An auto insurance company acts in bad faith when it intentionally fails to fulfill its contractual obligation to a client or acts dishonestly. Below are some forms of auto insurance bad faith.
.No Action at All
When you file an auto accident claim, the insurance company should review your claim and make a decision within a reasonable time. You pay auto insurance premiums so that the insurance company can come to your rescue if an insured risk occurs. In fact, most auto insurance companies specify what they mean by this 'reasonable' time. Therefore, an insurance company is acting in bad faith if you submit your claim, but the company doesn't give you any response.
No Explanation for Denial
It is also bad faith for an insurance company to deny your claim without giving you any explanation for the denial; you have a right to an explanation. You need an explanation so that you can confirm that the denial is warranted. The explanation will also help you navigate future claims. You can even use the reason for the denial as a basis for augmenting your coverage.
If an insurance adjuster disputes your claim, they should investigate the issue at and ascertain the truth of the matter. Say you are claiming that a hit and run driver crashed your car. There are several ways the adjuster can investigate such a claim. At the very least, they should confirm that you reported the accident to the police as soon as it occurred. Therefore, an insurance company that rejects your claim without undertaking any investigation is acting in bad faith.
Misleading Basis for Denial
There are clear reasons auto insurance companies reject claims. For example, your carrier might reject your claim if you have a personal auto insurance policy and you are involved in an auto accident while using your car for livery (to make money). In such a case, the reason for the denial would be valid. Contrast this with an example where an auto insurance adjuster claims that your coverage doesn't cover auto glass replacement even though you have a specifically for glass coverage. Such a misleading reason for denial is clearly an example of bad faith.
Substantially Low Offer
Not all bad faith incidents lead to claim denials. There are cases where an auto insurance company can accept your claim, but offer you a substantially low payment. That would also be a case of bad faith. An example is if your damages are totaling to fifty thousand dollars because your car is a luxury SUV, but the insurer only wants to give you a quarter of that amount.
Consult an attorney if you have an insurance claim, and you suspect bad faith from your insurance carrier. The lawyer will assess the actions or inaction of the carrier and advise you on the way forward.
For more information, contact a personal injury attorney service.Share
29 October 2019
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