Bad Faith Insurance Claim Practices – How To Avoid Getting Sued By Your Insurer

In recent years, bad faith insurance claim tactics have become more popular. And with these tactics, many insurance firms stall and frustrate injury victims. They can also reject valid claims of injury victims.

As a result, these injury victims get forced to sue their insurers because they have no other option. Therefore, it’s vital to know insurance firms’ possible bad faith tactics if you or your loved ones find yourself in a tough spot. That way, you can avoid getting sued by your insurer.

In addition, with every step you decide to take, ensure to enlist a personal injury lawyer. The reason is that the injury lawyer can help you protect your rights through the legal process.

Therefore, in this article, you’ll learn more about bad faith insurance claim practices. Also, you’ll learn how to avoid getting sued by your insurer. Read on!

What Is Bad Faith Insurance?

Insurance firms most times deceive car accident victims. They deceive victims regarding their rights to forgo paying a claim and act in bad faith.

Therefore, bad faith insurance is defined as when an insurer tries to renege on its promise to injury victims. The insurer can decline to pay the victim’s valid claim. They can also fail to look into and process the claims at the right time. 

The people mostly affected by bad faith are those involved in accidents, with car accidents being the most common form. As a result, it is best for car accident victims to seek help from local car accident lawyers if they suspect their insurer is acting in bad faith.

That is because these lawyers are familiar with insurance companies and their mode of operation. Hence they offer valuable help when dealing with bad faith practices.

Some Common Bad Faith Insurance Claim Practices

There are various ways in which an insurer can use bad faith tactics. Below are some common bad faith insurance claim practices. 

1. Extended Time to Resolve the Claim

A car accident victim may face major financial hardship if a payout gets delayed. It is the work of insurance firms to resolve legitimate claims without undue delay. However, if the insurance firm delays the payment, it is pure bad faith insurance claim practice.

Also, the firm will keep attempting to lower the value of a settlement by using a delay as leverage.

2. Deception Regarding the Facts

Car accident victims have a right to analysis of the case’s facts from the insurance firms. Insurers can give you all the facts due to their position of power. 

It implies that whatever facts the insurer gives to the injury victims, they’ll take them. And if they present false information, victims risk suffering big losses.

3. Not Looking into the Claim

Another sign of a bad faith insurance claim practice is the failure to swiftly and properly examine a claim.

Also, a lack of research by insurance firms may place a victim in a tough situation. So ensure the insurance firm conducts an active duty to carry out any required findings.

4. Refusing to Honor a True Claim

Lastly, an insurance claim for bad faith may result from directly denying a valid claim. Most times, coverage conflicts can occur in some cases. The insurer may mistakenly reject a claim without acting in bad faith. 

However, the insurance firm may get held accountable for bad faith tactics if it disputes a claim. It can also be accountable if the firm refuses to pay the full settlement on a legitimate claim.

How to Avoid Getting Sued by Your Insurer?

Despite winning a lawsuit or getting your correct payment from your insurer, ensure you don’t get sued by them. And the best way to do that is to avoid getting sued. 

Below are some ways you can avoid getting sued by your insurer.

1. Get Lawful, Well-Written Contracts

The kind of accident you get involved in is irrelevant. You must get legal contracts that an injury lawyer has expertly created. You can get the legal contract drafted, even if it is between you and the person that caused the accident. Also, you must draw a legal contract with your insurer.

The reason is that well-written contracts can limit risks. It can also protect you from getting sued by your insurer. For example, if your insurance adjuster wants to take advantage of a specific situation, say car accident claims, you can easily refer to a written contract that states how things were supposed to go. 

By doing so, you get protected from any further action that your insurer may want to take. It will also make it easier for you to collect your settlement from your insurer.

The legal contract will also prevent confusion between you and your insurer. The legal contract lets both parties know what each person should do.

This implies that a well written contract will clearly state the boundaries for both the insured and the insurer. For example, what the policy covers and is not included in it.

2. Create a Bond With a Reliable Attorney

Ensure you think about this advice before you discard it. For example, most car accident victims are unaware of the legal recourse of the case. So, before taking any action, be aware of any risk to help you avoid getting sued. You can do so by creating a bond with an expert lawyer.

With such a bond in place, there may be cases when they do not even charge you for your time. You can have a brief inquiry regarding the legal aspects of anything you want to do.

It is no news that relationships are mutual. Thus the lawyer will respect your interests as well. Also, being aware of legal effects will be very beneficial to you.

Even if you get sued, avoiding a lawsuit can save you tons of money. And it is possible due to your bond with an expert attorney. As a result, you receive the details you need and when you need them.

3. Watch Your Language

Make sure you can provide evidence to support any claims you make about your case. And while doing that, exercise caution when talking to your insurer or about your affairs. 

If you don’t take caution, your insurer can sue for slander, defamation, or libel due to your negative words.

Bottom Line

Bad faith insurance claim practices can affect injury victims due to the tactics that come with them. Everything discussed above clearly shows some common bad faith insurance practices. 

But if you suspect your insurer is acting in bad faith, it’s time to take action. So get a personal injury lawyer as fast as you can. The reason is that it may be the best means to get the payment you deserve.

Finally, you will find some things you can do to avoid getting sued. For example, mind what you say, create a bond with a lawyer, and so on.

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