Whenever there is an accident, the injured driver or passengers have the option to claim through the at fault driver's auto insurance or through their own, depending on the state in which the accident happened. Bad faith claims occur when that insurance company doesn't uphold proper accepted standards of investigating the claim or handling the settlement. In effect bad faith claims occur when one party, in this cause the automobile insurance company, fails to fairly and fully pay all claims under the insurance.
Claim Denials
Car insurance companies can also be considered in bad faith if the deny a claim without proper cause. In all cases if a claim is denied the individual that was denied should receive a written report from the adjuster as to the reasons behind the decision. If the claimant believes that these are in error, he or she may have options to proceed with an auto insurance bad faith lawsuit.
Appeals
Appeals directly to the auto insurance company that denied the claim or did not pay out fully are usually the most basic first step. In some cases providing additional documentation, especially with medical related claims, may be all that is required to have the settlement offer reconsidered and made fair. Most auto insurance companies have a specific form for appeals of claims but these must be done within a specific time duration after the settlement offer and before any checks or payments from the company are accepted and cashed by the claimant.
Mediation or Arbitration
Some but not all auto insurance companies offer individuals that believe their claim was improperly handled to go through mediation or arbitration as an alternative to filing a lawsuit. Mediation allows the claimant to still proceed with legal action if a satisfactory resolution cannot be reached at the mediation. Arbitration is binding with the arbitrator hearing the evidence from the claimant and the insurance company and then writing a binding decision as to how the claim should be handled. There is no option to seek further legal action in most cases with an arbitrated settlement.
Get Legal Help
In each alternative to an auto insurance bad faith lawsuit it is important to have experienced legal help. An attorney can assist in preparing your appeal documentation or represent you and your interests in a mediation or arbitration hearing. Without legal guidance you may settle for less than you deserve and limit your options for further legal options against the insurance company.
