the real costs of your injuries and damages.
- Accusing you of contributing to the accident. They wrongly blame you for causing the crash. By shifting fault, they reduce or deny any payout for your claim.
Bad faith insurance practices can adversely increase stress and financial strain. Working with a lawyer helps you identify these tactics and plan how to counter them effectively.
How Does Insurance Bad Faith Impact You as a Driver?
When an insurer refuses to handle your claim properly, you could face ongoing bills and no immediate way to cover them. Delays and denial of coverage might force you to borrow money or rely on family, placing even more pressure on your finances.
A lack of payment can also keep you from repairing your vehicle, forcing you to shoulder the costs yourself. The emotional toll of repeated setbacks can create frustration and anxiety.
You pay premiums so that your insurer steps up during crises. Yet, if it’s acting in bad faith, you can end up feeling betrayed and alone. This breach of trust can damage your ability to handle new challenges, such as medical treatment or returning to work.
By addressing unfair insurance actions quickly, you can minimize these negative consequences and pursue the benefits you deserve. We can help you pursue compensation for your medical costs.
Steps To Take if You Suspect a Bad Faith Insurance Claim
You might suspect that your insurer is treating you unfairly. A few steps you can take if you suspect bad faith practices include:
- Review your policy. Read every section and note what it covers, such as medical expenses. This helps you see if the insurer refuses a benefit that should apply to your situation.
- Gather evidence. Keep letters, emails, and phone logs related to your insurance claim. Detailed records can show a pattern of unresponsiveness or stalling.
- Document all communication. Write down dates, times, and summaries of conversations with your adjuster. This proof can support your argument if the company denies wrongdoing.
- Request explanations in writing. Ask for written reasons why your claim is delayed or denied. Vague answers or shifting excuses can point to potential bad faith.
- Seek a second opinion. If possible, get an independent appraisal of your car accident damages. A neutral estimate can help you fight low settlement offers.
- File a complaint. Your state’s insurance department might investigate. Official oversight can pressure the insurer to act fairly or risk penalties.
- Consult a lawyer. Legal guidance can make sure you follow the right steps. A lawyer can also help you prepare for a potential lawsuit.
Being proactive can stop delays from escalating. With a structured plan, you stand a better chance of obtaining proper compensation.
Legal Rights for Victims of Insurance Bad Faith
State and federal laws often provide you with legal avenues to challenge unfair treatment. If you suffer harm because your insurer failed to honor your claim in a timely or honest manner, you may sue for damages. Legal rules try to ensure insurers keep their obligations and do not profit by failing to help policyholders in need.
Pursuing a Bad Faith Claim Against the Insurer
A bad faith claim involves showing the insurer intentionally avoided paying you or lacked a reasonable basis for denial. You must prove your claim was covered under the policy and that the insurer’s delay or denial was unwarranted.
Courts look at whether the insurer investigated thoroughly, communicated clearly, and handled your file promptly. Evidence such as repeated unanswered calls or baseless denial letters can strengthen your argument.
Compensation Beyond the Original Claim Amount
If the court finds the insurer violated your rights, you might receive damages for emotional distress or extra expenses that resulted from the denial.
You could also recover attorney’s fees and court costs under certain circumstances. This approach holds the insurer accountable for going beyond mere negligence and causing real financial or emotional harm.
Recovering more than the initial claim amount sends a message that policyholders will not accept unfair conduct.
Challenges We Must Overcome When Pursuing a Bad Faith Claim
Building a strong case requires thorough evidence and an in-depth understanding of how insurers operate. Below are five major hurdles we often face when fighting these disputes.
- Proving intent. We must show the insurer behaved more than just incorrectly but knowingly refused fair handling of your claim. Gathering documents or insider testimony can help.
- Limited access to internal records. Insurers rarely share their notes openly. We may need subpoenas or court orders to uncover internal communications.
- Complex legal requirements. Bad faith laws differ by state, and the rules can be intricate. Staying on top of legal developments and precedents is vital.
- Resistance from insurers. Companies often fight back aggressively to avoid setting a precedent or paying large sums. We stay firm and document every detail.
- Time constraints. Some states have strict deadlines for filing bad-faith lawsuits. Meeting these deadlines while gathering enough proof can be demanding.
Despite these roadblocks, our firm remains committed to holding insurers accountable for wrongdoing. We combine detailed research with legal skills to push your case forward.
Recognizing Unreasonable Denials or Delays
Unreasonable rejections can include citing non-existent policy exclusions or ignoring evidence that supports your claim. Delay tactics might appear as endless “processing” or repeated requests for information already provided.
Our goal is to identify these patterns and highlight them as proof of wrongdoing. Quick action helps ensure your claim does not languish while you wait for insurance benefits.
How a Lawyer Can Help With Insurance Bad Faith Claims
Working with legal counsel gives you a solid plan for challenging unfair tactics. Below are five ways an attorney strengthens your position.
- Policy interpretation. We review your insurance policy to confirm what it covers. This knowledge helps challenge any misrepresentations by the insurer.
- Evidence collection. Lawyers track email chains, recorded calls, and internal memos. Such proof underscores the insurer’s mishandling of your case.
- Expert consultations. We bring in specialists or adjusters who can confirm you had a legitimate claim. Their testimony can verify the insurer acted unjustly.
- Negotiation strategy. By understanding how insurance works, we push for settlements that reflect the real value of your losses. This can lead to faster resolutions.
- Court representation. If the insurer refuses to settle, we present your arguments to a judge or jury. Our team frames the evidence to show how the insurer failed to uphold its obligations.
Choosing to partner with an attorney shows the insurer you are serious about your rights. A well-prepared case can often lead to fairer negotiations or a favorable verdict.
Contact Our Oklahoma City Car Accident Lawyer for a Free Consultation
If you think your insurer is ignoring your insurance claim or failing to meet its legal duty of coverage, we want to hear your story. At Hasbrook & Hasbrook, we believe every driver deserves honest, timely treatment from an insurer. We stand up for the needs of our clients.
We offer a free consultation so you can discuss your case and learn if a bad-faith insurance claim is right for you. Call us today to get the guidance you need and protect your interests for the long run.