You pay your insurance premiums every month and have the right to receive proper protection for your home and auto in return.
If an uninsured driver hits your car or a fire causes damage to your garage, you expect your insurance company to help with the cost of repairs. Here are four ways your insurer can act in bad faith.
1. Failing to investigate
If you are the victim of a vehicle accident, your insurance agent should come to the site of the crash and examine the damage to your car. Your adjuster should also figure in the repair shop estimates in determining the value of your loss. Denying your claim without doing so is an act of bad faith.
2. Causing unreasonable delays
An insurance company should either approve or deny your claim for property damage within 15 to 60 days. However, the insurer may delay as long as possible waiting to see if you will simply give up on your claim.
3. Following deceptive practices
Your insurer might not reveal that you have coverage for a certain kind of damage to avoid having to pay you. Another deceptive practice is failing to inform you of a claim filing deadline.
4. Refusing to pay
An insurance company is in business to make a profit. They may lowball a settlement offer in order to protect their bottom line. The insurer might also deny your claim for damages even though covered under your policy. Such actions constitute bad faith, and any activity that appears to be the result of bad faith can lead to a lawsuit.