Signs an Insurer is Engaging in Bad Faith

Insurers have a duty to treat their insureds in good faith. Unfortunately, if you are hurt in a car accident and need to file a claim, it might feel like you are beating your head against a wall. Shady practices are rampant in the insurance industry, since many insurers are more focused on their bottom line than actually helping their clients. Contact an experienced law firm if you notice any red flags.

What Red Flags Should You Watch For?

An insurer is unlikely to blurt out that they are treating you unfairly. Instead, you might notice the following signs:

• Delayed investigation. An insurer should start a prompt investigation to determine liability and whether your insurance covers the claim. Some insurers drag their feet for no good reason.
• Lack of communication. Do you try to reach out to ask a question but end up going nowhere? Some claims adjusters never return a call or even respond to an email, so you have no idea what is happening in your case or why it is not proceeding properly. Often a failure to communicate goes hand in hand with a delayed investigation.
• Lies and misrepresentations. An insurer that lies about the policy has not engaged in good faith. For example, they might claim you didn’t pay your insurance premiums when you have the bank records showing that you did.
• Denial of claim. Your insurer might claim that your loss isn’t covered by the policy although it clearly is. This is a definite underhanded tactic.
• Unnecessary and repetitive document requests. You certainly need to provide documentation in support of a claim. But an insurer might repeatedly request the same documents over and over, which is a familiar delaying tactic.
• Covering only part of a loss. An insurer will certainly go through any receipts or bills you submit with a magnifying glass. That’s okay. What isn’t okay is for them to refuse to cover certain losses without a valid reason.
• Cautioning you against hiring a lawyer. This is a definite red flag. The insurance company is probably trying to pull a fast one on you. An experienced lawyer can understand dense legalese in an insurance contract and spot when an insurer misrepresents their obligations under the agreement.

At base, insurance agreements are contracts, and the language of the contract controls. Some insurers count on most insureds being inexperienced. You should meet with a lawyer to discuss whether you are receiving fair treatment.

Contact a Sioux Falls Bad Faith Insurance Lawyer Today

Working with insurance companies is one of the headaches after being involved in an accident. Nonetheless, the last thing you should do is give up. Many insurance companies make the claims process difficult with this hope in mind. Instead, contact Hoy Law to connect with one of our Sioux Falls bad faith insurance lawyers. We can negotiate a car accident claim and, if appropriate, seek compensation for bad faith insurance practices. Our consultations are free, so reach out at a convenient time.

Sources:

sdlegislature.gov/Statutes/58-33-67

sdlegislature.gov/Statutes/58-12-34