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What is auto insurance bad faith?

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Bad faith auto insurance

Bad faith auto insurance is complex and complicated, involving many vital points regarding the tactics some insurance companies use to avoid paying their clients a fair and just settlement for damages incurred from your auto accident.

What are the tactics that some insurance companies use?

There are many ways in which an insurance company acts in bad faith. Discover how insurance companies use various tactics to avoid paying for your legitimate claim.

Insurance companies have a legal duty to promptly investigate and answer your claim for damages due to a car accident. Your car insurance company is obligated to pay you for coverage that you pay for every year.

  • Bad faith actions by insurance companies are not rare.
  • Bad actions happen too frequently.
  • Bad actions have become an all too common occurrence among automobile insurance companies.

The top reasons why this happens were gathered by the National Association of Insurance Commissioners and are listed as follows.

  • Stalling Tactics

Some insurance agents make you wait an unreasonably long amount of time to process your claim for payment. They may keep asking for more information and say that they must investigate your claim further. This tactic is used to hopefully cause you to drop the claim out of frustration.

  • Refusal of Payment

This tactic is used by gathering information and twisting it in their favor. Thus, your insurance agent and company can illegally deny your compensation claim. When this happens, you become easily frustrated with your insurance company’s red tape and bad actions. You think it is easier to drop the claim rather than continue fighting for your rights. Please allow us to take up your fight for a reasonable settlement.

  • Underpayments on Your Claim

When your insurance company does not give you a fair settlement that does not begin to pay for all past, present, and future damages, pain, and suffering, you become tired of the fight. The company’s goal is to see you accept this low and unfair offer because you are stressed and tired of fighting for your rights.

  • Stating the Claim Invalid

It is common for car insurance companies to hire expert investigators to review the actual facts of your case. These experts work for a positive outcome for the insurance company and are not advocating your rights for a fair claim.

These experts, along with the insurance company, can twist the actual facts of your case in their favor, thus denying your claim. You are likely to believe you have no recourse, and you drop your claim.

What constitutes bad faith actions by an insurance company?

If you should purchase a car insurance policy from an insurance company and get in an accident, you would naturally file a claim with your insurance company to help you pay the damages to you and your car. This is why you have car insurance. Besides, it is illegal to drive an uninsured vehicle on any roadway in any state.

An insurance agent’s first responsibility should be you, the client. However, the unspoken rule for most insurance companies is that an insurance company’s first responsibility is the company. These agents work for their company, and they can save money for the company by not paying you for a legitimate claim.

Never believe that your insurance agent and company are close friends; no matter how friendly, helpful, and personable your insurance agent seems, they are not your friend!

  • Bad faith insurance occurs when your insurance company fails to meet its obligation to you by paying for your losses. Your claim is legitimate. However, the insurance company may neglect to investigate and process your claim or not process your claim in a reasonable time.
  • Bad faith insurance can occur when you are searching for the right car insurance policy, and the agent misrepresents insurance language to not pay on a legitimate claim.
  • An agent can fail to inform you of your policy limitations, and what parts of your policy are excluded before buying your insurance.
  • An insurance company acts in bad faith when they take extra measures and make unreasonable demands proving your covered loss. The bottom line for many insurance companies is money. Insurance companies do not want to pay out any more money than possible.
  • Some insurance agents do not disclose your contract terms in their entirety, the language of the insurance industry, disclose your policy provisions, policy exclusions, and terms for the sole purpose of not paying legitimate claims.
  • Your insurance company acts in bad faith when the agent ignores supporting evidence for your loss claim.
  • A bad faith action happens when an insurance company fails to explain why they refused to pay for your loss claim and justify their denial.
  • Another tactic that an insurance company may use to avoid paying you is to hire (neutral?) experts who work for them. These experts review your medical reports, police reports, witness statements, etc. However, this information is twisted in favor of the insurance company, not you.
  • Our attorneys find too many times that delays in payment for submitted claims are an act of bad faith. This tactic is meant to cause you undue stress, frustration, and confusion. You will then give up your efforts to seek fair and deserving compensation.

When are bad faith actions not considered bad faith actions?

All insurance agents can make simple mistakes at some point in their job, which does not constitute bad faith. However, bad faith happens too often, which is why states across the United States put specific laws in place to protect you from the bad faith actions of these select insurance companies.

When your insurance adjuster investigates a claim and the agent, and you do not agree on the amount of loss, this does not constitute bad faith. However, your agent’s responsibility is to provide you with strong support for their findings that cause them to calculate a different amount of settlement than you thought you should receive.

It is considered bad faith by the insurance company if they neglect to answer your claim in a reasonable time. This action is regarded as negligence of your agent, whether or not they made an honest mistake, causing them to be careless and not respond to your claim as soon as possible. This action is considered negligent.

It takes the expertise of your seasoned attorney to sort through all of the specifics of your case because not all claim denials are attributed to bad faith actions. Understand that the insurance company may not be stalling because it does take time for your claim to work through the system.

Your attorney may find that your insurance company denied your claim for legitimate reasons and acted in good faith. We must see their reasons for how they answered your claim and why they rejected the claim.

When your insurance agent seems to be stalling, it may be that your agent has many claims to investigate before getting to your claim. Most insurance agents have so many claims that they cannot move them as quickly as they want. This makes it sound like the company is negligent and stalling your claim process.

Does bad faith insurance apply only to vehicle insurance?

Every type of insurance is at risk for bad faith, not just car insurance. The types of insurance at risk for bad faith actions include,

  • Homeowners
  • RV
  • Whole and Term Life insurance
  • Renters Insurance
  • Health Insurance
  • Identity Theft Insurance
  • Long-term Disability and Care Insurance
  • Umbrella Insurance
  • Flood Insurance
  • Specific Valuables Insurance
  • Accident and Injury Insurance
  • Vehicle Insurance

Never fight the judicial system alone regarding bad faith insurance companies

If you suspect bad faith actions from your insurance agent and company, please call us for help and never think that you can win this fight alone. As soon as you accuse your insurance agent of bad faith, your insurance company consults and hires their team of attorneys to make sure you do not win your claim.

You cannot fight this battle without your attorney. You will never win your case if you do not have a seasoned, licensed, skilled bad-faith attorney fighting for your rights to a legitimate claim for losses.

Fighting a bad faith auto insurance company will be unsuccessful without the proper attorney by your side. We are not afraid to confront any insurance company and their attorneys and advocate for you if you suspect you are a victim of bad faith actions.

While all states enacted bad faith laws, some states may differ in the language of this law. Some rules make sure insurance companies pay basic damages to you when the company acts in bad faith by denying your legitimate claim. These damages may be paid for,

  • All of your out-of-pocket expenses you paid
  • Missed work
  • Attorney fees
  • Medical bills related to your accident
  • Personal property damage

Settlements can be paid to you through a jury decision for punitive damages by your insurance company if that company has been needlessly and harshly negligent.

Should you consult an auto insurance claim denial attorney?

If you ever suspect that your car insurance company acted in bad faith, it is of the utmost importance to call Oklahoma’s esteemed attorney, Doug Terry Law. Please give us a free no-obligation call. We will review the facts of your case and let you know if you have a winning settlement claim against your car insurance company.

We advise you not to fight this battle without a licensed, seasoned, and skilled attorney by your side, fighting for your rights. We know what the tactics are that some insurance companies use. We know how to fight the system and get our wronged clients the fair and reasonable settlement they deserve.

We can help you fight the insurance industry when they act in bad faith. We must review your insurance policy to find out if,

  • Your policy covers what you think it covers
  • The limits of coverage
  • Know the deductibles
  • Personal liability
  • Property damage
  • Comprehensive coverage
  • Collision coverage
  • If you have underinsured and uninsured coverage

Our claim denial attorneys are devoted to clients mistreated by insurance companies in Oklahoma. We ensure that you are treated fairly and receive just compensation for damages due to your car accident.

Never walk away from an insurance claim for damages because your agent is causing you stress and frustration. It is our expertise to handle insurance companies and their tactics. We know how to navigate the insurance industry and advocate for your rights.

Your first consultation call to  Doug Terry Law in Edmond, Oklahoma, is a free, no-obligation call. We cannot fight for your rights until you give us a call to review the specifics of your claim. We will tell you if you have a winning compensation claim against a bad faith insurance company.

Call our licensed, award-winning, and esteemed bad faith insurance attorneys as soon as possible at 405-289-9644. We can start to work on your behalf and get you that rightful and fair compensation you deserve.

Do not fight insurance companies without Doug Terry Law by your side.


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