How To Prove Insurance Bad Faith And The Proof You Need To Do So

On Behalf of | Aug 16, 2023 | Insurance Bad Faith

Suffering a car, pedestrian, bicycle or boat accident is bad enough, so you might assume you are past the worst part. But when your insurance company does not uphold their end of the bargain in helping you investigate, negotiate and ultimately settle your claim, your next uphill battle becomes against those you supposedly looked to for support.

Per Kentucky’s comprehensive list of unfair claims settlement practices, your insurer must act according to the policy you enrolled for. Failure to do so can be a form of misconduct, like misrepresenting relevant facts or policy language, delaying or refusing to pay benefits without proper explanation or neglecting their responsibility to launch an investigation on your case.

But simply denying your claim may not necessarily indicate that your insurer acted in bad faith. Thus, it is critical that you check specific elements with adequate evidence to back them up.

Substantiating insurance bad faith

In establishing a bad faith claim, you must prove your insurer’s noncompliance with paying per policy terms, their unreasonable denial of your claim and reckless disregard of your complaint.

For these factors to hold, you must gather the following information as proof:

  • Your insurance plan
  • Testimonies of expert witnesses
  • Your insurance company’s corporate rules
  • Any form of correspondence or communication between you and your insurer, including significant details of your interactions

The next step is to write an initial letter asking your insurer for applicable adjustments. They may choose to settle amicably. But should they decline to comply, despite your earnest efforts, then it may be time to file a lawsuit.

In pursuit of good faith

An auto accident, on top of a fight against your insurance company, could be too much to bear while you’re still trying to recover your overall physical and emotional wellness. But your legal team may ease your burdens and help you seek the compensation you’re owed.