In our last post, we began speaking about the importance of car insurance when an accident occurs, and what can be done when a driver involved in an accident is unable to receive the coverage due to them under their auto insurance policy. As we mentioned, bad faith litigation is one possible avenue of relief for a policyholder facing such a situation.
We’ve already briefly discussed the general legal standards involved in bad faith claims. Here, we want to highlight what a policyholder might want to look out for when working with their insurance company. Having a basic idea of when a breach of good faith and fair dealing looks like can help folks to be more aware when it does happen.
Below are some examples of the types of behaviors that might constitute bad faith. At the very least, these are the types of things policyholders should look out for.
- Delaying, denying or discounting payments without offering a good reason for doing so
- Attempting to settle a claim for less than a reasonable amount
- Failure to promptly settle a claim in cases where the insurance policy is reasonably clear with regard to liability and coverage
- Requiring the policyholder to provide burdensome documentation which is not required under the policy
- Altering the insured’s policy without provide notice and obtaining the consent of the insured
- Treating the insured in a hostile manner
- Advising the insured not to retain an attorney
These are only some of the possible signs that bad faith insurance may be occurring, and it is important for policyholders to keep an eye out for these and similar types of behavior. When something doesn’t seem right, of course, it is never a bad idea to consult an experienced attorney to have the situation evaluated.