Insurance Bad Faith: What Are The Warning Signs?

When you are involved in a car crash, experience damage to property or sustain a covered loss, you expect your insurance company to come through and take care of the resulting bill. But what happens when the insurance company turns its back on you in your hour of need?

Insurance bad faith happens when the insurance carrier unfairly reneges on its obligations to the policyholder by refusing to pay legitimate claims. If you are a victim of insurance bad faith, it helps to know that you can pursue legal recourse against the insurance company. But can you tell when the insurance company is acting in bad faith?

Here are two telltale signs that can help you determine if the insurance company is acting in bad faith.

Poor or zero communication

Timing is always crucial if you are involved in an accident or a situation that requires the insurance company’s attention. If your insurance provider is taking you in rounds or refusing to talk with you, then you need to be alarmed. Lack of communication could be an attempt by the insurance company to frustrate you into accepting less compensation or giving up your claim altogether.

Unjustifiable demands for documentation

The insurance needs to carry out its own investigation. Part of this may involve asking for a variety of documentation like your medical records, car repair costs and more. However, if the insurance company comes up with unreasonable demands, especially if they are asking for documentation that is unrelated to the incident, then you need to ask questions. Perhaps, they are doing this to make the process more complex and difficult, so you give up your claim.

Insurance carriers are expected by law to act in good faith when dealing with their customers. If your insurance carrier is being dishonest or unfair while handling your claim, you need to understand and explore your legal rights.

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