When insurance companies fail to act in good faith, it can complicate settlement negotiations in personal injury cases. Bad faith insurance practices may include delays, underpayment, or outright denial of valid claims.
Understanding how bad faith impacts your case can help you respond effectively.
Recognizing bad faith insurance practices
Bad faith occurs when an insurer unreasonably denies or delays paying a valid claim. Examples include misrepresenting policy terms, failing to investigate claims properly, or offering settlements far below what the claim is worth. California law protects policyholders by requiring insurers to deal fairly and in good faith.
Delays in settlement negotiations
Insurance companies acting in bad faith often delay the claims process. This tactic can pressure injured individuals to accept lower settlements out of financial need. These delays can increase stress and prolong recovery time, making it even harder to resolve the case.
Impact on settlement offers
Bad faith practices can lead to unreasonably low settlement offers. Insurers may attempt to undervalue a claim by ignoring evidence or disputing liability without valid reasons. These low offers can complicate negotiations and force injured parties to seek alternative methods of resolution.
Legal protections under California law
California laws prohibit insurers from engaging in bad-faith practices. If policyholders can prove bad faith, they can file a separate claim against the insurer. This claim can result in additional damages, including compensation for emotional distress or financial losses caused by the insurer’s actions.
Taking control of your case
Dealing with bad faith insurance practices can be frustrating, but understanding your rights under California law empowers you to push for a fair resolution. Document every interaction with the insurer and stay persistent to hold them accountable for their obligations.
