According to experts, a total loss claim can take around 30 days.
This timeframe will vary on a car accident and a claim basis. However, some carriers implement bad faith insurance tactics to delay the payout and processing your claim.
Is the insurance company taking a long time to settle your claim? If you answered yes, you need to keep an eye out for any bad faith tactics from your insurance carrier. Don’t know what we’re talking about?
We’ve got you covered. Here are the top 5 bad faith insurance practices you should be ready to fight during your car accident claim process.
1. Denying Your Claim Without Explanation
It’s common for insurance carriers to deny claims without an explanation or for an invalid reason.
If the insurance company uses this tactic, you should ask them to explain their reasoning behind their denial. Believe it or not, there’s a chance your insurance company might have not investigated your claim, therefore, denying it without a valid reason.
2. Refusing to Settle or Pay a Valid Claim
Is your insurance company denying to pay or settle your claim?
These companies often refuse to pay valid claims.
If that’s your case, you may be able to hold them liable for breach of the insurance contract. Before filing any legal action, you should take a look at your insurance policy contract and consult a lawyer to make sure the company is breaching its duty.
3. Delaying Payment of Your Claim
You may think approval of your claim means receiving your payout immediately, but that’s far from the truth.
Insurance companies often employ the bad faith tactic of delaying claim payments for an unreasonable timeframe.
Before taking further action, you should verify the status of your claim and any applicable state deadlines. Depending on your state, insurance carriers may have a certain timeframe to process and pay your claim.
4. Refusing to Provide Documentation About Your Claim
All insurance companies have to approve or deny a claim based on their investigation.
If an insurer denies your claim, you have the right to ask for documentation explaining their decision. Refusing to provide documentation is common when companies don’t investigate a claim properly.
5. Making Threats About Your Claim
Are you getting threats from your insurance company about your claim?
As a policyholder, you shouldn’t have to endure any harassment or threats.
When companies employ this tactic, you should consider consulting a personal injury lawyer right away. A legal expert can help you obtain the relief you deserve and stop your insurance carrier from harassing you.
Can You Protect Yourself From Bad Faith Insurance Tactics?
You can protect yourself from bad faith insurance tactics by documenting your claim process and consulting a legal expert.
You may think waiting is the best approach to obtain the monetary relief you deserve.
However, delaying taking action to protect yourself can end up in getting the short end of the bargain. Don’t wait until it’s too late and consult a lawyer as soon as you notice your insurance company is employing bad faith tactics.
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