When dealing with an insurance claim, you trust your insurance company to fulfill its end of the contract. But what if that trust is broken? A study from the American Association for Justice found that insurance companies have become increasingly creative in denying or underpaying legitimate claims, a tactic known as “bad faith.”
In this article, we’ll discuss common tactics insurance companies use to avoid paying valid claims and strategies for holding them accountable. Illinois policyholders have the right to fair treatment, and understanding how to identify bad faith insurance claim can be the first step in securing it.
Common Bad Faith Insurance Claim Tactics
A duty of good faith and fair dealing binds insurance companies. When they violate this duty, they may be operating in “bad faith.” Here are some key signs of bad faith insurance practices Illinois residents should look out for.
- Unreasonable Delays
One of the most common signs of bad faith is unreasonable delay. Illinois law requires insurance companies to process claims within a reasonable timeframe, but some insurers use delays as a tactic to frustrate claimants. They may continuously request more documentation, fail to respond to inquiries, or delay issuing payment without any valid reason. These delays often discourage policyholders from pursuing their claims fully or force them into accepting a lower settlement out of financial necessity.
Document all communications with the insurer, including dates and details of any interactions. If your insurer is persistently slow, they may be acting in bad faith, which can be used as evidence in court if you decide to pursue a bad faith insurance claim.
- Failure to Conduct a Complete Investigation
Insurance companies are required to conduct thorough investigations before deciding on a claim. This includes reviewing all aspects of the claim, examining evidence, and considering witness statements where applicable. However, some insurers may overlook specific evidence or skip important investigative steps to avoid paying out a full settlement.
If your insurer has denied your claim without fully considering your evidence or seems uninterested in investigating your case, they may have breached their duty to you. Keep records of any evidence you submitted and note if the insurer failed to address it in their response.
- Misrepresenting the Law or Policy Language
Another red flag of bad faith is misrepresenting policy language or relevant Illinois law. Some insurers may misquote parts of the insurance policy or suggest that certain coverage doesn’t apply, even when it does. These misrepresentations can lead policyholders to abandon claims or settle for less than they deserve.
Review your policy carefully and consult a bad faith insurance lawyer if the insurer’s explanation contradicts your understanding. An attorney can help you interpret complex policy language and spot any misrepresentations.
More: Can a Car Insurance Company Refuse to Pay a Car Accident Insurance Claim?
3 Reasons to Work with a Bad Faith Insurance Attorney to Fight Unfair Claims in Illinois
Working with an experienced insurance bad faith lawyer can be essential when challenging an insurer’s unfair practices. Here’s how an attorney can help fight for your rightful compensation.
- Proving Bad Faith with Solid Evidence
Proving bad faith can be challenging without solid evidence. Insurance companies often have well-prepared legal teams to defend their actions, making it crucial for policyholders to come prepared with organized documentation and a solid legal argument. A bad faith insurance attorney will work with you to build a case based on the insurer’s documented actions (or inactions) that suggest unfair or improper practices.
Attorneys understand the specifics of Illinois bad faith law and can identify tactics that insurers may use to disguise bad faith actions as routine processes. They’ll help ensure that your evidence tells the complete story, maximizing your chances for a fair settlement.
- Expert Understanding of Bad Faith Laws and Legal Standards
Illinois insurance companies operate under strict regulations, and understanding these laws can help build a strong case. Bad faith insurance attorneys possess in-depth knowledge of state and federal insurance regulations, including the nuances that may apply to specific types of claims. They can guide policyholders through what to expect in a bad faith case, explain the legal terminology, and highlight relevant legal precedents that could influence your case’s outcome.
Moreover, they know how to handle insurance companies’ tactics, such as lowball offers or intimidation tactics, and can navigate the legal process to ensure the insurer upholds its obligation to the policyholder.
- Pursuing Litigation if Necessary
If the insurer refuses to settle pretty, a bad faith insurance lawyer can help take the case to court. While most cases settle outside of the courtroom, litigation may be the best option in cases of clear-cut bad faith. An experienced attorney can advocate for full compensation, including potential punitive damages, which may apply to penalize the insurer for its actions in certain bad faith cases.
Taking a bad faith claim to court can be complex and intimidating, but an attorney provides the expertise needed to level the playing field. They’ll guide you through the entire legal process, ensuring your case is prepared meticulously and effectively.
Contact an Illinois Bad Faith Insurance Attorney for Support
Policyholders in Illinois deserve fair treatment, especially in difficult times when they need their insurance the most. If you believe your insurance company is acting in bad faith—whether by delaying payment, misrepresenting policy terms, or refusing to investigate your claim properly—know that you have the right to take action. Working with an experienced bad faith insurance attorney can be the best way to protect your rights and secure the compensation you’re entitled to receive.
Contact us today at 1-800-24-7-CRASH (2727) to discuss your legal options and take the first step toward securing your financial future. We proudly serve the states of Florida, Illinois, and Pennsylvania.
