How to Sue Insurance for Bad Faith in Indiana

Insurance claims are somewhat inevitable. Most people find themselves filing a claim at some point in their lives. If you believe the insurance company is not playing by the rules, speak to a lawyer about the possibility of a bad faith claim.

When insurance companies try to trick their customers or otherwise refuse to abide by legal requirements and rules of the insurance industry, you might be looking at a bad faith claim. Bad faith often involves insurance companies using deceptive or legally unfair tactics to deny claims and save money. In such a scenario, a lawyer can help you sue the insurance company to make them play fair. Talk to a lawyer soon, as the deadline to file –often determined by the policy terms – might be approaching fast. If the deadline has passed, you should still talk to an attorney to determine if you have other legal options.

Contact our Indiana personal injury lawyers for a free case review by calling Wruck Paupore at (219) 322-1166.

What is Bad Faith from Insurance Companies in Indiana and How Do I Detect It?

Bad faith dealings typically occur when an insurance company uses unfair or illegal tactics to deny compensation, stall claims, or deprive claimants of compensation they are legally entitled to. The Supreme Court of Indiana described four elements of bad faith dealings in Eerie Ins. Co. v. Hickman.

First, the court says that bad faith may include making unfounded refusals to pay on a policy. If an insurance company denies your claim, they are legally required to provide an explanation. If you receive no such explanation, get a lawyer right away.

Second, bad faith may involve insurance companies causing unfounded delays. This is an underhanded tactic used by insurance companies to wear claimants down in the hopes that they will give up and walk away. Every year, people walk away from valid insurance claims because the insurance company cannot or will not process their claim, often coming up with bogus reasons.

Third, an insurance company is acting in bad faith if it uses deceptive tactics when dealing with claimants. This could include outright lies from insurance adjusters or information that is not entirely false but misleading. Often, claimants are tricked into accepting lower settlements or into believing their claim is not covered by their policy. Our Indianapolis personal injury lawyers will review your policy and determine if you have been misled or misinformed.

Finally, an insurance company engages in bad faith dealings when using unfair advantages to pressure an insured party into a settlement. If you are pressured into doing something you do not want to do by the insurance company, get a lawyer.

How to Identify Bad Faith Dealings from Insurance Companies in Indiana

One sign of bad faith is being made to wait for an unreasonably long time. Maybe the insurance company says your claim is under review but does not get back to you for months. Maybe you are in more regular communication with the insurance company, but there always seems to be one reason or another why the claim cannot be processed.

You might instead be denied with little to no explanation. When a claim is denied, insurance companies usually send a letter detailing precisely why the claim was denied. If the letter lacks information or is never sent, call a lawyer.

Also, be on the lookout for deceptive practices. Maybe the insurance company changed the terms of your policy without informing you. Maybe they tell you that your claim is not covered by your policy, but your policy clearly says otherwise. Call a lawyer if you believe the insurance company is not playing fair.

Suing an Insurance Company for Bad Faith in Indiana

If the insurance company acts in bad faith, an attorney can help you file a lawsuit. Insurance companies are legally required to adhere to the terms of insurance policies and abide by strict laws that require them to play by certain rules that ensure fairness for claimants. Bad faith is a violation of these rules, and you can sue.

When to Speak to a Lawyer

You should talk to a lawyer about a bad faith claim immediately. Many insurance policies contain specific information on when a claimant may file a lawsuit if they believe the policy has been violated or the insurance company is acting in bad faith. How long you have to sue may vary based on your policy and insurance company. Many insurance companies set relatively short time limits in the hope that claimants will have run out of time by the time they realize the bad faith. Hire a lawyer and have them check your policy.

Gathering Evidence

Your lawsuit requires evidence of the insurance company’s bad-faith dealings. How does one find evidence of bad faith? A good place to begin is with the communications between you and the insurance company. Save any and all emails and letters between you and the insurance company. If certain information was discussed over the phone, follow up those phone calls with emails to create a paper trail.

We should also have evidence that you were current on all insurance payments when you filed your claims. Being behind on payments is a common reason why insurance companies deny claims. We should also have a copy of the insurance policy to see whether it covers your claim.

Damages You May Claim

Damages vary based on the value of the claim that the insurance company denied in bad faith and other costs you incurred as a direct result of the insurance company’s actions. Compensation within the terms of the policy might be quite substantial. Many people need claims fulfilled for accidents, medical costs, property damage, and other expenses.

Additional damages for expenses incurred because of the insurance company’s bad-faith dealings might also be substantial. Legal fees, out-of-pocket expenses, costs related to appealing the denial, and other expenses may be claimed.

Contact Our Indiana Personal Injury Attorneys for Help Now

Contact our Noblesville, IN personal injury lawyers for a free case review by calling Wruck Paupore at (219) 322-1166.