What Is Bad Faith?
An Explanation of Insurance Bad Faith in Car Accident Cases
This is a legal term to describe wrongful actions on behalf of an insurance company. Insurance companies and their policyholders enter into a contractual agreement with each other regarding coverage. In the case of car accidents, you would be dealing with an auto insurance policy contract. The contract contains many facets but basically says that as long as you pay your monthly premiums, your insurance provider will provide you with the necessary coverage stated in the terms of your contract.
In the event of a car accident, you will report this to your insurance company. If there were other drivers involved in the accident, they will also have to report the accident to their insurance company. If the other driver was at-fault in the accident, then they will be responsible for providing you with the necessary compensation up to the amount of coverage in the at-fault driver's policy. What can sometimes go wrong is when an insurance company provides less compensation than the amount actually deserved or they can even wrongfully deny a claim.
There are a few ways you may be able to detect insurance bad faith. For one, if your claim was denied then the insurance company will have to issue a notice of denial which will explain why your claim was denied. If the reasons for denial are not true, then you can file a request for reconsideration and include any necessary information to get your claim approved. The denial may have simply been an oversight, but there is a chance it could be bad faith practices.
Insurance bad faith also may be a factor if the insurance company is refusing to return your calls or keep in communication with you. Avoidance is one of the more obvious signs of bad faith practices. If you believe that bad faith might be a factor in your car accident case, please get in touch with the legal team at our firm immediately.
Questions? Call (877) 661-9900 to speak with a Houston car accident lawyer at Stern Law Group about your case.