My Insurance Company is Acting in Bad Faith

If you’ve ever experienced an insurance company acting in bad faith, you know it can be frustrating! Read our blog to learn more.
Dooley Noted, Business Lawyer, Estate planning, Restaurant Lawyer, Insurance Dispute attorney, Alternative Dispute Resolutions

Staff Writer

Staff Writer, @DooleyNotedLaw

Recommended for you

Many insurance companies deny claims, offer low settlements, and make it difficult getting your life back on track. If you are currently going through this type of situation, don’t despair! We’re sharing what to do if your insurance company is acting in bad faith.

What is a First Party Dispute?

A first party insurance dispute happens when someone has a disagreement with their insurance company about whether the company is following the policy terms. In other words, if you think your company is not following the policy, you would have a first party dispute.

One of the most common disagreements people have is when an insurance company denies a valid claim. This means they don’t pay what they owe you. Sometimes, insurance companies might try to give you a lower amount for your claim, or they might take a long time processing your claim. If you have experienced any of these things, you might have a first party insurance claim.

What is the responsibility of the Insurance company?

The insurance companies have a responsibility to you, the policyholder. They need to make sure that you understand what your policy includes. Additionally, insurance companies must inform you about your rights and obligations under the policy. Ultimately, they need to follow the terms of the contract and act in good faith by avoiding unfair practices.

As the insured party, you also have a responsibility. You need to make sure that you understand your policy and what it covers. If you have any questions about your policy, you should ask your insurance company. Understanding what your policy covers will help avoid any confusion later on down the road.

If your insurance company is not following through on their agreement, reach out to a lawyer specializing in Texas insurance disputes. An experienced lawyer can help you understand your legal rights and options. Further, they will be able to advise you on how to move forward with your claim.

Is my Insurance Company Acting in Bad Faith? 

Bad faith is when an insurance company doesn’t act honestly and fairly. For example, if your insurance company denies your claim without investigating it first, they might be acting in bad faith.

In other words, when an insurance company avoids fulfilling its obligations in the policy, this is bad faith. They may do this by delaying, offering a low settlement, or denying your claim. 

Below are three ways that may help you identify whether or not your insurance company is acting in bad faith.

The insurance company is stalling. 

One common tactic that insurance companies use is to ask for more information. They might also drag their feet on processing your claim. If you feel like your insurance company is delaying your claim, reaching out to an attorney is essential.

The insurance company denied my claim. 

Sometimes insurance companies will not approve a claim. The reason may be that you did not give enough information or the information was inaccurate. For them to support your insurance claim, you must show that you didn’t cause the damages. However, your insurance company might also be acting in bad faith if they do not have a valid reason for denying your claim. 

The insurance company gave a low settlement offer.

Sometimes they may give you a low settlement offer. If you think this offer is too low, do not hesitate to reach out to an attorney. It’s essential to have an advocate on your side to help you recover what you deserve. However, if you immediately accept the offer, you may not be able to get more money later on.

Insurance companies might not tell you everything about your policy before buying it. Sometimes they do this so that they don’t have to pay a claim. They might also change the contract’s language to make it seem like you won’t be able to get money from them if something happens. Before buying an insurance policy, the insurance company should tell you everything you need to know about it.

When to Hire an Insurance Dispute Lawyer in Texas

The first step is understanding what is in your policy and if your insurance company is following those terms. Next, it’s essential to know what they are not allowed to do.

Insurance companies cannot:

  • Delay an investigation into the claim
  • Refuse to pay a claim without a good reason
  • Fail to approve or deny a claim within a reasonable timeframe
  • Deny a claim with little or no explanation as to the reason for the denial Fail to defend you in a liability lawsuit when your liability policy covers the claim 
  • Deny a claim based on an application misstatement after the period of contestability has past

If your insurance company completes any of the above actions, you can consult with an insurance dispute lawyer in Texas. 

Why hire an Insurance Dispute Lawyer in Texas?

Dealing with insurance companies can be frustrating. This is especially true if you are already dealing with the aftermath of an accident.

At Dooley Noted Law, we are experienced in insurance disputes and will:

  • Investigate your claim and gather evidence to support your case
  • Analyze your policy to determine what coverage is available to you
  • Handle all communications and negotiations with the insurance company on your behalf

If you find yourself where your insurance company is acting in bad faith, don’t hesitate to reach out to an insurance dispute lawyer in Texas. We at Dooley Noted Law will review your case and help you decide the best way to move forward. You don’t have to go through this process alone. Contact us today for a free consultation!

The contents of this post, and the posting and viewing of the information on this post, should not be construed as, and should not be relied upon for, legal advice in any particular circumstance or fact situation. An attorney should be contacted for advice on specific legal issues.

Recommended for you

Uninsured in an Accident: Everything You Need to Know

If you are involved in a collision, and the other driver is uninsured in an accident, what do you do? A situation like this is often confusing and frustrating, especially if you are unfamiliar with the law. This blog post will discuss everything you need to know about...