What is Bad Faith Insurance?

What is Bad Faith Insurance?

Most people buy insurance to protect their finances in the event of an unexpected accident and others buy insurance because they have to for legal or occupational reasons. In either case, you would expect the insurance you pay for each year to cover you in the way they promised. However, many people are shocked to find that this is not always the case. Some insurance companies do not have your best interests in mind and will use a variety of bad faith practices to avoid compensating you. Do not hesitate to seek help from a Mississippi insurance bad faith attorney if your insurance company has refused to cover you. 

Different Types of Bad Faith Insurance

Auto insurance companies might be some of the most well-known examples of insurance companies that have been known to engage in bad faith insurance practices, but several other companies do the same. Believe it or not, but some health insurance, life insurance, homeowner’s insurance, and disability insurance companies have done the same in the past. 

It helps to know what bad faith practice means. Bad faith insurance means an insurance company has failed to adhere to their policies, refused to compensate you, or used tactics to compensate you What is Bad Faith Insurance?less than you deserve. Mississippi law states that bad faith insurance involves insurance companies that commit wrongful acts, deny claims for insufficient reasons, and act with negligence to deny your rights. 

Bad faith health insurance companies have been known to not cover medical expenses and avoid pre-approval of medical services. Life insurance companies act in bad faith when they fail to pay full policy limits after the loss of a loved one. Homeowner’s and fire insurance companies are known in Mississippi to not pay for damages and deny claims for inadequate reasons. Negligent disability insurance companies will also wrongfully deny benefits to people with sufficient evidence. The same thing happens between auto insurance companies and car accident survivors.   

How to Recognize Bad Faith and Take Action

Recognizing signs of bad faith insurance is vital for protecting your rights to compensation. Being aware of a few common signs could be enough to save you from an unfair deal or situation. These signs come in the form of insurance agent tactics to either wrongfully deny or delay your claim. 

First off, many insurance companies use complex technical jargon in their policies, statements, and contracts for a reason, to confuse customers. If an insurance agent can coax you to sign something that gives them a better deal than you without you realizing it, then they have won. Watch out for insurance agents who make excuses to delay your claim for weeks and then months. This is done to make you miss the statute of limitations. Question agents who deny your claim despite all the evidence you submitted. 

Insurance Bad Faith Lawyer in Mississippi

Dealing with bad faith insurance companies that use confusing statements and excuses as their shield is frustrating at the least. Consider calling Germany Law Firm, PLLC at (607) 487-0555 to speak with a Jackson bad faith insurance lawyer if you have been unable to obtain the compensation you need. Our legal team of bad faith lawyers will investigate your claim and collect the evidence necessary to fight back against bad faith insurance.