Interacting with an insurance company is often the last thing you want to do after a car accident in Montana, but it is usually inevitable. You may have heard stories about insurance companies acting in bad faith and wonder what it means.
Bad faith in insurance is generally considered to be dishonest behavior by an insurance company. The behavior is designed to save the insurance company money and deny you the full and fair compensation you might be entitled to after an accident.
Here are some signs that an insurance company could be acting in bad faith.
Failing to investigate
Insurance companies must conduct a prompt and full investigation of your claim. An insurance company that delays investigating or denies all or part of a claim without doing a thorough investigation could be acting in bad faith.
Not providing a reason for denial
You are entitled to a reason for a denial. Insurance companies must always provide a reason for denying a claim.
If your claim is denied without a reason or for a vague reason that you do not understand, contact the company and ask them to provide a specific reason. Do not be afraid to ask questions. Do not accept a denial without knowing exactly why.
Accusing you of fraud
You should never let an insurance company make threatening statements toward you. A common type of threatening statement from an insurance company involves accusing you of fraud, such as filing a fraudulent insurance claim.
Lowballing you
Insurance companies often offer you less money than your claim is worth. While the first offer from an insurance company is likely to be low, an unreasonably low offer might mean the company is acting in bad faith.
There is often a fine line between strong negotiating tactics and acting in bad faith. Watching out for these signs can help you determine if an insurance company is trying to take advantage of you by acting in bad faith. If you believe that they are, it could be time to seek advice.