Your car was totaled in an accident, and, luckily, no one was injured. Now, you need to work with your insurance company to secure a settlement because you need a new set of wheels. Along the way, a surprising obstacle gets in your way. It is your insurance company.
What? Isn’t my insurance company looking out for me? Surprisingly, in certain cases, insurance companies look out only for their own best interests, and that has to do with money. They just may not want to pay, which is in direct violation of your policy. In these scenarios, insurance companies may deny your claim, subscribe to delay tactics and even lie to you. As a result, you have grounds to file a bad faith claim against your insurance company.
Denies, delays and cancels your claim
Bad faith scenarios often arise when an insurance company denies your claim, fails to conduct a thorough investigation or just plain takes too long. Here are some scenarios in which an insurance company acts in bad faith, providing you with the chance to sue:
- Fails to provide an adequate explanation about your policy and how it applies to your claim.
- Denies your claim while your policy clearly states coverage is warranted.
- Delays your claim, subscribing to stalling tactics that are frustrating and illegal. And, if the insurance company comes up with a resolution, it may provide a lowball offer.
- Makes changes to your policy after you filed your claim.
- Performs a lackluster investigation into your claim. Insurance companies must complete investigations in a timely manner.
- Abruptly cancels your policy.
- Makes unreasonable requests and demands on you. Insurance companies may play this game, making you travel on a never-ending “hamster wheel” by ordering you to make many visits to physicians or provide unnecessary and duplicate documents.
An insurance company can subscribe to many methods of negligence. Do not let them push you around. If your instincts tell you that something is not right with your insurance company, take heed and seek legal guidance.