It’s no secret that insurance companies save big money by denying claims and will go to incredible lengths to do so; Jim Mathis, a former employee of both Allstate and State Farm, told CNN that insurers commonly rely on the “three Ds,” which are denying a claim, delaying a settlement, and defending against claims in court. “The profits are good, and as long as the community, the public allows this to occur, the insurance companies will get richer and people will not get a fair and reasonable settlement,” he said.
By law, your insurance company owes you a duty to “act in good faith,” meaning it should not attempt to escape its obligation to investigate and pay out claims, and “bad faith” describes actions which do involve escaping this obligation. Having an experienced personal injury attorney on your side is essential to ensure that your rights are protected from bad faith on behalf of an insurance company and you can be fully compensated for your injuries and losses.
Here are some examples of common “bad faith” insurance tactics you should understand:
- Denial of a claim without providing reason – Having your claim denied for an incorrect reason or no reason at all may be an act of bad faith which will prompt further investigation and/or litigation.
- Failure to adequately investigate a claim – Auto accident claims must be “promptly and thoroughly” investigated, and incomplete or delayed investigations which result in a denied claim may be acts of bad faith.
- Attempting to “lowball” a settlement – Insurers often attempt to convince claimants, especially those who negotiate without attorneys, to accept the lowest-possible payout for a settlement.
- Refusal to provide documentation – Not supplying claim-related documents or not complying with documentation requests is a major red flag.
- Misrepresenting policy coverage or applicable laws – Insurers are required by law to be honest and truthful in any statements made about laws or policies related to your claim.
If you or a loved one has been a victim of an injury in an accident and/or bad faith by an insurance company, contact Mike Agruss Law for a free consultation. We are a Chicago-based injury law firm representing individuals (and their families) who have suffered an injury in an accident. We will handle your case quickly and advise you every step of the way, and we will not hesitate to go to trial for you.
Lastly, Mike Agruss Law is not paid attorneys’ fees unless we win your case. Our no-fee promise is that simple. You have nothing to risk when you hire us – only the opportunity to seek justice.