Bad Faith Insurance Attorney can guide the insurers to receive compensation through legal expertise. Motor vehicle accident insurance attempts to provide fair financial compensation to the insurers and victims who suffered injuries and loss of income. Usually, all insurers are obliged to follow the legal rules as a matter of good faith and fair dealing.

However, in some cases, the defendants or insurance companies intentionally neglect legal obligations and contracts. As a result of their dishonesty, the claimants/ insurers face delays in payments, legal complications, and other disapproval. That deliberate dishonesty is regarded as Bad faith. 

In such situations, the claimants suffer mental trauma due to unnecessary proceedings, trials, delays, and loss of fair compensation. To avoid or deal with such a situation, you need the help of a bad-faith insurance attorney. His years of expertise will play a pivotal role in recognizing the bad faith of the insurance company and the party at fault. The attorney will guide you about measures to increase your chances of receiving fair compensation. 

How to Identify Bad Faith Practise?

How to identify the bad-faith insurance tactics of the companies? Well, you might face the following situations;

• Insurance companies try to avoid contractual obligations to their policyholders
• Misrepresentation of contract terms
• Nondisclosure of policy provisions
• Companies avoid paying claims
• Complex communication
• Unnecessary delays
• Untimely payments
• Unfair business practices
• Unfair discrimination
• Failure to investigate damage
• Extending the investigation unreasonably 
• Offering a quick settlement or cash payout

How Does Bad Faith Insurance Attorney Help You?

After you observe the above-mentioned bad faith signs in your insurer, the best thing you can do is to consult a bad faith insurance attorney as soon as possible. Your legal expert will guide you about the statute of limitations and other legal actions to take without wasting time. 

Your attorney will advise you not to initiate a bad faith insurance claim on your own, as the laws in each state work differently. First, understand the legal parameters and plan your claim accordingly to avoid complications. The bad faith insurance attorney will also guide you prepare accurate and timely responses to achieve favorable outcomes. 

Bad Faith Insurance Penalties

The unfair dealings by insurance companies can drive them toward intense consequences. They may face damages beyond the limit of insurance compensations. You can file the following penalties against your insurance company or a third party for depicting bad faith;

• Monetary damages
• Loss of business license
• Injunctive relief
• Attorney fees
• Damage of Reputation

Types of Bad Faith Insurance Claims

There are a few types of bad-faith insurance claims you must understand to proceed in the right direction. These include;

First-party Claim

The claim you make with your own insurance company is called first party claim in which you are the insured person demanding compensation

Third-Party Claim

When you file a claim against the insurance company of the other party, it is known as a third-party claim. For example, if you are hurt in a car accident caused by another person, who is insured, then his insurance company will pay compensation for your personal injury or property damages. However, the third party can not file a bad faith claim against the insured person’s company as the law varies from state to state. Yet, the person directly affected by the accident can file a bad faith claim against his insurance company or the company of the at-fault driver if it denies acting in good faith and refuses to agree to a settlement that benefits the policyholder. 

Bad Faith Act Damages 

If the bad faith of the insurance company is proved by the other party, it can face damages exceeding the compensation limit. It includes punitive damages, court costs and attorney fees, statutory penalties, financial losses, and interest on insurance money.

If you have faced bad faith from your insurance company, take Accidental Claim Help to reach the best attorney and maximize your compensation.