Dealing with a car accident is stressful enough, but when your insurance company refuses to handle your claim fairly, things can quickly go from frustrating to overwhelming. If you’ve been in a motor vehicle accident and your insurance carrier is delaying, underpaying, or outright denying your claim without a valid reason, you might be dealing with insurance bad faith.
At Edwards Injury Law, we help accident victims hold insurance companies accountable when they fail to act in good faith. If you suspect unfair treatment in your car accident settlement, knowing your rights is the first step toward getting the compensation you are entitled to. In this article, we’ll go over how to handle this difficult situation and how a Charlotte personal injury attorney can help.
What Is Insurance Bad Faith?
When evaluating motor vehicle accident settlements, insurance adjusters have a legal duty to handle claims fairly and act in good faith. Unfortunately, some insurers put profits over people and look for ways to avoid paying policyholders what they are owed.
Bad faith occurs when an insurance company unfairly delays, denies, or undervalues a valid claim. This practice is illegal in North Carolina, and if an insurer is found guilty of bad faith actions, they may be required to pay not only the original claim amount but also punitive damages and attorney’s fees.
Common Signs of Insurance Bad Faith
If your insurance company is dragging its feet or making excuses, you might wonder whether it’s just standard processing delays or something more serious. Here are some common signs of insurance bad faith in car accident settlements:
- Unreasonable Claim Denials: An insurance company can’t deny your injury claim without a legitimate reason. If your claim was denied with little to no explanation, or the insurer is citing vague policy exclusions that don’t apply, it could be a red flag.
- Delays Without Justification: Insurance companies are required to process claims within a reasonable timeframe. If they fail to do a proper investigation within a reasonable time, ignore your calls, or keep requesting unnecessary documents, they may be trying to wear you down so you’ll accept a low settlement or give up altogether.
- Lowball Settlement Offers: If the insurance company makes an offer that’s far below what your medical bills, lost wages, property damage, and other losses are worth, they may be acting in bad faith. Some insurers use this tactic to pressure accident victims into accepting an insufficient settlement before they understand the full extent of their damages.
- Failure to Investigate: A fair insurance company will thoroughly investigate your accident before making a decision. If the insurer denies your car accident claim without reviewing police reports, medical records, or witness statements, they are not acting in good faith.
- Misrepresenting Insurance Policy Terms: Some insurers may twist the wording of your policy to make it seem like you’re not covered, even when you are. If your insurance company is misinterpreting policy language or providing misleading information, it’s time to push back.
- Pressuring You to Settle Quickly: If an insurance company is rushing you to accept a settlement, they may be trying to close your case before you fully understand the extent of your injuries. Once you accept an insurance bad faith car accident settlement, you can’t go back and ask for more, even if your medical bills continue piling up.
North Carolina Laws on Insurance Bad Faith
North Carolina protects policyholders from unfair and deceptive insurance practices through two main legal avenues:
- The Unfair and Deceptive Trade Practices Act: This North Carolina law makes it illegal for insurance claim adjusters to engage in practices that are deceptive, unethical, or misleading. If an insurer wrongfully denies a claim, misrepresents insurance coverage, or refuses to investigate properly, they can be held legally responsible.
- Common Law Bad Faith Claims: Even if an insurer’s actions don’t violate state statutes, North Carolina courts recognize common law bad faith insurance claims, meaning that if an insurance company unreasonably refuses to pay a valid claim, the policyholder can seek damages.
When an insurance company is found guilty of bad faith tactics, they may be required to pay:
- The full amount owed under the policy for vehicle damage and other losses
- Punitive damages (extra compensation to punish the insurer)
- Attorney fees and legal costs
If you believe your insurer is using bad faith practices, speaking with a personal injury lawyer as soon as possible can help you determine the best course of action.
What to Do If You Suspect Insurance Bad Faith Practices
If you’re dealing with an insurance company that is delaying, denying, or undervaluing your claim, don’t ignore the warning signs. Here’s what you should do:
- Keep Detailed Records of All Communications: Document everything. Save emails, letters, and voicemails from your insurer. If you have phone conversations, take detailed notes, including the date, time, and the name of the representative you spoke with during each phone call.
- Request a Written Explanation: If your claim is denied or delayed, ask your insurer to explain their reasoning in writing. This forces them to provide specific reasons for their decision and can serve as evidence if legal action is needed.
- Gather Evidence: Collect all documents related to your motor vehicle accident, including the police report, medical records and bills, repair estimates for your vehicle, photos of the accident scene and your injuries, and witness statements. This documentation will help support your legal claim and prevent the insurer from arguing that they lacked sufficient information.
- Don’t Accept an Unfair Settlement: If the insurance company offers you a low settlement right away, don’t rush to accept it. Many times, these initial offers don’t fully cover medical expenses, lost wages, or pain and suffering.
- Contact an Experienced Attorney: Insurance providers take bad faith claims seriously, especially when they know a car accident lawyer is involved. An attorney can negotiate with the insurer on your behalf, build a strong case, and take legal action if necessary.
How a Lawyer Can Help With Insurance Bad Faith Car Accident Settlements
At Edwards Injury Law, we know how frustrating it is when an insurance company refuses to pay what you’re entitled to your policy. Our personal injury lawyers fight for accident victims by:
- Holding insurance companies accountable when they delay, deny, or undervalue legitimate claims
- Negotiating aggressively to get you a fair settlement
- Filing lawsuits when necessary to seek maximum compensation
- Helping you understand your rights so you don’t get taken advantage of
Insurance companies usually have dedicated teams of lawyers protecting their interests, so you should have an experienced car accident lawyer in your corner, fighting for you. It sends a message to the insurer that you’re serious about your financial compensation.
Don’t Let the Insurance Company Take Advantage of You
If you believe your insurance bad faith car accident settlement is being unfairly handled, you don’t have to accept it. At Edwards Injury Law, we help North Carolina accident victims stand up to bad-faith insurance practices and get the fair compensation they deserve.
Let’s make sure you get the reasonable settlement you’re owed. For more information or to schedule a free consultation with a bad faith insurance lawyer, contact us online or call 866.607.6211.
Related: How Pre-Existing Health Conditions Affect Car Accident Injury Claims
