An insurance company is there to help you protect your assets, such as property, vehicle, etc. However, there are times when insurance bad faith can occur. That happens when the insurer fails to meet what they have promised you.
So, if you think your insurer is acting in bad faith, you have come to the right place. Here are all the telltale signs you must look for.
1. Delaying Payments
One of the top ways insurers act in bad faith is by delaying payments. That is because the longer they delay your payments, the less amount you will get, as your bills will start piling up. In the end, you will be desperate and accept anything they offer.
Besides that, insurers also stop paying money because if they pay you the money, then they will not be earning interest. So, they can use the tactic of delaying payments to reduce payment or keep earning interest.
2. Denying Your Claim Without A Genuine Reason
Insurance bad faith can also happen when the insurer denies your claim without offering you a genuine reason. Even if they give you a reason, it will not be adequate, or it will not make sense to you. Insurers also cite parts of the policy that is challenging to understand so they can justify their claim denial.
When this happens, it is important to get a professional attorney to help you out. They will let you know if your claim is being denied because of a genuine reason or not after looking at your policy.
3. Lack Of Communication
One of the top ways insurance bad faith occurs is when the insurance company avoids communicating with the customer. They do this when they want to avoid any extra responsibility from their customers. For example, they can fail to move forward with the investigation or deny that they have received your documentation.
An insurance company acting in good faith openly communicates with its customers. You will get answers to all your questions, and they will help you out in every way possible. That is when you know that you have found a good insurer.
4. Inadequate Settlement
When insurers don’t want to pay customers, they can offer a settlement that will be much less than what you deserve. For example, they will offer you much less than your bills and might not even consider any other type of damage. They do this when they don’t want to offer full compensation to the victims.
You must understand what you deserve so that you can accept a fair offer. You should never accept anything less than what you deserve from the insurance company.
Final Words
These are all the signs you must look at when understanding insurance bad faith. If your insurance company is showing all or some of these signs, it is time to change your insurer. It might take time, but it will be worth it to find a great one that can act in good faith.
