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Can I Sue My Insurance Company for Acting in Bad Faith?

Many people are well aware of the need for insurance companies--minimum coverage is actually a requirement for all licensed drivers. However, the insurance companies are not always honest in how they operate when they must work through a claim with someone who has suffered an injury.


One problem regarding insurance companies is the fact that some may act in bad faith.


After all, insurance companies have a sole focus on making money. They want to charge high premiums and when it’s time to pay out compensation, they’d love to find any possible way to limit how much they pay to a claimant. Unfortunately, this is all too common, and it’s important for those on the losing side of this arrangement to understand their legal rights.


Which Actions are Grounds for Filing a Lawsuit?

When you file an insurance claim, you want to have peace of mind that the process will go right. However, when the insurance company acts in bad faith, you have the right to file a lawsuit to pursue the compensation they’re refusing to payout to you.

Here are some of the things that may warrant a lawsuit:

  • Failure to Defend: When someone accuses you of causing an accident, they file a claim with your insurance company. Your insurance company should live up to the liability coverage which you agreed to, and when they don’t, they may be acting in bad faith.

  • Failure to Settle: If another party is negligent, you file a claim with their insurance company. They have the obligation to settle on behalf of their policyholder based on the coverage provided. Failure to do so is grounds for legal action.

  • Refusal to Pay: When you’re successful in your claim or lawsuit, you expect the insurance company to pay as obligated. When they don’t, it is seen as acting in bad faith and you can go through legal avenues to collect the compensation owed to you.

At Briggle & Polan, PLLC, our Austin bad faith insurance attorneys are your guide when you need us most. We go the extra mile to help you pursue the compensation you deserve. We work on contingency fees so if we don’t win, you don’t pay.

Schedule your free consultation with our team. Call us today: (512) 400-3278.