Alaska residents and businesses count on their insurance companies to protect them after an accident. When you file a claim, you expect your insurance company to treat you fairly and do what they are supposed to do, which is provide compensation for your losses.
An insurance company who fulfills these promises is acting in good faith, but an insurance company who does not hold up their end of the deal is acting in bad faith.
What is bad faith?
Bad faith is a deliberate attempt by an insurance company to avoid paying you compensation for a valid claim. A main reason insurance companies may act in bad faith is their primary goal is to make a profit. The less they pay to their policyholders, the more profit they make.
But how can you tell if your insurance company is acting in bad faith? Sometimes a claim is denied for legitimate reasons, such as being outside of coverage limits or failure to file a claim within a deadline.
Here are some signs an insurance company might be acting in bad faith after an accident.
Delays and poor communication
Intentionally delaying the process could be a sign of bad faith. As part of the claim process, you must submit documentation and evidence.
However, if the insurance company keeps requesting additional information or saying the documentation you provided is not good enough, they might be trying to get you to accept a lower offer or make the process so difficult that you give up.
Lack of communication is another sign of possible bad faith. An insurance company should promptly respond to your contact requests and provide you with timely and accurate information. This might also be an attempt to frustrate you so that you give up on pursuing the claim.
Pressuring you to settle
Sometimes the opposite is true. Your insurance company may keep contacting you and pressuring you to accept an unfair offer, hoping you will accept it not knowing any better.
There is usually no clear sign that your insurance company is acting in bad faith; it is sometimes a gray area. If you believe they are, there are steps you can take to protect yourself.