How to Know if an Insurance Company is Acting in Bad Faith
Free ConsultationWhen you’ve been injured in an accident, dealing with an insurance company can feel like navigating a labyrinth. It’s not just the physical and emotional trauma, either. You’re worried about being able to afford your recovery.
This blog is for those of you who might suspect the at-fault driver’s insurance company is not playing fair. Understanding bad faith practices and recognizing the red flags can empower you to take action. We will walk you through the signs of bad faith and equip you with the knowledge to challenge these unscrupulous tactics.
Recognizing Bad Faith: Your Rights Under California Law
When the handshake turns into a cold shoulder, know that California law has your back. Here will show what bad faith looks like, underscore your rights, and assert the legal parameters fencing in those insurers.
Implied Covenant of Good Faith and Fair Dealing
The premise of an implied covenant of good faith and fair dealing is simple: when you enter an insurance contract, there is an unspoken promise that both parties will play fair, giving neither deception nor runaround.
This means insurance companies are legally bound to act with honesty, refrain from deceiving you, and not hamstring the process with red tape. They must handle your claims with the same consideration they would use for their own affairs—without bias, without tricks.
Now, apply this to the gritty reality of personal injury claims. You’ve been in an accident, and filing a claim should not be a second ordeal. The insurance company is expected to investigate your claim thoroughly and quickly, negotiate in good faith, and ultimately pay up what you’re genuinely owed. They are not to hide behind lengthy delays or pitifully undervalue your loss. Why? Because the implied covenant says so.
Statutory Standards for Insurers
The California Insurance Code is not your everyday reading, but it is the rulebook that insurers must abide by. This code dictates the standards insurance companies must uphold when dealing with you, the policyholder. It’s black and white, laid out to ensure fair play in an industry where the scales can seem somewhat tilted.
Under this code, insurance companies have clear mandates:
- They must acknowledge and respond to a claim promptly.
- An insurer has to investigate claims fully and fairly.
- Insurers must not misrepresent facts or policy provisions.
- Insurers can’t offer unreasonably low settlement offers.
Red Flags: When to Suspect Bad Faith
It’s important to recognize red flags early on. What follows is a discussion of common bad faith tactics and examples of what they might look like.
Delay Tactics and Denial Games
A moment’s delay in responding to a claim might be excusable, but when moments become weeks without any real update or progress, the insurer is toeing the line of bad faith. They’re required by law to acknowledge and process your claim within a reasonable time, not leave it on the back burner to simmer away into frustration.
Insurance companies often request multiple layers of paperwork. You might provide everything required initially, like your medical records and expenses. Weeks later, the insurance company requests additional paperwork, some of which you’ve already provided. This is simply their way of delaying the process and burdening you behind a pile of documents.
Now, let’s walk through the scenarios where these tactics come to life:
Scenario One: Carol’s car was sideswiped by a distracted driver. With a clear police report and medical records showing whiplash injuries, she expected a straightforward claims process. The response? A gauntlet of delays. Six weeks went by before she even got an acknowledgment—and then, only after multiple calls. Eight weeks later, no adjuster had been assigned. Ten weeks, and they claimed they hadn’t received her medical records, which she had sent twice. Each delay was a brick in a wall, obstructing her path to compensation.
Scenario Two: David experienced a slip-and-fall at a local store and filed a claim to cover his significant medical expenses. What ensued was a relentless demand for documentation. Initially, he submitted his medical records. Then, he provided detailed descriptions of the incident, even though these details were already included in the initial report. After that, he was asked for proof of income lost due to injury, for which he submitted pay stubs and a letter from his employer. Yet, every few weeks, the insurance company repeated its requests for documents they had already received, each time resetting the process and further challenging David’s patience.
In both cases, the tactics are clear. Delay. Confuse. Repeat. It’s obstruction.
Communication Breakdown
An insurer’s duty is not just to pay out claims but also to communicate clearly and promptly. Lack of timely updates or responses turns an already difficult situation into a quagmire of uncertainty for the injured. If getting a status update from your insurer feels like trying to get a hold of a celebrity—near impossible and always through a third party—something is off.
Communication should be regular, it should be informative, and above all, it should be clear. When insurers become evasive, dodging direct answers or providing non-committal responses, you are not in a dialogue, you’re being played.
Let’s review how these issues manifest through the experiences of two individuals:
Scenario One: Hector sent his claim following a rear-end collision that left him with significant back pain. After the initial submission, he might as well have been sending messages into space for all the good it did. Calls? Unreturned. Emails? Met with auto-responses that promised a reply within 48 hours—a deadline that came and went without word. “We’ll update you as soon as possible,” they said. ‘As soon as possible’ turned into weeks, then months. For Hector, this wasn’t just inconvenient; it was a blockade to his peace of mind and recovery.
Scenario Two: Emily, after enduring a fall due to a defective stairwell, expected empathy, or at least professionalism. What she encountered was evasion. Simple questions like “Has my claim been reviewed?” were met with “We can’t disclose that information at this stage.” Yet the stage never seemed to progress. Each call felt like a looped recording—promises of callbacks that never came.
These scenarios are telling in their commonality—the lack of meaningful exchanges and vagueness. In each case, the tactic is transparent: to frustrate and fatigue claimants into settling for less or abandoning their pursuit entirely.
Lowball Offers and Intimidation Techniques
It’s essential to identify when you’re being undervalued or pressured—a clear sign an insurer may be acting in bad faith. When the compensation on the table seems to insult rather than reflect your suffering, it’s not a misunderstanding—it’s a strategy.
Offers well below reasonable estimates are red flags waving in your face, signaling it’s time to dig in your heels. Quick settlements might sound appealing, but beware: rapid resolutions often come at the cost of adequate recompense.
Consider these hypothetical, yet all too familiar, scenarios:
Scenario One: Grace, recovering from a car accident with mounting medical bills, receives an offer. “We can settle your claim today,” says the insurer, “Just sign here.” The amount? Paltry. It doesn’t even cover her outstanding medical bills, let alone her future ones. Yet, the insurer insists it’s a generous offer.
Scenario Two: Leslie presented her claim, complete with all required documentation, after her car accident. The insurance adjuster responded quickly offering half of the total medical bills, saying it was their standard practice. Leslie knew this was more than a tough negotiation. It was an attempt to intimidate her into accepting less, to make her desperate plight seem overblown.
These scenarios are routine plays in the bad faith handbook. An offer should always be in the ballpark of what’s fair, not a figure scraped from the bottom of the barrel. Insurers banking on your lack of expertise or immediate need for funds deploy these tactics knowingly. They count on your vulnerability, but they don’t expect your resilience.
Investigation Irregularities
An insurer’s duty is to investigate your claim promptly and thoroughly. When corners are cut, and stones are left unturned, you’re seeing bad faith in action—deceptively camouflaged as standard procedure.
Here’s how this might manifest:
Scenario One: Imagine Anna, whose car was T-boned at an intersection. The insurance company responded with such speed to deny her claim, one would think they had time travel capabilities. Their reason? A supposed lack of evidence that Anna had the right-of-way. However, the hasty denial overlooked crucial witness statements corroborating Anna’s account, all because the adjuster did not spend the requisite time to investigate.
Scenario Two: Then there’s Michael, a pedestrian struck by a distracted driver. Despite providing a mound of medical records and proof of the driver’s negligence, the insurer’s response seemed like a reply to someone else’s claim. They ignored Michael’s submitted evidence, focusing instead on minor discrepancies in his statements—clearly scrabbling for reasons to reduce the payout.
These scenarios expose a troubling trend of insurers doing the bare minimum—or less. An investigation must be comprehensive, leaving no relevant fact unexamined. Insurers have a responsibility to look at every angle, scrutinizing the available evidence.
How to Fight Back Against Bad Faith Tactics
Document everything. Every phone call, every email, every snail-mail correspondence with the insurance company should be meticulously recorded. The date, the time, the name of the person you spoke with, and a brief summary of the conversation need to be noted.
Keep a log. Safeguard all the crash reports, medical records, and repair estimates. These are the puzzle pieces that create a clear picture of fair compensation, so treat them as precious commodities.
But at some point, you may need reinforcements. Understand that bad faith insurance practices are formidable opponents that require more than just a strong will; they demand specialized legal know-how. Enter your attorney, not just as your advocate, but as your strategist, your negotiator—your champion.
Lawyers are fluent in the language of litigation, a dialect that insurance companies comprehend all too well. A lawyer signals you mean business and you know your rights. It underscores that any attempts at low-balling or stonewalling will be met with staunch resistance. And when necessary, lawyers don’t just threaten a lawsuit—they follow through, with all the procedural and evidentiary muscle to back it up.
Here’s what a lawyer could do for you:
- Analysis: Your lawyer will dissect your policy and the insurer’s actions. They spot inconsistencies, identify breaches, and can sniff out bad faith like a bloodhound.
- Negotiation: With deft negotiation skills, lawyers don’t ask for what is fair—they demand it. They are articulators of your plight, driving home the point that you’re not a file number but a human being.
- Litigation: Should the insurers remain obstinate, your lawyer is ready to escalate. They may file a lawsuit, argue motions, and zealously represent you in court.
- Settlement: Often, the mere presence of legal representation precipitates a more reasonable settlement offer. Your lawyer evaluates these offers with a critical eye, ensuring it meets your needs—not just now, but for the future.
- Peace of Mind: With a lawyer at the helm, you can focus on healing, secure in the knowledge that someone is out there, fighting tooth and nail for your rightful reparation.
If you’re facing resistance from the at-fault driver’s insurance company, it’s essential to remember you are not alone. At PARRIS Law Firm, we stand as your advocate, ready to ensure that insurance companies honor their duty. If any of the situations highlighted here echoes your experience, reach out. Contact us for a consultation and let’s turn the tide together.
Here are more articles related to the same topic
How to Know if an Insurance Company is Acting in Bad Faith
When you’ve been injured in an accident, dealing with an insurance company can feel like navigating a labyrinth. It’s not just the physical and emotional trauma, either. You’re worried about being able to afford your recovery.
This blog is for those of you who might suspect the at-fault driver’s insurance company is not playing fair. Understanding bad faith practices and recognizing the red flags can empower you to take action. We will walk you through the signs of bad faith and equip you with the knowledge to challenge these unscrupulous tactics.
Recognizing Bad Faith: Your Rights Under California Law
When the handshake turns into a cold shoulder, know that California law has your back. Here will show what bad faith looks like, underscore your rights, and assert the legal parameters fencing in those insurers.
Implied Covenant of Good Faith and Fair Dealing
The premise of an implied covenant of good faith and fair dealing is simple: when you enter an insurance contract, there is an unspoken promise that both parties will play fair, giving neither deception nor runaround.
This means insurance companies are legally bound to act with honesty, refrain from deceiving you, and not hamstring the process with red tape. They must handle your claims with the same consideration they would use for their own affairs—without bias, without tricks.
Now, apply this to the gritty reality of personal injury claims. You’ve been in an accident, and filing a claim should not be a second ordeal. The insurance company is expected to investigate your claim thoroughly and quickly, negotiate in good faith, and ultimately pay up what you’re genuinely owed. They are not to hide behind lengthy delays or pitifully undervalue your loss. Why? Because the implied covenant says so.
Statutory Standards for Insurers
The California Insurance Code is not your everyday reading, but it is the rulebook that insurers must abide by. This code dictates the standards insurance companies must uphold when dealing with you, the policyholder. It’s black and white, laid out to ensure fair play in an industry where the scales can seem somewhat tilted.
Under this code, insurance companies have clear mandates:
- They must acknowledge and respond to a claim promptly.
- An insurer has to investigate claims fully and fairly.
- Insurers must not misrepresent facts or policy provisions.
- Insurers can’t offer unreasonably low settlement offers.
Red Flags: When to Suspect Bad Faith
It’s important to recognize red flags early on. What follows is a discussion of common bad faith tactics and examples of what they might look like.
Delay Tactics and Denial Games
A moment’s delay in responding to a claim might be excusable, but when moments become weeks without any real update or progress, the insurer is toeing the line of bad faith. They’re required by law to acknowledge and process your claim within a reasonable time, not leave it on the back burner to simmer away into frustration.
Insurance companies often request multiple layers of paperwork. You might provide everything required initially, like your medical records and expenses. Weeks later, the insurance company requests additional paperwork, some of which you’ve already provided. This is simply their way of delaying the process and burdening you behind a pile of documents.
Now, let’s walk through the scenarios where these tactics come to life:
Scenario One: Carol’s car was sideswiped by a distracted driver. With a clear police report and medical records showing whiplash injuries, she expected a straightforward claims process. The response? A gauntlet of delays. Six weeks went by before she even got an acknowledgment—and then, only after multiple calls. Eight weeks later, no adjuster had been assigned. Ten weeks, and they claimed they hadn’t received her medical records, which she had sent twice. Each delay was a brick in a wall, obstructing her path to compensation.
Scenario Two: David experienced a slip-and-fall at a local store and filed a claim to cover his significant medical expenses. What ensued was a relentless demand for documentation. Initially, he submitted his medical records. Then, he provided detailed descriptions of the incident, even though these details were already included in the initial report. After that, he was asked for proof of income lost due to injury, for which he submitted pay stubs and a letter from his employer. Yet, every few weeks, the insurance company repeated its requests for documents they had already received, each time resetting the process and further challenging David’s patience.
In both cases, the tactics are clear. Delay. Confuse. Repeat. It’s obstruction.
Communication Breakdown
An insurer’s duty is not just to pay out claims but also to communicate clearly and promptly. Lack of timely updates or responses turns an already difficult situation into a quagmire of uncertainty for the injured. If getting a status update from your insurer feels like trying to get a hold of a celebrity—near impossible and always through a third party—something is off.
Communication should be regular, it should be informative, and above all, it should be clear. When insurers become evasive, dodging direct answers or providing non-committal responses, you are not in a dialogue, you’re being played.
Let’s review how these issues manifest through the experiences of two individuals:
Scenario One: Hector sent his claim following a rear-end collision that left him with significant back pain. After the initial submission, he might as well have been sending messages into space for all the good it did. Calls? Unreturned. Emails? Met with auto-responses that promised a reply within 48 hours—a deadline that came and went without word. “We’ll update you as soon as possible,” they said. ‘As soon as possible’ turned into weeks, then months. For Hector, this wasn’t just inconvenient; it was a blockade to his peace of mind and recovery.
Scenario Two: Emily, after enduring a fall due to a defective stairwell, expected empathy, or at least professionalism. What she encountered was evasion. Simple questions like “Has my claim been reviewed?” were met with “We can’t disclose that information at this stage.” Yet the stage never seemed to progress. Each call felt like a looped recording—promises of callbacks that never came.
These scenarios are telling in their commonality—the lack of meaningful exchanges and vagueness. In each case, the tactic is transparent: to frustrate and fatigue claimants into settling for less or abandoning their pursuit entirely.
Lowball Offers and Intimidation Techniques
It’s essential to identify when you’re being undervalued or pressured—a clear sign an insurer may be acting in bad faith. When the compensation on the table seems to insult rather than reflect your suffering, it’s not a misunderstanding—it’s a strategy.
Offers well below reasonable estimates are red flags waving in your face, signaling it’s time to dig in your heels. Quick settlements might sound appealing, but beware: rapid resolutions often come at the cost of adequate recompense.
Consider these hypothetical, yet all too familiar, scenarios:
Scenario One: Grace, recovering from a car accident with mounting medical bills, receives an offer. “We can settle your claim today,” says the insurer, “Just sign here.” The amount? Paltry. It doesn’t even cover her outstanding medical bills, let alone her future ones. Yet, the insurer insists it’s a generous offer.
Scenario Two: Leslie presented her claim, complete with all required documentation, after her car accident. The insurance adjuster responded quickly offering half of the total medical bills, saying it was their standard practice. Leslie knew this was more than a tough negotiation. It was an attempt to intimidate her into accepting less, to make her desperate plight seem overblown.
These scenarios are routine plays in the bad faith handbook. An offer should always be in the ballpark of what’s fair, not a figure scraped from the bottom of the barrel. Insurers banking on your lack of expertise or immediate need for funds deploy these tactics knowingly. They count on your vulnerability, but they don’t expect your resilience.
Investigation Irregularities
An insurer’s duty is to investigate your claim promptly and thoroughly. When corners are cut, and stones are left unturned, you’re seeing bad faith in action—deceptively camouflaged as standard procedure.
Here’s how this might manifest:
Scenario One: Imagine Anna, whose car was T-boned at an intersection. The insurance company responded with such speed to deny her claim, one would think they had time travel capabilities. Their reason? A supposed lack of evidence that Anna had the right-of-way. However, the hasty denial overlooked crucial witness statements corroborating Anna’s account, all because the adjuster did not spend the requisite time to investigate.
Scenario Two: Then there’s Michael, a pedestrian struck by a distracted driver. Despite providing a mound of medical records and proof of the driver’s negligence, the insurer’s response seemed like a reply to someone else’s claim. They ignored Michael’s submitted evidence, focusing instead on minor discrepancies in his statements—clearly scrabbling for reasons to reduce the payout.
These scenarios expose a troubling trend of insurers doing the bare minimum—or less. An investigation must be comprehensive, leaving no relevant fact unexamined. Insurers have a responsibility to look at every angle, scrutinizing the available evidence.
How to Fight Back Against Bad Faith Tactics
Document everything. Every phone call, every email, every snail-mail correspondence with the insurance company should be meticulously recorded. The date, the time, the name of the person you spoke with, and a brief summary of the conversation need to be noted.
Keep a log. Safeguard all the crash reports, medical records, and repair estimates. These are the puzzle pieces that create a clear picture of fair compensation, so treat them as precious commodities.
But at some point, you may need reinforcements. Understand that bad faith insurance practices are formidable opponents that require more than just a strong will; they demand specialized legal know-how. Enter your attorney, not just as your advocate, but as your strategist, your negotiator—your champion.
Lawyers are fluent in the language of litigation, a dialect that insurance companies comprehend all too well. A lawyer signals you mean business and you know your rights. It underscores that any attempts at low-balling or stonewalling will be met with staunch resistance. And when necessary, lawyers don’t just threaten a lawsuit—they follow through, with all the procedural and evidentiary muscle to back it up.
Here’s what a lawyer could do for you:
- Analysis: Your lawyer will dissect your policy and the insurer’s actions. They spot inconsistencies, identify breaches, and can sniff out bad faith like a bloodhound.
- Negotiation: With deft negotiation skills, lawyers don’t ask for what is fair—they demand it. They are articulators of your plight, driving home the point that you’re not a file number but a human being.
- Litigation: Should the insurers remain obstinate, your lawyer is ready to escalate. They may file a lawsuit, argue motions, and zealously represent you in court.
- Settlement: Often, the mere presence of legal representation precipitates a more reasonable settlement offer. Your lawyer evaluates these offers with a critical eye, ensuring it meets your needs—not just now, but for the future.
- Peace of Mind: With a lawyer at the helm, you can focus on healing, secure in the knowledge that someone is out there, fighting tooth and nail for your rightful reparation.
If you’re facing resistance from the at-fault driver’s insurance company, it’s essential to remember you are not alone. At PARRIS Law Firm, we stand as your advocate, ready to ensure that insurance companies honor their duty. If any of the situations highlighted here echoes your experience, reach out. Contact us for a consultation and let’s turn the tide together.
Bad Faith Insurance Tactics to Look Out for When Involved in a Car Accident Claim
In the aftermath of a car accident, dealing with insurance companies can be a daunting task. This blog aims to shed light on bad faith insurance practices where some insurers try to unjustly minimize their payouts. Understanding these tactics is key to safeguarding your rights and ensuring you receive the compensation owed to you.
At PARRIS Law Firm, we have seen these tactics firsthand, and we stand ready to support you in this fight. Our proficiency in personal injury law, particularly in California, arms us with the tools to navigate this complex landscape. Our goal is to provide you with valuable insights so that you can recognize and counteract such tactics, helping you secure the justice you deserve.
Understanding Bad Faith Insurance Claims
A bad faith insurance claim is when an insurance company fails to fulfill the obligations outlined in your policy or doesn’t abide by the laws governing insurance practices. It’s not a mere misstep or an honest mistake, but a deliberate and dishonest approach to deny, delay, or diminish your rightful claim.
In California, insurance companies have a legal duty of good faith and fair dealing, which means they must act in a reasonable and fair manner towards their policyholders and anyone injured by their policyholders. They must promptly investigate, process, and pay legitimate claims. When they deviate from this path, it’s called acting in bad faith.
When insurance companies fail to adhere to these obligations, they’re not just bending the rules—they’re breaking them. And when they break them, they are acting in bad faith. Recognizing these tactics is your first line of defense in ensuring that your rights are protected and that you receive the compensation you deserve after a car accident.
Common Bad Faith Tactics in Car Accident Claims
Navigating the insurance claim process following a car accident can be challenging, especially when you’re contending with bad faith tactics. Let’s discuss six common ploys and understand how they can negatively affect your claim.
- Unnecessary Delays: Time is of the essence in a car accident claim. However, some insurance companies may intentionally drag out the claim process. They might take an unreasonably long time to respond to your claim or to investigate the accident. This delay not only prolongs your financial uncertainty but also adds to your stress during recovery. It’s a bad faith tactic because it violates the insurer’s obligation to promptly process claims.
- Denying a Claim without Reason: If an insurer denies your claim without providing a clear and specific reason, it’s a red flag for bad faith. A denial can leave you struggling with medical bills and repair costs, creating financial hardship. Insurance companies are legally obliged to reasonably explain denying a claim, and they must provide this explanation in writing.
- Misrepresenting Policy Language or Laws: Some insurers may distort the terms of your policy or misinterpret laws to avoid paying your claim. This misinformation can lead to unjust claim denials or reduced payouts. It’s a bad faith tactic as it breaches the insurer’s duty to act honestly and fairly.
- Inadequate Investigation: A thorough and timely investigation is crucial to determine the validity of a claim. However, an insurer acting in bad faith might conduct a cursory or biased investigation to undervalue or deny your claim. They may also delay investigating so long that evidence goes missing. This tactic deprives you of fair compensation and contravenes the insurer’s obligation to perform a comprehensive investigation.
- Unreasonably Low Settlement Offers: If an insurer offers a settlement that doesn’t adequately cover your losses, it’s likely a bad faith tactic. Accepting such an offer can leave you out-of-pocket for medical expenses, lost wages, and other damages. Insurance companies have a duty to provide reasonable compensation for valid claims.
- Refusing to Defend a Lawsuit: If you’re sued over a car accident, your insurance company has a duty to defend you. Failing to do so can expose you to significant legal costs and potential liability. This refusal is a bad faith practice because it violates the insurer’s contractual obligations.
Each of these tactics can inflict financial strain and emotional distress, hindering your recovery process. They are considered bad faith practices because they violate the standards of fair dealing and good faith that insurers must uphold under California law.
How These Bad Faith Insurance Tactics Affect You
From your wallet to your mental health, to the overall recovery process, these unscrupulous practices can take a toll.
The Financial Hit: Car accidents come with a hefty price tag. Medical bills, vehicle repairs, and lost income due to time off work can swiftly accumulate into a mountain of debt. When an insurance company engages in bad faith tactics, the financial burden can intensify. Delayed payouts, denied claims, or paltry settlement offers can leave you shouldering these costs alone. The result? A financial strain that can destabilize your economic security.
Emotional Stress: Dealing with the aftermath of a car accident is already stressful. Add in a relentless battle with an insurance company, and the emotional toll can skyrocket. Unnecessary delays, convoluted policy misinterpretations, and baseless claim denials can lead to heightened feelings of anxiety, frustration, and helplessness. This added stress can exacerbate physical injuries and the overall healing process.
Impediment to Recovery: Speaking of healing, bad faith tactics can throw significant roadblocks in your recovery journey. Insufficient funds may delay necessary medical treatments or force you to opt for less effective but cheaper alternatives. This not only prolongs your recovery but also impacts your overall well-being and quality of life.
So why do insurance companies resort to these tactics? The answer is simple yet harsh—it’s about their bottom line. By minimizing payouts, they maximize profits. But don’t let this deter you. The insurance landscape may seem intimidating, but knowledge is your best ally.
How to Identify Bad Faith Insurance Tactics
Recognizing bad faith insurance tactics is crucial. Here are some telltale signs to watch out for:
- Unjustified Delays: If responses or claim processing are dragging on without reasonable cause, it’s time to raise an eyebrow.
- Claim Denials Lacking Explanation: A denial without justification is a red flag. You’re entitled to a clear reason for any denied claim.
- Policy or Law Misinterpretation: If your policy language seems twisted or laws appear misrepresented, be vigilant. It could be an attempt to evade claim payment.
- Incomplete Investigation: A hurried or biased investigation can lead to unjust claim denials or undervalued settlements.
- Lowball Settlement Offers: If the settlement proposed doesn’t align with your losses, it’s an issue. They’re trying to get off the hook for cheap.
- Refusal to Defend a Lawsuit: If you’re facing a lawsuit and your insurer won’t stand up for you, it’s a serious breach of duty.
- Ignoring Your Communications: If your calls, emails, or letters go unanswered, it’s not just rude, it’s possibly a sign of bad faith.
- Changing Your Claim Adjuster Repeatedly: If your adjuster keeps changing, causing delays and confusion, it could be a tactic to frustrate you into settling.
- Requesting Unnecessary Documentation: Asking for irrelevant paperwork could be a stalling strategy to delay your claim.
- Misquoting Your Policy: If the insurer is quoting policy terms that seem incorrect or misleading, they may try to underpay your claim.
- Making Threatening Statements: Any attempts to intimidate you into accepting lower settlements is not just unethical, it’s likely bad faith.
- Settlement Offers Without Reviewing All Medical Records: If an offer comes before all medical records have been reviewed, they may be rushing to close the claim.
What to Do If You’re a Victim of Bad Faith Insurance Tactics
If you find yourself caught in the crossfire of bad faith insurance tactics, don’t despair. Here’s a roadmap to navigate through this maze.
Step 1: Document Everything: Like footprints in the sand, every interaction with the insurance company leaves a trail. Keep track of all correspondences, record dates, times, and key points of discussions. This paper trail can be vital evidence if you need to prove bad faith.
Step 2: Understand Your Policy: Knowledge is power. Familiarize yourself with your policy terms, conditions, and exclusions. This understanding equips you to challenge any misinterpretation the insurer may throw your way.
Step 3: Consult a Personal Injury Lawyer: An experienced personal injury lawyer can be your compass in this tumultuous journey. They can review your case, advice on the best course of action, and represent your interests.
At PARRIS Law Firm, we’ve battled bad faith insurance tactics head-on and emerged victorious, securing millions in compensation for our clients. We understand the ins and outs of insurance law, and we know how to counteract these unscrupulous tactics effectively.
Taking Decisive Action
If you’re caught in the whirlwind of bad faith insurance tactics, take a deep breath. You’re not alone in this fight. PARRIS Law Firm is ready and willing to step into the ring for you. Our team of dedicated personal injury lawyers has the knowledge, experience, and tenacity to tackle these underhanded tactics head-on.
If you believe you’re a victim of bad faith insurance tactics, contact PARRIS Law Firm today. We’re here to guide you through this storm, one step at a time.
What Insurance Companies Won’t Tell You After a Car Accident
Car accidents can be traumatic, and dealing with insurance companies afterwards often adds to the stress. If you’re a victim of a car accident in California, it’s crucial to understand the tactics insurance companies use to minimize their payouts. This blog aims to shed light on what insurance companies won’t tell you after an accident, empowering you to navigate this challenging situation and assert your rights for fair compensation. Knowledge is power, especially when dealing with insurance companies post-accident.
The Initial Response from Insurance Companies
After a car accident, the initial response from both your insurance company and that of the at-fault driver may seem supportive and reassuring. They might reach out to you promptly, seemingly expressing concern for your well-being and promising to help you through the process. But it’s crucial to remember: insurance companies are businesses first, and their primary goal is to save money.
Insurance companies employ trained adjusters whose job is to evaluate the situation and minimize the payout. While they may appear friendly and compassionate, their underlying aim is to protect the company’s bottom line. This means they’ll listen to your account of the accident, ask for details, and even sympathize with your situation. But all the while, they’re trying to gather information to potentially use against you in reducing your claim.
The at-fault driver’s insurance company may even offer an immediate settlement. While this might seem like a quick resolution to your troubles, it’s often a tactic to close the case before you realize the full extent of your injuries or damages. Accepting this initial offer could leave you with expenses that far exceed the settlement amount and, since you’ve signed a release, you won’t be able to go back to the insurance company requesting more funds.
It’s also important to note that insurance companies may record conversations and use your words against you later. So, while it’s necessary to cooperate, be cautious about what you say and avoid providing more information than required.
Breakdown of What Insurance Companies Won’t Tell You
Insurance companies are skilled at managing claims in a way that protects their interests. Here’s what they won’t tell you after a car accident:
- Their primary goal is to save money: As much as they offer support, insurance companies’ main objective is to minimize their payouts. They’re not on your side; they’re on the side of their financial interests.
- The initial settlement offer is often low: Once again, the first settlement offer is usually far below what you’re entitled to. It’s a tactic to close the claim quickly and cheaply.
- You don’t have to accept the first offer: Despite what they might imply, you’re under no obligation to accept the first settlement offer. You have the right to negotiate or reject it outright.
- Your statements can be used against you: Any information you provide, even casually, can be used to devalue your claim. Be cautious about what you share.
- You have the right to legal representation: Insurance companies often discourage victims from hiring attorneys because they know it could lead to higher settlements. But remember, you have the right to legal representation.
How to Deal with Insurance Companies
Navigating conversations with insurance companies after a car accident can be daunting. Here’s how you can assert your rights and seek fair compensation:
- Be cautious with your words: Anything you say can be used against you. Provide only the necessary information about the accident and avoid making any definitive statements about injuries or fault.
- Don’t rush to settle: Insurance companies often try to close claims quickly with a low-ball offer. Take your time to understand the full extent of your injuries and damages before considering any settlement offers.
- Stand up for your rights: You have the right to reject initial settlement offers and negotiate for a fair amount. Don’t let insurance companies pressure you into accepting less than you deserve.
- Keep meticulous records: Document everything related to the accident and your injuries. This includes medical bills, repair costs, and any communication with the insurance companies. These records will be crucial in supporting your claim.
- Consult a lawyer: Legal representation can make a significant difference in your claim. Lawyers understand the tactics insurance companies use and can help you navigate through the process.
The Importance of Legal Representation
Attorneys help to provide comprehensive legal support to clients involved in personal injury cases. They conduct thorough investigations of the accident, gathering pertinent evidence, such as medical reports, accident scenes, and witness testimonies to substantiate the claim.
Lawyers also serve as your advocate, communicating on your behalf with involved parties such as insurance adjusters, opposing counsel, and, when necessary, the court. They help interpret complex legal jargon and procedural rules, ensuring that your rights are not compromised.
Lawyers can enlist the aid of expert witnesses to strengthen your case, which can be particularly valuable when assessing long-term impacts of injuries or calculating nuanced aspects of damages. Lawyers work diligently to build a persuasive and robust case, allowing their clients to focus on recovery while they strive to secure the maximum possible compensation.
When you partner with a skilled California personal injury attorney, they guide you through the complex legal process, help you avoid common pitfalls, accurately evaluate your claim, and negotiate assertively on your behalf.
Let’s explore this through three fictional examples:
- John’s Story: John, a California resident, was involved in a severe car accident that resulted in significant medical bills and loss of wages. The at-fault driver’s insurance company quickly offered a settlement that, at first glance, seemed substantial. On the brink of accepting it, John consulted a personal injury lawyer. The lawyer, experienced in dealing with such cases, immediately identified that the offer didn’t fully account for John’s long-term medical needs, potential future loss of earnings, and emotional distress. After rigorous negotiations, the lawyer secured a settlement that was triple the initial offer. Without legal representation, John could have accepted the initial low-ball offer, leaving him struggling with future medical expenses and financial instability.
- Jane’s Dilemma: Jane was involved in a minor car accident that resulted in some property damage and minor injuries. Initially, she thought her case was too small to involve a lawyer. However, after consulting an attorney, she discovered she was entitled to compensation not just for her medical bills and car repairs, but also for the diminished value of her car, her emotional distress, and even her lost time from work. Without a lawyer, Jane would likely have settled for covering just her immediate medical bills and car repair costs, unaware of the other damages she could claim.
- Robert’s Case: Robert suffered debilitating injuries in a car crash and could not work or even communicate effectively with the insurance company. His lawyer was able to step in and handle all communications, ensuring that Robert’s condition was not exploited and his claim was not undervalued. The lawyer also took care of gathering all necessary evidence, consulting medical experts, and building a robust case that eventually led to a sizable settlement that covered Robert’s current and future healthcare needs, lost income, and pain and suffering. Without a lawyer, Robert might have been overwhelmed by the complex claim process and accepted an inadequate settlement, jeopardizing his future well-being.
These stories highlight the significant benefits of hiring a personal injury lawyer after a car accident. Legal representation not only alleviates the burden of dealing with insurance companies but also helps give you the chance to receive the full compensation you’re entitled to. Your journey towards recovery doesn’t have to be faced alone—a knowledgeable attorney can guide you every step of the way.
Take Control of Your Future: Seek Legal Help Now
In the aftermath of a car accident, you may feel overwhelmed and unsure about your next steps. Remember, you’re not alone. The road to recovery can be challenging, but with the right legal help, you can navigate it with confidence.
If you’ve been injured in a car accident in California, don’t let insurance companies dictate your future. Stand up for your rights. You deserve fair compensation for your injuries and losses, and a skilled personal injury attorney can diligently work toward achieving this goal.
At PARRIS Law Firm, we understand the physical, emotional, and financial toll a car accident can take on your life. Our team is committed to advocating for your rights and fighting for the compensation you deserve. Don’t let the complexities of insurance claims and legal jargon deter you. Allow us to shoulder that burden so you can focus on what truly matters—your recovery.
It’s your future at stake. Don’t delay. Contact PARRIS Law Firm today and let us help you reclaim control of your life.
9 Bad Faith Insurance Practices to Look Out For
Insurance companies don’t always tell the truth. Despite what their advertisements and representatives may claim, insurance companies are in the business of making money. As a result, paying out claims following an accident is not always their top priority.
When you or a loved one suffers injuries in a car accident, you might expect the at-fault party’s insurance company to pay your claim and cover the cost of your recovery. Unfortunately, many of these firms may deceitfully try to lower the amount they pay you, choosing instead to benefit their bottom line.
As a victim of a terrible accident, you may think that the insurance company’s settlement offer, however low it may be, is your only option.
Think again.
When someone else’s negligence has hurt you, you have a legal right to file a bad-faith insurance claim to seek compensation that allows you to rebuild your life. To help you recognize when an insurance company is working against you, we’ve compiled a list of common bad-faith tactics insurance companies use to deny policyholders their rightful claims.
Dealing With Insurance Adjusters After An Accident Can Be Difficult.
Bad Faith Insurance Practices
Before we address these tactics, we must first define “bad faith.”
What Is A Bad Faith Insurance Claim?
An insurance company acts in bad faith when they deceitfully avoid their contractual obligations to policyholders or third parties. If you choose to take legal action against a deceitful insurance company, you can make a bad faith insurance claim.
Each policy sold by an insurance company is a contract. In exchange for monthly or annual premiums, the insurance company pays out money to a victim if certain situations occur. For example, if you get into a car accident caused by another driver, the other driver’s insurance provider would have to pay you under the terms of their insured’s liability policy.
This business model assumes that most policyholders will not be involved in accidents because insurance companies lose money every time they pay out on a claim. The fewer claims they pay, the more money these companies save. Therefore, corrupt insurance companies will strategize to make claimants—victims like you—go away.
Recognizing Bad Faith Insurance Practices
If you ever get involved in a car accident, you’ll need to be able to recognize these deceitful insurance tactics. Don’t get cheated out of the recovery you deserve. Here are nine of the most common bad faith tactics our firm has seen insurance companies make.
1. Denying a Claim Without a Reason
In most instances, insurance companies must provide a reason for denying a claim. Unfortunately, this doesn’t always happen. Some unscrupulous insurance companies have internal policies of denying all claims upon submission, regardless of their validity. Their hope is that the claimant will go away and not appeal.
2. Delaying a Decision
Other times insurance companies might take their time deciding on your claim. This can be detrimental to your health because your medical care may depend on the approval of your claim. If the insurance company delays, your medical care may also be delayed. Bad faith may be the cause of this lag.
3. Making a Lowball Offer
An insurance company “lowballs” you when they attempt to settle your case by offering you far less money than what your case is worth. Insurance companies might do this even if they recognize your claim as valid.
This bargaining tactic is extremely deceptive. Many victims assume they have to accept the first offer an insurance company gives, even if it is lower than expected. This is never a good idea. When someone does accept, the offer is final—victims can’t negotiate a higher settlement once they’ve taken a low one.
Insurance companies may train their adjusters to take advantage of victims by offering lowball settlements to claimants who are not represented by an attorney. Don’t be deceived—call a personal injury lawyer the moment you suspect bad faith.
4. Refusing to Pay a Valid Claim
When you submit your claim to the insurance company, they will require documentation and evidence to support your claim. If you provide all of this information and they still deny your claim, the insurance company may be acting in bad faith.
On the other hand, if you don’t provide all of the information requested, they may deny your claim outright instead of asking you to correct your mistake. This could be a bad faith tactic, too—one you can quickly correct by partnering with an attorney.
5. Failing to Conduct a Prompt Investigation
When an insurance company gets notice of an accident, it must thoroughly investigate the incident within a reasonable time frame. In other words, it can’t simply send an agent to the accident scene to snap a quick picture and leave. The insurance company must investigate to determine the cause of the accident. If it fails to do so, it may be acting in bad faith.
6. Making Threatening Statements
After an accident, a victim may already be stressed and anxious. Threatening statements from an insurance adjuster add to this mounting anxiety. The insurance adjuster may tell you that you were really at fault for the accident or that you don’t deserve compensation for your injuries. These statements are obviously indecent, but they could also be bad faith—a stressed and anxious victim is unlikely to demand a higher settlement offer.
7. Refusing to Provide You with Documentation
Insurance companies must respond to reasonable requests for documentation that support their claims-related decisions. However, not all insurance companies are willing to comply. Whether they’re hiding something or simply employing poor business practices, refusing to respond to a reasonable request for documentation of a claims decision could be a bad faith insurance tactic.
8. Delaying Payment
Even if your claim is approved, the insurance company may be slow to get your payment to you. Insurance companies must make a payment within a reasonable period after they determine your claim is valid. While the length of “reasonable time” could be up for debate, if you haven’t received a check within one month of your claim being approved, you should suspect bad faith.
9. Misrepresenting the Law or the Facts of Your Case
An insurance adjuster may lie to you and tell you that:
- “Your injuries aren’t that severe.”
- “You need to settle today.”
- “We are accepting liability.”
- “You must give us a recorded statement; you don’t have a choice.”
- “You must sign this release form, and you cannot have a lawyer review it.”
- “You don’t need to hire a lawyer.”
That last one is perhaps the most egregious lie we’ve heard insurance adjusters tell personal injury victims. Hiring a lawyer with experience in the insurance world may be the best thing you can do for your chances of maximizing recovery. They know this, too—that’s why they try to get you to settle without representation. Hiring an experienced personal injury attorney after your car accident can mean the difference between a return to quasi-normalcy and financial peril.
Who Can Bring a Bad Faith Claim Against an Insurance Company?
Unfortunately, insurance companies can act in bad faith toward both car accident victims and drivers at fault. For this reason, both parties may be able to bring a bad faith claim against an insurance company.
What Is A First-Party Bad Faith Claim?
When an insured makes a claim for payment from his or her own insurance policy, that is called a “first-party” insurance claim. When an insurer uses bad faith tactics against their insured’s claim for policy benefits, the policyholder may have a first-party bad faith claim against their insurer.
Here are some examples of situations where you might have a first-party bad faith claim.
- Another driver totals your car in a hit and run, and your insurance company refuses to cover your damages under your collision insurance.
- Your car is stolen, and your insurance company unreasonably delays paying out the claim you make under your comprehensive coverage.
- Your house suffers a loss from water damage and your insurance company refuses to pay for the repairs.
In all three examples, your own insurance company is responsible for paying you. If your insurer acts in bad faith, you may have a first-party bad faith claim against them.
What Is A Third-Party Bad Faith Claim?
When you file a claim with another person’s insurance company because their actions caused your injury, you would be filing a “third-party” insurance claim. You are the third party, and the person that hurt you is the insured. Third-party bad faith claims occur when an insurance company refuses or delays in compensating the third party for an accident caused by their insured.
For example: let’s say you were seriously hurt in a T-bone accident, and you hire a law firm to recover compensation from the at-fault driver. The at-fault driver’s insurance company refuses to settle and you file a lawsuit. The case then goes to trial where you are awarded a verdict that far exceeds that at-fault driver’s policy limit.
In this instance, the insurance company’s refusal to settle exposed the at-fault driver to financial ruin, as he is now personally responsible to pay the amount of the verdict in excess of the policy limits. He (the insured) may have a bad faith claim against his insurance company for failing to settle the claim against him within his policy limits. If the insurance company acted in bad faith, it will be liable to pay the entire amount of the verdict, including the amount in excess of the policy limits. The insured can then use this claim to force the insurance company to pay the total amount of your verdict.
Combat Bad Faith Tactics with PARRIS Law Firm’s Help
Bad faith tactics by insurance companies are flat-out wrong. Whether insurance adjusters deny your claim, delay your payment, or outright lie to you, you may have a legal claim against the insurance company for bad faith.
If an insurance company’s bad faith tactics are egregiously malicious, fraudulent, or oppressive, the victim might even be able to recover punitive damages from the insurance company.
Contact PARRIS today to defend yourself against these tactics. We have the skill, resources, and inside knowledge to defend you against insurance companies and secure the compensation you deserve.
