Auto insurance companies make lots of promises. They vow to be “on your side” and “like a good neighbor.” The truth of the matter is, when it comes time to pay a claim, they will do anything in their power NOT to pay it – or at least to minimize the amount they will compensate you.
Bad faith insurance action – when an insurance company fails to deal with a customer in good faith – the penalties may be quite severe. If a judge or jury holds an insurer liable for bad faith action, the insured may be paid triple the original damages. This is intended to deter such action in the first place.
Many actions can be categorized as “bad faith,” but we generally see it manifest in car accident claims through claims that are swiftly denied or wrongly delayed or in low-ball settlement offers that are far below what the claim is actually worth. Continue reading ›