When you buy car insurance coverage from a provider, the latter promises to offer protection under your policy’s terms. Thus, if a crash takes place, you expect the insurance provider to cover any claims that can brought against you. Often, this means paying for personal injuries, including the victim’s medical expenses, pain and suffering, and lost income. Also, car accident claims often include payments for car repair or replacement.
If an insurer does not fulfill its promises like unreasonably withholding or delaying payment or denying coverage of a legitimate claim, this can mean it has acted in bad faith. Sometimes, acting in bad faith can result in penalties for the insurance company. If you are going through unreasonable tactics employed by an insurance company, have an Atlanta car accident lawyer take care of it for you. Insurance companies do not take claims lightly when an attorney is involved.
Legal Protection Against Insurers
Laws in Georgia help make sure that insurers stay true to their promise of supporting policyholders. Whenever they act in bad faith, you can demand fairness and take legal action against the company if needed.
In liability cases, bad faith claims let you recover compensation greater than the policy limit. If you bring a claim against the liability policy of the at-fault driver, state law requires the insurance company to investigate and enter a settlement negotiation in good faith. Such a settlement should compensate you for your losses up to the limit of the policy.
How Insurance Companies Act in Bad Faith
The following are examples of an insurer acting in bad faith:
- Unnecessarily refusing or delaying a claim payment. If an insurance company refuses to make timely payment for your valid claim, which is worth more than the policy limit of the at-fault driver, you may sue the at-fault driver to recover damages beyond the policy limit. Let us say you sustained severe injuries in a crash and are entitled to maximum compensation up to the limit of the policy. But if the insurer refuses to pay your claim, they may end up paying more than the policy limit in a lawsuit.
- Not defending a lawsuit. Often, insurers should defend their policyholder against liability claims. Otherwise, they may breach their duty of good faith and just dealing. As a result, they can pay a verdict or judgment in the case along with other penalties related to bad faith. But the company’s failure to acknowledge or pay a claim does not constitute a refusal to offer a defense. Insurers may deny claims for various reasons. For instance, if the driver responsible for the accident was excluded from a policy, the insurance company may argue it doesn’t have to defend a liability claim. Also, the company may deny coverage if the policy has expired or if the policyholder caused the accident through a road rage. If you think an insurance company acted in bad faith by refusing to offer a defense, secure and review the terms and conditions of the insurance policy of the at-fault driver. Your lawyer can do this for you.
- Making unreasonable policy interpretations. While insurers must act in good faith and fair dealing, some of them may misinterpret policy language to avoid giving coverage.
Georgia can get involved if a car insurance provider acts in bad faith. Particularly, the state’s Department of Insurance can investigate complaints against insurers. if you think your insurance company is unfairly handling your claim, file a complaint with the DOI. The department will investigate your case and determine if the insurer has violated state insurance laws. If the DOI finds the insurer acting in bad faith, it can impose penalties.
