In cases of bad-faith insurance claims, victims of damage to their homes or injuries from car crashes are left fighting with their insurance carriers in hopes of getting the benefits they were supposed to be entitled to. It's the sad truth that many companies try to avoid paying out what their clients are owed.
It's something most people fear: Seeking a claim from insurance only to be told you can't or don't qualify for the amount you need. The reality is that your insurance carrier is obligated to be fair with you up to the amount of your coverage. Your insurer has to provide you with a fair offer within a reasonable amount of time and should take your claim seriously.
Bad-faith insurance claims are a significant problem for consumers. They exist only because the insurance company does not want to pay out what it has expressly stated that it would given the correct circumstances.
There are many tactics that insurance companies could use to attempt to avoid paying a claim. These are not legal, and they are not fair to consumers.
Every day, there are people who get hurt or who turn in insurance claims only to be denied. They meet every qualification for the claim to be approved yet they aren't. The insurance company drags out the claim, takes its sweet time to respond and leaves the victim little choice but to start paying for bills out of their own pockets.
You were in a car crash, and you were immediately sent to the hospital. You took time to recover, but you also made sure that your insurance agent was aware of the situation.
It is important for insurance companies to hold up their end of the contract you make with them. They are required to pay out for claims that meet with the requirements that they've set and you've agreed upon. Delaying investigations or reviews is a tactic used to make those who file a claim stop pushing for a resolution, but that's not something that you should let get in your way.
There are some things that your car insurance company may not want you to know, like the fact that you can fight a denied claim or that it can attempt to drag out a claim to get you to forget about it.
If an insurer does not want to pay out for a claim, one of the tactics the company may use is creating an unreasonable delay. When experiencing an unreasonable delay, a person may actually give up on the claim since they're dealing with so many other problems in their personal life.
Imagine that you purchase a car insurance policy that says it will pay out $10,000 for injuries in a crash. To you, it meant that it was $10,000 per person. However, after you crashed with a passenger in tow, you discovered that the $10,000 was the total for everyone in the crash, not just you or your passenger separately.