Insurance should serve as a safety net, not a trap.
However, a recent CBS “60 Minutes” investigation exposed how some of the biggest insurance companies routinely delay, underpay, or outright deny valid claims — all to protect their profits.
This practice, known as bad faith insurance, occurs when an insurer unfairly denies, delays, or lowballs a legitimate claim. While insurance companies are legally required to act in good faith, many put profits ahead of policyholders, leaving injury victims stuck with unpaid medical bills, lost wages, and mounting stress.
If your insurer is stonewalling you, it may be time to fight back. A bad faith insurance lawyer will challenge unfair tactics, force insurers to honor their obligations, and help you recover the settlement you rightfully deserve.
Here’s what you need to know:
What Is a Bad Faith Insurance Claim?
Insurance companies have a legal obligation to handle claims fairly, but sometimes they put profits over policyholders. When an insurer delays, denies, or undervalues a legitimate claim without a valid reason, that’s bad faith insurance.
This unfair practice can leave injured victims without the financial support they need to recover.
Common Bad Faith Insurance Tactics
Bad faith insurance comes in many forms, but here are some common red flags:
- Unreasonable delays: The insurer takes too long to process or pay out a claim, hoping the policyholder gives up.
- Wrongful claim denials: A valid personal injury claim is denied without a clear explanation or based on misleading interpretations of the policy.
- Lowball settlement offers: The insurer offers far less than what the claim is worth, pressuring the claimant to accept a quick payout.
- Failure to investigate: The insurer ignores evidence, refuses to assess damages properly, or dismisses expert reports.
- Misrepresenting policy terms: The company falsely claims that the policy doesn’t cover certain damages or excludes key benefits.
- Deliberate misinformation: Insurers may withhold critical details about coverage or legal rights to manipulate policyholders into accepting less.
Legal Protections Against Bad Faith Insurance
Bad faith insurance is illegal, and policyholders have legal options if they suspect unfair treatment. State laws and consumer protection statutes hold insurers accountable for dishonest practices.
Victims can file a bad faith insurance claim to recover their rightful compensation — and, in some cases, pursue additional damages for financial hardship caused by the insurer’s misconduct.
If an insurer is acting in bad faith, consulting a bad faith insurance lawyer can help level the playing field. These attorneys know how to challenge unfair claim denials, negotiate better settlements, and take legal action if necessary.
How Bad Faith Insurance Affects Your Personal Injury Settlement
A personal injury settlement provides financial relief after an accident, covering medical bills, lost income, and other damages. But when insurance companies act in bad faith, they can make the process unnecessarily difficult, leaving victims without the compensation they deserve.
Here’s how bad faith insurance tactics can derail a personal injury settlement:
Delays in Compensation
Some insurance companies intentionally drag out the claims process, knowing that financial stress can force victims into accepting less than they deserve. These delays can take many forms:
- Repeatedly requesting unnecessary documents.
- Failing to return calls or respond to inquiries.
- Claiming an investigation is still “ongoing” without justification.
For injured victims, these delays can mean missing critical medical treatments, struggling with daily expenses, or even facing debt collection for unpaid bills.
Lowball Settlement Offers
Even when an insurer acknowledges a valid claim, they may offer a settlement far below what’s fair. This is a classic bad faith tactic, designed to pressure claimants into accepting less money than they need.
Lowball offers often come with statements like:
- “This is the best we can do.”
- “Your injuries don’t warrant a higher payout.”
- “You don’t have enough evidence to justify more compensation.”
These tactics exploit victims who are struggling financially and need money quickly, but accepting a low offer can leave long-term medical expenses and other damages uncovered.
Increased Financial Burden
Bad faith insurance practices add stress to an already difficult situation. Without a fair settlement, victims may face:
- Unpaid medical bills that continue to pile up.
- Lost wages with no financial safety net.
- Emotional distress from fighting an uphill battle with the insurance company.
These bad faith tactics from insurers can completely derail the legal process and put your rights at risk. Arm yourself with the knowledge to do all you can to avoid these roadblocks.
Signs That You’re Dealing With a Bad Faith Insurance Company
Insurance companies are supposed to handle claims fairly and in good faith. That doesn’t mean they will, though.
If you’re struggling to get answers from the insurance company or facing unnecessary roadblocks, pay attention — your insurer may be acting in bad faith. Here’s what to look for to avoid becoming a victim of bad faith insurance.
Unreasonable Delays in Processing Claims
If your claim has been stuck in limbo for weeks or months, and you’re constantly being told to “wait for updates,” that’s a red flag. Some insurers use delay tactics — claiming they never received paperwork, asking for excessive documentation, or repeatedly saying they’re “still reviewing the case.”
The longer they stall, the more pressure they put on you to accept a lower offer or give up entirely.
Lack of Communication or Vague Responses
A responsive insurer should provide clear updates about your claim. If your adjuster ignores your calls, sends generic emails, or avoids giving straight answers, they may be intentionally withholding information.
Be wary of vague responses like “we’ll get back to you soon” or “your claim is under internal review.” When an insurer refuses to explain what’s happening, it often means they’re working against you — not for you.
Unjustified Denial of a Valid Claim
A claim denial should come with a clear, reasonable explanation. If your insurer rejects your claim without evidence or cites a technicality that doesn’t seem relevant, they may be trying to avoid paying.
Some companies use blanket denials, assuming that policyholders won’t fight back. If you know your claim is valid but are being told otherwise, push for answers.
Failure to Investigate the Case Properly
An insurer is legally required to conduct a fair and thorough investigation before making a decision. If they fail to review your medical records, ignore key evidence, or dismiss your claim without gathering all the facts, they’re not acting in good faith.
Rushing through an investigation — or skipping it altogether — is a tactic used to deny or undervalue legitimate claims.
What to Do If You Suspect Bad Faith Insurance
If your insurance company is delaying, denying, or undervaluing your claim without justification, you may be dealing with bad faith insurance. But you do not need to accept it.
Here’s your action plan if you suspect bad faith insurance.
Step 1: Document Everything
Keep a detailed record of all interactions with the insurance company. This includes emails, phone calls, letters, and any explanations they provide (or fail to provide). Write down:
- The date and time of every conversation.
- The name of the representative you spoke with.
- A summary of what was discussed.
If the insurer changes their story or contradicts previous statements, having clear documentation can expose their bad faith tactics.
Step 2: Request a Written Explanation for Any Denial
If your claim is denied, ask for a written explanation detailing the reason.
Insurers are legally required to justify claim denials, and their response could reveal inconsistencies, misinterpretations, or outright lies. A vague or unclear response is often a sign that the denial isn’t valid.
Step 3: Gather Evidence to Support Your Claim
The stronger your evidence of an insurance company’s conduct, the harder it is for an insurer to justify their bad faith behavior. Collect:
- Medical bills and records related to your injury.
- Photos or videos of the accident or damages.
- Your insurance policy, including coverage details.
- Any prior communications with the insurer.
Having everything organized will make it easier to challenge their actions and prove your case.
Step 4: Consult a Bad Faith Insurance Attorney
At this stage, bringing in a legal expert is often the smartest move. Insurance companies have teams of lawyers on their side—having an experienced attorney in your corner levels the playing field.
Step 5: Take Legal Action If Necessary
If your insurer refuses to cooperate, legal action may be the only way to recover what you’re owed.
A bad faith insurance lawsuit will not only secure your rightful settlement but may also lead to additional damages. These also include punitive damages if the insurer’s conduct was particularly egregious.
How a Bad Faith Insurance Lawyer Can Help
Bad faith insurance is beyond frustrating. It can cost you the settlement you deserve. A lawyer specializing in bad faith litigation cases can cut through the excuses, expose the delays, and force the insurer to act in good faith.
First, they investigate the claim, reviewing your policy, past communications, and the insurer’s handling of your case. If legal violations are found, they can take swift action and draft a bad faith lawsuit.
If the insurer refuses to cooperate, filing a lawsuit can apply the pressure needed to secure a fair settlement. In some cases, insurers may even be forced to pay more than the original claim, covering damages caused by their bad faith tactics.
Suspect your insurance company is working against you? Don’t wait. A bad faith insurance lawyer will protect your rights and fight for the settlement you’re owed.
Don’t Let an Insurance Company Dictate Your Future
Bad faith insurance can turn a difficult situation into a financial nightmare. When insurers delay, deny, or devalue legitimate claims, injury victims are left struggling with medical bills, lost wages, and mounting stress.
But you don’t have to face it alone.
At Manning Law, we know how to hold insurers accountable and fight for the compensation you deserve. Whether your claim has been unfairly denied, stalled without reason, or undervalued, our team is ready to step in. Our bad faith lawyers know what to look for — and we’re ready to pounce. Our team will review your case, challenge bad faith tactics, and take legal action if necessary to secure the settlement you’re owed.
The longer you wait, the more leverage the insurer gains. If you believe your claim is being mishandled, now is the time to act. Take control, and contact Manning Law today!
