What if the Insurer Uses _Bad Faith_ Tactics in a Mississippi Auto Crash Case

What if the Insurer Uses “Bad Faith” Tactics in a Mississippi Auto Crash Case

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After a car crash, you expect your insurance company to be there for you. You pay your premiums with the understanding that if you’re ever in an accident, your insurer will handle your claim fairly and in a timely manner. While most companies live up to this duty, some do not. When an insurance company acts in its own financial interest rather than in the best interest of its policyholder, that company may be acting in “bad faith.”

An insurer’s duty of good faith and fair dealing is a fundamental principle of insurance law. This duty is implied in every insurance contract. When an insurance company breaches this duty, it can be held liable for more than just the original policy benefits. This can include compensation for additional damages, such as emotional distress and even punitive damages designed to punish the insurer for its misconduct.

Common Bad Faith Insurance Tactics

Determining whether an insurer is acting in bad faith can be difficult. The signs aren’t always obvious, and many of these tactics can be disguised as standard procedure. However, there are several red flags to look out for.

  • Failure to Conduct a Proper Investigation: An insurance company has a duty to conduct a thorough and prompt investigation into your accident. This includes interviewing witnesses, reviewing police reports, and examining the scene. If they deny your claim without a proper investigation or ignore evidence that supports your claim, they may be acting in bad faith.
  • Unreasonable Delay in Payment: Insurers are required to process and pay claims within a reasonable timeframe. If your claim is valid and the insurer drags its feet, causing you financial hardship, this could be a sign of bad faith.
  • Unfairly Low Settlement Offers: A common bad-faith tactic is to offer a settlement amount far below the actual value of your claim. This is often an attempt to take advantage of someone in a vulnerable financial position who may accept the lowball offer out of desperation.
  • Misrepresenting Policy Terms: An insurer might try to deceive you by misinterpreting the language of your policy or by claiming coverage you are entitled to does not exist. This is a clear breach of their duty to you.
  • Denying a Claim Without a Valid Reason: If an insurance company denies a legitimate claim and fails to provide a reasonable explanation for the denial, this is a strong indicator of bad faith.
  • Threatening or Intimidating the Policyholder: An insurance adjuster may use aggressive language, threaten to drop your coverage, or pressure you into accepting a low offer. This type of coercive behavior is unacceptable.
  • Failing to Defend the Insured in a Lawsuit: In liability cases, the insurance company has a duty to defend you if you are sued. A refusal to do so, or a failure to provide a proper legal defense, can be considered bad faith.

Proving Bad Faith in Mississippi

To succeed with a bad faith claim in Mississippi, you generally need to show that the insurance company had no “arguable or legitimate basis” for denying your claim. This is a high bar, and it means the insurer’s conduct must be more than a simple mistake; it must be a blatant disregard for its obligations to you.

Proving this involves gathering significant evidence, including:

  • Communication Records: All emails, letters, and phone call notes between you and the insurance company are vital. These records can show a pattern of unreasonable delays or a lack of proper communication.
  • Medical Records and Bills: Your medical documents help establish the full extent of your injuries and the costs you have incurred, proving the actual value of your claim.
  • Accident Reports and Witness Statements: These documents establish the facts of the accident itself, helping to prove that your claim was legitimate.
  • Internal Company Documents: Sometimes, with legal action, we can obtain internal insurance company documents, such as adjuster notes or internal memos, that reveal a decision to deny your claim was based on cost-saving measures rather than a fair assessment of the facts.

What Kinds of Damages Can You Recover in a Bad Faith Claim?

When an insurance company is found to have acted in bad faith, the compensation you may be able to recover extends well beyond the initial policy limits. The goal of a bad faith lawsuit is to make the victim whole again and to punish the insurer for its wrongful conduct.

  • Contract Damages: This includes the full amount of the original claim that the insurer should have paid under the policy.
  • Consequential Damages: This covers any additional financial losses you suffered as a direct result of the insurer’s bad faith actions. This could include lost wages if the delay in payment prevented you from paying bills and led to you missing work.
  • Emotional Distress: The frustration, anxiety, and distress caused by an insurance company’s bad faith can be significant. Mississippi law allows for compensation for this type of emotional suffering.
  • Punitive Damages: In cases where an insurance company’s conduct is particularly malicious, reckless, or fraudulent, a court may award punitive damages. These are not meant to compensate you but to punish the insurer and deter similar behavior from other companies in the future.

Contact Gardner Law Group Today

Facing a difficult insurance company after a serious accident only adds to the stress and uncertainty you’re already dealing with. You shouldn’t have to fight for the compensation you deserve. The team at Gardner Law Group has a track record of helping people across Mississippi hold insurance companies accountable for their actions. We understand the complex laws governing insurance practices in our state and have the dedication to pursue justice on your behalf.

Call us today at (228) 436-6555 for a free, no-obligation consultation. Let us review the details of your case and help you take the next steps.