Understanding Auto Insurance Bad Faith Claims
Auto insurance is meant to protect policyholders from financial ruin after an accident, but some insurance companies prioritize profits over policyholders. When insurers deny, delay, or underpay valid claims, they engage in bad faith practices that leave drivers struggling with repair costs, medical bills, and lost income.
At Highway Law Group, we help victims of auto insurance bad faith fight back against unfair treatment, ensuring they receive the full compensation they are entitled to under their policies.
Common Examples of Auto Insurance Bad Faith
Insurance companies are legally required to handle claims fairly and in good faith. However, they often use deceptive tactics to avoid paying claims. Common examples of bad faith include:
- Unjustified Claim Denials – Refusing to pay valid claims without explanation.
- Delays in Processing Claims – Purposefully prolonging investigations to pressure claimants.
- Underpayment of Claims – Offering settlements far below the actual damages.
- Misrepresentation of Policy Terms – Using vague or misleading language to avoid payouts.
- Failure to Conduct a Proper Investigation – Ignoring key evidence or refusing to review claims thoroughly.
- Retaliation Against Policyholders – Canceling policies or increasing premiums after a claim is filed.
If your insurance company has engaged in these unfair practices, you may have grounds for a bad faith claim.
Compensation for Auto Insurance Bad Faith Victims
When an insurance company refuses to uphold its policy, policyholders may face severe financial hardships. Victims of auto insurance bad faith may be entitled to compensation for:
- Full Policy Benefits – Payment for vehicle repairs, medical bills, and lost wages.
- Consequential Damages – Reimbursement for financial losses caused by claim delays.
- Emotional Distress Damages – Compensation for the stress and frustration of an unfair denial.
- Punitive Damages – Additional compensation if the insurer acted with willful misconduct.
- Attorney’s Fees – Recovery of legal expenses for fighting an insurance bad faith case.
Highway Law Group aggressively fights for policyholders to ensure they receive the full and fair compensation they are owed.