Insurance policies are contracts. In exchange for premiums, insurance companies are legally required to handle claims fairly, promptly, and honestly. Unfortunately, insurance companies have a vested interest in minimizing the amount they pay out in claims. As a consequence, they may act in bad faith, wrongfully engaging in delays or denials, or offering far less than you need or are entitled to under your policy.
Recognizing the early warning signs of bad faith efforts by your insurer can help protect your legal rights. At the Law Offices of David J. Karbasian, PC, we have aggressively and successfully fought for the rights of clients who have been subjected to bad faith tactics by an insurance company.
What Insurance Bad Faith Means
In personal injury cases, insurance bad faith occurs when an insurer fails to handle an injury claim in a reasonable manner and in accordance with the provisions of your policy. This may include delaying payment for medical expenses, denying coverage without proper justification, undervaluing injury claims, or misrepresenting policy terms to avoid paying full compensation.
Not every disagreement rises to bad faith. Insurers are allowed to investigate claims and dispute liability when supported by evidence. The actions of your insurer may constitute bad faith when unfair or deceptive practices are used that go beyond the legitimate evaluation of your claim and interfere with your ability to recover fair compensation.
Common Signs Your Insurance Company May Be Acting in Bad Faith
Insurance bad faith rarely involves a single act but typically emerges through a pattern of conduct that delays, frustrates, or unfairly limits a valid claim. At Law Offices of David J. Karbasian, PC, we frequently see the following patterns while reviewing claim files and insurer communications for injured clients.
-
Unreasonable Delays in Processing or Payment
Insurance companies must investigate and resolve claims within a reasonable time. Repeated delays, unexplained silence, or constant requests for the same documents may signal intentional stalling.
-
Denying a Claim Without a Clear or Valid Reason
A denial should be supported by specific policy language and facts. Vague explanations or unsupported conclusions often indicate bad faith.
-
Failure to Properly Investigate the Claim
Insurers are required to conduct a fair and thorough investigation before denying or limiting coverage. Ignoring evidence, failing to interview witnesses, or skipping inspections may constitute bad faith.
-
Lowball Settlement Offers
Offering far less than the documented value of a claim can be a tactic to pressure policyholders into accepting inadequate compensation, especially when medical records or repair estimates clearly support higher damages.
-
Misrepresenting Policy Terms or Coverage
Some insurers improperly claim exclusions apply when they do not or misstate coverage limits. Misrepresenting the terms of a policy to avoid payment is a classic bad faith practice.
-
Ignoring or Failing to Respond to Communications
Consistently unanswered calls, emails, or letters may be more than poor service. Lack of communication can be evidence that the insurer is not acting in good faith.
-
Shifting Blame Without Evidence
Assigning fault without a factual basis or suddenly changing positions to reduce or deny payment may indicate improper claim handling.
What Policyholders Can Do If Bad Faith Is Suspected
Policyholders should keep detailed records of all communications, request written explanations for delays or denials, and avoid giving recorded statements without legal advice. Early legal guidance can prevent further harm and protect the claim. At the Law Offices of David J. Karbasian, PC, we often step in at this stage to stop improper tactics before they cause lasting damage to a claim.
How a Personal Injury Lawyer Can Help
A personal injury lawyer reviews the insurer’s conduct, compares it against legal obligations, and identifies violations. When bad faith is proven, policyholders may be entitled to compensation beyond the original claim, including damages caused by the insurer’s misconduct.
Read Also: Insurance Settlements and Personal Injury Claims
Contact the Law Offices of David J. Karbasian, PC
If you believe an insurance company is treating you unfairly, you do not have to handle it alone. At the Law Offices of David J. Karbasian, PC, we offer free consultations and never charge a legal fee unless we recover compensation for you. We’re available evenings and weekends, and we can meet you at home or in the hospital if needed.
Call 1-877-HOGLAW1 or contact us online to discuss your situation. We’ll hold the insurance company accountable while you focus on moving forward.
