Insurance premiums take up a reasonable chunk of your paycheck and in return, you expect your insurance company to deliver if and when the situation arises.
Unfortunately, insurers may sometimes act in bad faith, undermining their commitment to fairly handle your claim. If you suspect this, some of the ways you can tell if they are acting in bad faith include the following.
1. Unjustified claim denials
If your insurer refuses to pay a valid claim on flimsy grounds, they may be engaging in bad faith practices. This includes denying a claim without a legitimate reason or failing to adhere to the terms outlined in your policy. Such actions can be a deliberate attempt to avoid their financial responsibilities.
2. They make threatening statements
Your insurer should not issue threats or use intimidation tactics to discourage you from pursuing a claim. If they resort to threats or coercive language to manipulate you into withdrawing your claim or accepting a lower settlement, this may be a sign of bad faith. Insurers are obligated to handle claims professionally and ethically without resorting to intimidation.
3. Unjustified delays and shoddy investigations
Dragging the claims process out or conducting a superficial investigation can be indicative of bad faith. If your insurer delays processing your claim without valid reasons or fails to conduct a thorough and fair investigation, they may be trying to avoid paying out. Efficient and thorough handling of claims is a standard obligation, and failure to meet these expectations can signal an attempt to shirk responsibility.
4. Lowballing and deceptive practices
Insurers should pay claims fairly and in accordance with the policy terms. If they offer settlements that are significantly lower than what you are entitled to or engage in deceptive practices to minimize their payout, this could be a sign of bad faith. This includes offering compensation that does not reflect the true value of your loss or using tactics to obscure the true extent of your coverage.
Seeking legal guidance can help you understand your options and guide you through the process of holding the insurer accountable for their actions.
