Being involved in an accident where your car is totaled is traumatizing enough without having to worry about whether your insurance company is going to represent you in good faith. If your car was totaled, and you have reason to believe that your insurer is acting in bad faith, it is vital that you contact an experienced bad faith insurance attorney who can ensure that your rights are protected and you receive the compensation that you deserve.
Signs of Bad Faith
If your case involves one of the five factors listed below, your insurer may be acting in bad faith.
Auto Insurance Claim is Less than the Value of the Car
Insurance companies use one of three methods to determine the value of a totaled car, including:
- Computerized vendor quotes;
- Value books, such as Kelley Blue Book; and
- A market search of the local area.
However, what constitutes a “local area” is not always defined, and it is often unclear which method the insurer will use to assess a vehicle’s value.
Insurer Significantly Increases or Cancels a Policy as a Result of a Claim
Insurance companies may not cancel a person’s coverage due to the fact that the policyholder was in an accident. If an individual has diligently paid his or her insurer’s premiums, but the insurance company significantly increases the cost of a policy or cancels it outright, the company has most likely failed to act in good faith.
Insurer Advises Claimant Not to Hire a Lawyer
Advising a client not to retain legal assistance constitutes a violation of an insurance company’s implied duty of good faith and fair dealing.
Intentionally Withholds, Misinterprets, or Misconstrues Claim Information
Insurance companies are not permitted to withhold material facts or misrepresent relevant information. If an insurer is aware of a policy’s provision that would allow for coverage of the accident, it cannot withhold that information without acting in bad faith.
Fails to Inform Policyholder of Coverage and Provisions in the Policy
Insurance companies are required to keep their clients informed of benefits and additional coverage detailed in a policy, and a failure to do so may indicate that the insurer is acting in bad faith.
Contact Our Legal Team Today
When an insurance company acts in bad faith, the results can be financially ruinous for a policyholder. It is vital that if you have been the victim of your insurer’s bad faith, you contact an experienced attorney who can defend you. Please contact one of our experienced bad faith insurance attorneys at the Bennett Law Firm, at 405-272-0303.