You pay your premiums on time, expecting your auto insurance to be there when needed. But what happens if you injure someone in an accident and your claim gets lowballed, delayed or worse, denied? You might have a case for a bad faith insurance claim.
What is bad faith in insurance?
Bad faith occurs when your insurance company breaches its duty to handle your claim fairly and honestly. This isn’t about the insurance company making a simple mistake. Insurance companies are required to act in good faith when dealing with policyholders. Bad faith involves intentional or reckless disregard for your rights.
Signs of bad faith insurance
Accidents are unintended and unfortunate, that’s why Oklahoma mandates liability insurance. This covers body injury liability that pays for medical bills and lost wages of people injured in an accident you caused. Here are examples of red flags that your insurance company might be acting in bad faith:
- Unreasonable denial: They deny your claim without a proper explanation or despite straightforward evidence supporting your case.
- Undervaluing your claim: They offer a settlement amount significantly lower than the actual cost of medical bills.
- Unnecessary delays: They drag out the claims process excessively, creating financial hardship.
- Poor communication: They fail to respond to your inquiries or update your claim status promptly.
- Misrepresenting policy coverage: They twist the wording of your policy to avoid honoring your coverage.
An insurance company’s failure to fulfill its fiduciary duty and act in its policyholders’ best interest can cause financial, mental and emotional distress to its beneficiaries. Bad faith auto insurance can be frustrating, especially for those who are involved in vehicular accidents.
What can I do against bad faith?
If you suspect your insurance company is acting in bad faith, here are some things you can do:
- Consult a legal professional: An attorney specializing in bad faith insurance claims may help review your policy, assess your case and advise you on the appropriate course of action.
- Gather documentation: Keep copies of all communication with your insurance company, including emails, phone logs, denial letters and medical bills and documents.
- File a complaint: Report the bad faith actions to the Oklahoma Department of Insurance.
Oklahoma law encourages insurance companies to provide fair treatment. If you believe you’ve been a victim of auto insurance bad faith practices, various resources are available to help hold your insurance company accountable and get the compensation you deserve.
