Insurance companies often have proper protocols to deal with a personal injury claim within a given time. However, some insurance companies delay your claim or try to find pitfalls in your case to save themselves some money, often engaging in what is known as bad faith insurance practices.
These practices can significantly hinder your ability to receive fair compensation for your injuries and damages. This is where great law firms like The Champion Firm come in. These personal injury attorneys are well aware of the insurance companies’ strategies and can protect you from them.
Want to know about 5 bad faith insurance practices to stay away from? Read on!
5 Bad Faith Insurance Practices
The following are some bad faith practices that you should be aware of to ensure you’re not taken advantage of during the claims process:
Unreasonable Reliance on Policy Terms
Well, it may sound odd, considering the level of trust people put in insurance companies, but policy exclusions are the company’s best friend. Unreasonable reliance on policy exclusions happens when an insurer denies your claim by using tricky rules in the policy.
For instance, you may go skydiving on a family trip and fall into an accident. You reach out to your insurance company for coverage, and they don’t provide you with the necessary claim value, stating that this activity is considered dangerous under their rules. The insurer may also unfairly use policy clauses to deny you a claim. This may include misrepresenting or misinterpreting the language of the policy to deny coverage, even when the claim falls within the intended scope of coverage.
Lack of Communication
Communication is key for everything, and an insurance claim is no exception. When you file a personal injury claim, your insurer should guide you through the claim procedure. They should speak with you before making a decision and make you aware of the progress of your case. If an insurance company fails to do so, they are showing bad faith, and you should consult an injury attorney.
Unjust Delay in Paying the Claim
The law states that the insurance provider has 15 days to process your claim. They must accept or deny the claim within 15 days so the victim can look for other options. However, many insurers intentionally delay the process by demanding unnecessary paperwork or carrying out useless investigations.
This delay puts financial pressure on you as you’ve got to wait for the claim for more time than usual. The purpose behind this is to either force you to leave your personal injury claim or settle for a smaller amount. But you should know that justice delayed is justice denied, and it’s best to contact a personal injury lawyer to resolve this difficult situation.
Inadequate Investigation
Well, many insurance companies don’t do a proper investigation before making a final decision about your claim. They may not interview key witnesses, neglect gathering evidence, or ignore important facts that can affect the outcome of your claim. This is a bad faith practice, and insurers do it to either deny your claims or leave you unfairly compensated.
Low-Value Claims
Bad faith practices can also happen if the insurer pushes you to a point where you have to expect a low value claim for your loss. They do it by complicating the claim process, delaying an investigation, or undervaluing your damages.
Conclusion
Some bad faith practices your insurance company may engage in include changing policies to deny claims, paying a low amount for your loss, and a lack of communication. They may also rely on policy exclusions and delay your claim to get away. The best thing to do in such a situation is to contact a personal injury lawyer who can swiftly help you track such tactics and guide you to secure a good claim.
