Navigating a personal injury claim or an auto accident insurance claim is never as easy as anyone would like it to be. Insurance adjusters know that an unrepresented injured party, most likely don’t know or understand all of the details of their claim. As a result, insurance companies can sometimes begin using bad faith insurance practices leaving the policyholder or the injury party feeling frustrated and betrayed.
What is Bad Faith Insurance?
Bad faith insurance refers to when an insurance company does not act in good faith when handling a claim and does not fulfil its contractual obligations. Examples of this include:
- Denying a claim without a reasonable explanation.
- Failing to investigate a claim.
- Offering significantly less than what the claim is worth.
- Delayed payments.
- Misrepresenting policy terms or coverages.

Identifying Bad Faith Practices
Being able to identify and recognize bad faith practices can prevent a multitude of losses. Some common behaviors include, but are not limited to, a lack of communication from the insurer, excessive delays in your claim without explanation, and settlement offers that are significantly below your losses which lawyers and insurers call damages. Being proactive and looking for these practices can save your claim and as a result save you time and money in the long run.
Taking Action
Unfortunately, insurance companies and their adjusters take advantage of injured people to save money in the settlement process. This is especially true for people who are not represented. For example, earlier this month the Montana Commissioner of Securities and Insurance, Troy Downing, announced that State Farm Mutual Automobile Insurance Co. has paid an additional $5.2 million to Montana residents as a result of improper settling of claims. State Farm had previously been fined $4 million by the Commissioner of Securities and Insurance for unfair settlement practices. See the full announcement here.

If you think you are in a situation where bad faith practices are occurring it is extremely important that you document everything, review your policy, and contact an attorney for guidance. Without an attorney’s guidance you could miss out on a lot of different compensation options. This would include medical payments coverage, bodily injury liability, comprehensive coverage, uninsured/underinsured motorist coverage, and many more. The complexities of insurance coverage can be very confusing without experience. Do not let insurers take advantage of you by using this fact against you.
Additionally, in instances of bad faith insurance practices it may become necessary for you to file a complaint with the Montana Commissioner of Securities and Insurance or even file a lawsuit with the Court. It is important that you contact a reliable attorney to help you navigate the best options for you and your claim. Whether it be compensation, negotiation, settlement, filing a complaint, filing a lawsuit, or even filing a claim, our local Missoula, Montana attorney Eric Rasmusson, is prepared to fight for you.
Call us today at (406) 549-3323 for a free consultation on your personal injury or auto accident claim.