Car accidents are unexpected and unfortunate events that can leave you with significant financial burdens. If you are involved in an auto accident in Pennsylvania and the other driver is uninsured or underinsured, you may need to make a claim with your own insurance company. However, it can be frustrating if your insurance company denies or delays your claim payment. In such cases, you may have a legal basis for a bad faith claim against your insurance company. This post will explain what bad faith claims are and how you can make one in the state of Pennsylvania.
Firstly, it’s essential to know what bad faith is in the context of insurance claims. Bad faith generally means that an insurance company has engaged in wrongful conduct to avoid paying a legitimate claim. This can include delaying a claim payment, misrepresenting policy terms, or altogether denying a valid claim. When an insurer behaves in bad faith, a policyholder can take legal action to recover not only the amount of the claim but also other damages, such as emotional distress, attorney fees, and punitive damages.
Secondly, to make a bad faith claim in Pennsylvania, you will need to show evidence that the insurance company acted in bad faith. This can include things like a failure to thoroughly investigate your claim, failing to provide a reasonable explanation for a denial, or ignoring crucial evidence in the claim. You should document everything, including phone calls, emails, and other communications with your insurer. Your attorney can also assist you in gathering evidence of your insurer’s bad faith.
Thirdly, once you have evidence of bad faith, you may file a lawsuit against your insurer in Pennsylvania. In general, when you sue your insurer in Pennsylvania, you will need to demonstrate that the insurance company acted in bad faith with clear and convincing evidence, meaning the evidence is highly probable to be true. Your attorney will file the lawsuit and represent you during the legal proceedings.
Fourthly, when successful, a bad faith lawsuit can result in payment of the original claim plus interest, and a variety of other damages. In most cases, if you win a bad faith claim, you will also receive triple the damages you originally sought. So, if the original damages were $10,000, a court could award you $30,000 in damages, making it a powerful legal remedy for policyholders.
Finally, it’s crucial to note that Pennsylvania has a statute of limitations on bad faith claims. Generally, policyholders must initiate a lawsuit in two years after the bad faith conduct occurred. So, if you think that an insurance company has acted in bad faith, it’s essential to speak with a qualified attorney as soon as possible to protect your rights.
In conclusion, if your insurance company acts in bad faith, you have a legal basis for recovery in Pennsylvania. If you believe you have been wronged by your insurance company, contact an attorney as soon as possible. By retaining a knowledgeable attorney, you can obtain the full value of your insurance claim and prevent future insurance companies from treating you unfairly. Remember, obtaining downstream settlements for these issues can be the best course of action.