Bad Faith Auto Insurance Claims
Being involved in a motor vehicle accident is emotionally and financially draining. Dealing with an insurance company that fails to act in good faith to honor your insurance policy makes the situation much worse. Sometimes, the insurance company’s desire to maximize their profits leads them to think of you only as a number.
What Constitutes A Bad Faith Claim?
Your insurance company owes you a duty of good faith and fair dealing. It can be incredibly frustrating when an insurance company fails to conduct a thorough investigation into your claim in a timely fashion or fails to pay you the full value of the claim. The way you fight this is by filing a bad faith claim against your insurance company.
Issues of fair compensation are at the heart of all bad faith claims. This may take the form of deceptive practices on the part of your agent, intentionally misleading you or giving an unfair interpretation of your coverage. Sometimes insurance companies will simply deny their contractual obligation to you without giving you a justification for denying your claim. When your insurance company fails to honor your policy, we are here to help.
Filing A Bad Faith Claim
There are three parts to filing a bad faith claim. First, you must prove that the terms of your contract require your insurance company to pay. Next, you must prove that details of your claim qualify for coverage under the terms of your contract. The last step is to prove the insurance company acted in bad faith. The types of compensation you can pursue include:
- The legitimate value of your claim
- Expenses related to hiring a lawyer
- Punitive damages (in cases of fraud, malice or oppression)
Punitive damages are meant to punish the insurance company and set an example to prevent other insurance companies from acting in bad faith. In Nevada, punitive damages are added after you have been compensated for your actual expenses.