After a car accident, you may understandably rely on your insurance company to handle your claim fairly and provide the compensation you are entitled to under your policy. Unfortunately, not all insurers act in good faith. Some may wrongfully deny claims, delay payments or offer settlements far below what you deserve.
If you have recently been involved in a collision and your claim has been denied without a valid reason, you may be a victim of bad faith insurance practices and have legal options available to you in order to challenge that decision.
What is a bad-faith insurance denial?
Insurance companies have a legal obligation to investigate and process claims fairly. A bad faith denial occurs when an insurer unreasonably rejects a claim or fails to handle it properly. This can involve:
- Denying a valid claim without justification
- Failing to conduct a thorough investigation
- Delaying payments or responses for an unreasonable amount of time
- Misrepresenting policy terms to avoid paying a claim
- Offering an unfairly low settlement without explanation
While insurance companies have the right to deny claims based on legitimate reasons—such as lack of coverage or insufficient evidence—bad faith denials are based on unfair practices meant to protect a company’s profits rather than policyholders’ rights.
Bad faith insurance practices can leave accident victims struggling financially when they need support the most. If a recent claim has been denied unfairly, taking legal action may be necessary to recover the compensation you deserve. Seeking personalized legal guidance is a good way to get started.
