What Is Bad Faith Insurance?

When you pay your insurance premiums month after month, you expect your insurer to honor its end of the bargain when an accident happens. Unfortunately, some insurers prioritize profits over people, engaging in practices that violate their duty to act in good faith. 

When insurance companies deliberately delay, deny, or underpay legitimate claims without reasonable justification, they commit bad faith insurance practices that can leave you financially devastated when you need support most. However, you have the right to file a lawsuit against the company and hold them accountable for these actions. Reach out to a personal injury lawyer in St. George to learn more about your options.

Examples of Bad Faith Practices Among Insurance Providers

Insurance bad faith can take many forms, but all share a common thread: the insurer fails to deal fairly and honestly with your claim. Examples of bad faith practices include:

• Denying valid claims without conducting a proper investigation
• Unreasonably delaying claim processing or payment
• Offering settlements that fall very far below the actual value of your claim
• Misrepresenting policy terms or coverage limits
• Refusing to defend you in liability cases when required by your policy
• Demanding excessive or irrelevant documentation
• Using intimidation tactics or threats during the claims process

Your Legal Rights When You Experience Insurance Bad Faith

When your insurance company engages in bad faith practices, you have the right to pursue legal action through an insurance bad faith lawsuit. You can file such a lawsuit when your insurer breaches its contractual duty to handle your claim fairly and in good faith. This applies whether you are dealing with your own insurance company or fighting to recover compensation from a third-party insurer, such as an at-fault driver’s car insurance provider.

Insurance companies cannot legally engage in these deceptive or unfair practices. If you have become a victim of bad faith, legal action can help you recover not only the original amount owed under your policy but also additional damages as well. A St. George car accident attorney can help assess the true value of your claim and aggressively pursue the compensation you deserve. 

Evidence That Can Be Used to Prove Bad Faith in a Lawsuit

To prove a bad faith insurance lawsuit, you will need solid documentation of your insurer’s unreasonable conduct. Key evidence may include:

• Correspondence between you and your insurance company
• Claim files and demand letters
• Witness statements
• Expert testimony about industry standards
• Records showing the insurer’s internal decision-making process

You will also need evidence showing the true value of your claim and how the insurer’s actions caused you additional damages beyond the original loss. Your lawyer can help you gather any medical records, pay stubs, and other documents that can help establish these losses.

Were You Treated Unfairly by Your Insurance Company? Contact a Lawyer Today

Do not let insurance companies take advantage of you during a challenging time. Instead, trust a Utah bad faith insurance lawyer to defend your rights and protect your best interests. Your lawyer will understand the complex laws governing insurer conduct and can evaluate whether you have grounds for a bad faith claim. 

Insurance companies have teams of lawyers protecting their interests—you need an experienced advocate protecting yours. Contact a Utah bad faith insurance attorney today from We Win Injury Law to discuss your case and explore your legal options.