Tips for Avoiding Bad Faith Claims
The purpose of the following tips for avoiding bad faith claims is to help consumers deal with their insurance companies effectively. Bad faith practices are common among some insurers, but if a consumer/policyholder has the right knowledge and help, the chances of an insurer engaging in bad faith practices will be reduced.
Insurance Bad Faith Law Is Complex
As you consider these tips for avoiding bad faith claims, feel free to call upon a professional for help.
(1) Seeking advice and representation from a law firm that represents victims of insurance bad faith may be the single most effective tip for avoiding a bad faith claim. Since insurance law is very complex, insurance companies have their own array of attorneys to argue on their behalf.>/
(2) The vast majority of insurance consumers are not aware of all of the details and provisions of the insurance policies they've signed on for, whether the insurance is for:
- health
- disability
- life
- property
- business
- auto / motorcycle / RV / boat
- another matter
As boring as insurance policies can be, an individual should try to read the policy in depth to understand exactly what he or she is signing up for. Another alternative is to quiz the insurance agent and get at least verbal answers (written is better) for questions such as:
- What events (people, property, etc.) does this insurance cover?
- What will my coverage be if (fill in the blank with a possible event)?
- Is it possible that the premiums I'm agreeing to would ever be increased? Why?
- Is it possible that the insurance company would ever drop my coverage? If so, why?
- How long does this coverage last?
- What is the renewal process for the coverage like? Can I definitely renew the policy?
- Who should I talk to in the event that I need to file an insurance claim?
- If a dispute arises between me and the insurance company regarding a claim, how can it be resolved?
- Is arbitration required for claim disputes?
- How long has your insurance company been in existence?
- Where can I check on the insurance company's "track record" of serving policyholders?
(3) Make sure your insurance agent shows you the parts of the policy that answer these questions. Regarding the last question (checking on the quality of the insurance company), if the agent cannot give you a clear answer, consider going to a different insurance agent and different company.
Talk to a Bad Faith Claim Attorney for More Help
Insurance laws are designed to protect consumers from becoming the victim of the many bad faith practices used by some insurers. To avoid the necessity of filing a bad faith claim, it's a good idea to discuss the insurance policy that you have signed up for (or are considering) with a law firm that handles bad faith claims. For more information or to schedule a FREE evaluation, please contact us today.
Be assured your matters will be in experienced & caring hands.
