Dealing with an insurance company is one of the most difficult parts of a personal injury claim in Texas. Insurance companies are well-known for being for-profit organizations that protect their bottom lines above all else – sometimes, by treating claimants unfairly. In some cases, an insurance carrier may go as far as acting in bad faith to protect its profits. A personal injury attorney in San Antonio can help you navigate your relationship with your insurance company.
What Is Insurance Bad Faith?
Insurance bad faith refers to an insurance company knowingly, intentionally or carelessly mishandling a claim by failing to uphold its legal obligations to policyholders. It refers to insurance company behaviors that are unethical, deceptive, unfair or unlawful. Insurance bad faith undermines the contractual relationship between the insurance provider and the policyholder. It can result in many adverse effects for the insured.
Signs and Examples of Insurance Bad Faith
If you get injured in any type of accident in Texas, you will most likely file an insurance claim to pursue financial compensation for your losses, such as medical bills for any injuries or property damage repairs. After a car accident in San Antonio, for example, you will file a claim with the at-fault driver’s car insurance provider. The insurance company has a legal duty to treat you fairly according to the terms of the policy.
If an insurance provider is guilty of bad faith, it may engage in any of the following practices:
- Rejecting your claim without giving you a valid reason in writing with the denial letter.
- Delaying its investigation of your claim without an acceptable reason.
- Making unreasonable requests for excessive documentation or proof of losses.
- Offering you less than what your claim is worth (a “lowball” settlement offer).
- Pressuring you to accept a low settlement offer.
- Taking an unnecessarily long time to pay out your claim and issue your check once a settlement has been reached.
- Misrepresenting the facts about the policy’s coverage or terms at the time of sale.
- Retaliating or taking adverse actions against you for filing a claim.
- Threatening or intimidating you in any way during the claims process.
It is easier to recognize the signs of insurance bad faith when you understand your rights as a policyholder. Carefully review the language of your insurance policy before filing a claim to understand what it covers, what it does not cover, and its exclusions or provisions. You should also review Texas’s Consumer Bill of Rights to understand your legal rights under the state’s administrative code.
What Is the Legal Remedy for Insurance Bad Faith?
If you suspect that an insurance company is treating you in bad faith during a claim in Texas, you have legal remedies available to you. You may be eligible for financial compensation for this act of wrongdoing. Take the following steps to protect your rights:
- Document everything. Keep copies of all communications between you and the insurance company as evidence.
- Request an internal review. If the insurance adjuster assigned to your case is mistreating you, an internal review may lead to someone new being assigned to your claim.
- File a complaint. Report your problem to the Texas Department of Insurance, which can investigate your claim and may order the insurance company to remedy the problem.
- Consult with a lawyer. You may have grounds to bring a lawsuit against the insurance company for bad faith. A lawyer can guide you through this legal process.
A bad faith claim or lawsuit could result in financial compensation for the damages and inconvenience you suffered due to the insurance company’s wrongful acts, in addition to fair compensation for your original claim. For legal assistance with an insurance bad faith claim in Texas, contact Hill Law Firm Accident and Injury Lawyers to request a free case evaluation.s