Experiencing a car accident is stressful enough without adding the hassle of dealing with insurance companies. After a car accident in North Dakota, you expect your insurance company to uphold its end of the agreement and provide the necessary coverage. However, sometimes this is not the case, leading to bad-faith insurance claims.
When an insurance company refuses to pay a claim without a valid reason, they are acting in bad faith. Know the signs of a bad-faith insurance claim and what steps you can take if you find yourself in such a situation.
Signs of a bad faith insurance claim
Recognizing the signs of a bad-faith insurance claim is the first step in resolving the situation. The insurance company may deny your claim without an adequate explanation. They could also delay the investigation or payment of your claim. If you find it challenging to communicate with your insurance company, or if they have misrepresented the terms of your policy, these are potential indicators of a bad faith claim.
Understanding your rights
North Dakota law protects policyholders from bad faith practices. Insurance companies must investigate claims promptly, provide clear reasons for denials and pay valid claims in a reasonable amount of time. If your insurance company is not fulfilling these obligations, they may be acting in bad faith.
Steps to take if you suspect bad faith
If you believe you are dealing with a bad-faith insurance claim, documentation is crucial.
- Keep detailed records of all communications with your insurance company, including dates and summaries of conversations
- Preserve evidence of your claim, such as photos, medical records and repair estimates.
Once you have gathered sufficient evidence, try to negotiate with your insurance company. Explain why you believe your claim is valid and request a comprehensive explanation for any denial. If your insurance company still refuses to act reasonably, you may need to file a complaint with the North Dakota Insurance Department or consider legal action.
Dealing with a bad-faith insurance claim can be stressful and complicated. However, by understanding your rights you can protect yourself and fight for the coverage you deserve.