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How to Know If Your Insurance Company is Acting in Bad Faith

Posted on July 4, 2024 in

Worried disabled woman reading a letterYou’ve diligently paid your insurance premiums, believing that in times of need, your insurer will be there to support you as the insurance policy requires. Yet when your moment of need arrives and you file a claim, you’re met with silence, delays, or even sometimes outright denials. It’s a scenario no one anticipates, but it’s what countless insured people find themselves facing every day. However, some telltale signs indicate your insurance company might not have given you equal consideration to that of the insurer as the law in Arizona requires. We can help you evaluate that based on the case evidence and the law.

Swift action is imperative for protecting your rights and confirming you are treated fairly by your insurance company. If you think your insurance company may be acting in bad faith, we can help. With over 65 years of combined experience, the dedicated team at Jensen Phelan Law Firm stands ready to assess your case, provide a comprehensive explanation of your rights, and safeguard your interests.

Signs Your Insurance Company May Be Acting in Bad Faith

If you’ve been involved in a car accident, chances are you’ve already submitted a claim against the responsible driver. Yet, despite facing injuries, substantial medical costs, and lost wages, the anticipated compensation from the insurance company may not materialize. Sadly, many car accident survivors face inadequate compensation or even outright denial of their claims, indicative of bad faith practices.

Recognizing red flags early on that your insurance company might be acting in bad faith is crucial. Look out for these signs:

  • Unjustified delays: If your insurance claim is met with unnecessary delays without reasonable explanation, it could be a sign of bad faith. Insurance companies are obligated to handle claims promptly and efficiently.
  • Undervalued claim: An insurance company acting in bad faith may deliberately undervalue your claim, offering settlements significantly below what is fair and just. This tactic is often an attempt to minimize their financial responsibility.
  • Failure to investigate: Proper investigation is a fundamental part of the claims process. If your insurance company neglects to conduct a thorough and reasonable investigation into your claim, it raises suspicions of bad faith.
  • Denial without explanation: If your claim is denied without a clear and reasonable explanation, it may be indicative of bad faith. Your insurance company is obligated to provide a valid reason for claim denials.
  • Lack of communication: Open and transparent communication is vital throughout the claims process. If your insurance company consistently avoids or fails to communicate important information about your claim, it may be acting in bad faith.
  • Unfairly contesting coverage: Bad faith can manifest in unjustly contesting coverage that should be straightforward. If your insurance company disputes coverage without valid grounds, it’s a red flag.
  • Intimidation: Resorting to intimidation or coercion to dissuade you from pursuing your claim is a sign of bad faith. Your insurance company should not use bullying tactics to discourage you.
  • Failure to settle within policy limits: When an insurance company refuses to settle a claim within the policy limits, leaving you exposed to potential legal action, it may be acting in bad faith.

Hiring a lawyer is a proactive step to protect your rights and navigate the complexities of a potential bad faith claim. Since insurance companies have legal teams working to protect their interests, equipping yourself with legal representation early on will help level the playing field.

Hold Insurance Companies Acting in Bad Faith Accountable with an Arizona Attorney

Jensen Phelan Law Firm attorneys have been delivering top-quality legal representation since 1974. Don’t navigate the complexities of insurance bad faith claims alone. 

Reach out today by calling (928) 778-2660 or filling out our contact form for a free assessment of your case and a thorough explanation of your rights.