Insurance bad faith strategies to watch out for

Imagine driving through Louisville on your way to work. With only one more block to go, your day takes an unexpected turn and you end up in a car wreck. Since you have car insurance, you expect your insurance company to meet its obligations according to your policy. Most people have this expectation, but some insurance companies do everything they can to avoid upholding their end of the bargain.

Just like it is your duty to report an accident to your insurer, even if you are not the at-fault driver, it is your insurance company's duty to investigate, negotiate and settle your claim. When an insurance company fails to do this, then it might be using bad faith tactics to avoid completing its duty.

Dragging out the time

A common tactic that insurance companies use to avoid following through on a claim is to take an unreasonable amount of time to start the investigative process. They do this in the hope that the policy holder will simply give up.

Not making a full investigation

The insurance company has a duty to conduct a complete investigation when a policy holder files a claim. If the insurer doesn't even complete the bare minimum, then you might be able to take legal action against your insurer for acting in bad faith.

Deceit

If your insurer fails to provide you with certain information, such as what your coverage includes or claim filing deadlines, it could be doing so in order to avoid paying your claim. Another bad faith tactic that an insurance company might use is failing to provide you with the paperwork you need in order to file a complete and correct claim in time to meet the deadline.

Lowballing

Some insurance companies might try to keep their revenues high by offering lowball settlements for legitimate claims. If your insurance company is offering an unreasonably low settlement amount, it is probably acting in bad faith to avoid paying you any more than necessary.

If you feel like you have been the victim of an insurance company acting in bad faith, remember that you still have options. You might be able to take legal action against the insurance company and fight for the compensation you deserve.