If you’ve been in an accident and find yourself facing an insurance company that is refusing to honor your claim, you may be wondering if you have a case of bad faith. Being able to tell if your insurance company is acting in bad faith is crucial, so you can understand what needs to be done. One of the most important things you can do is reach out to a lawyer who specializes in insurance disputes. They can help you determine whether your situation qualifies as bad faith and guide you through your options. In this article, we will go over what you need to understand about bad faith in car insurance, steps you can take before suing for bad faith, and how long you’ll have to sue.
Understanding Bad Faith in Car Insurance
When an insurance company acts dishonestly or unethically towards its policyholders and doesn’t hold up its end of the deal, it’s known as acting in bad faith. Insurance companies are supposed to treat their policyholders fairly, paying out claims as promised, but when they fail to do so, they can be accused of acting in bad faith.
This can look like many things. For instance, an insurance company might deny a legitimate claim, delay payment without a good reason, or offer a settlement that’s less than what the policyholder is entitled to. There are times when insurance companies will try to avoid paying at all, even though the damages are covered under their policy.
If an insurer fails to defend its policyholder during a lawsuit, even though it’s required to do so, this can also be classified as bad faith. If the insurance company mishandles your case or doesn’t provide legal defense, it can leave the individual with both legal and financial trouble.
When an insurance company fails to live up to its responsibilities, such as denying coverage, mishandling claims, or simply being negligent, this is considered bad faith. If an insurance company acts this way, it might not only have to pay the claim but also face extra damages for its actions.
Steps to Take Before Suing for Bad Faith
Before rushing into a lawsuit, it’s important you take a few steps to build a solid foundation for your case. Here are some steps that can help you gather the necessary information and ensure you’re in the best position to succeed.
Review Your Contract
Make sure you carefully read your insurance policy so you understand what’s covered and the terms under which the insurance company will pay for your claim. Sometimes the insurer’s actions may seem unfair, but the policy could have clauses or exclusions that explain why they denied your claim. Understanding your contract inside and out can help you identify any potential wrongdoing on their part.
Document Communications
Keep a detailed record of all interactions with your insurance company. This includes emails, letters, phone calls, and even in-person meetings. Write down dates, times, and the names of any representatives you speak with. Documenting these communications is crucial, as it can provide evidence of any delays, denials, or dishonest behavior.
Gather Evidence
Collect any documents or evidence that support your claim. This could include anything applicable, such as photos, repair estimates, medical records, accident reports, or any other paperwork that backs up your case. The more evidence you provide that shows you’re entitled to the coverage, the stronger the foundation for your case will be.
Appeal the Claim Denial
If your claim is denied, don’t give up right away. Most insurance companies have an appeals process in place that allows you to challenge their decision. Submit a formal appeal with additional documentation or explanations, and give them a chance to reconsider their stance. If they still deny your claim, you’ll have a stronger argument for bad faith later.
Consult with Lawyers Who Sue Insurance Companies Near You
Before initiating legal action, it’s crucial to consult with experienced lawyers who sue insurance companies near you. These legal professionals are skilled in handling disputes involving denied claims, bad faith practices, and insurance litigation.
An insurance attorney can evaluate whether you have a strong case, explain your legal rights as a policyholder, and guide you through each step of the lawsuit process. From filing a claim and negotiating settlements to representing you in court if necessary, a knowledgeable lawyer ensures no critical detail is overlooked that could impact your compensation.
By engaging with a trusted law firm, you position yourself to effectively challenge the insurance company’s decision, protect your rights, and pursue the compensation you may be entitled to. Taking this strategic step helps lay a solid foundation for your insurance lawsuit, especially in bad faith cases, maximizing your chances of achieving a favorable outcome and securing the justice you deserve.
How Long Do You Have to Sue for Bad Faith
In Louisiana, the default statute of limitations for filing a bad faith claim is ten years, as outlined in the Louisiana Civil Code article 3499. This means you have a decade from the time the cause of action arises to take legal action against your insurance company for bad faith. It is important, however, to note that while you’ve been given 10 years, the sooner you file your lawsuit, the better.
The longer you wait, the harder it will be to gather the evidence you need, and witness testimonies will be harder to get because, as time passes, memories fade and can become inaccurate. Additionally, the insurance company may have already closed its records or stopped responding by the time you decide to file, which will make building your case much more difficult.
If you’re unsure about how much time you have in your specific case, speaking to a professional lawyer who specializes in insurance law can help you navigate the legal timeline and make sure you don’t miss any important deadlines. An experienced attorney will be able to spot the signs of bad faith and can help you take action before valuable information is lost.
The sooner you involve a lawyer, the better your chances of building a strong case will be. If needed, they can help take your case to court to fight to hold your insurer accountable. Working with a professional who understands the legal system and has your back can make a big difference in the outcome of your case.
