If you have been injured in a Texas accident, you will likely turn to insurance to help cover your unexpected damages. Unfortunately, not all insurance companies treat claimants fairly, and they need to be sued to be held accountable.
Our lawyers are quite familiar with the tactics insurance companies use to deny injury victims the compensation they are owed, and they can help you prove this in a lawsuit for bad faith. Insurance companies must act in good faith, which means investigating the accident and settling when liability is clear. However, insurance companies know how to blur the line between what conduct is reasonable and unreasonable. To fight your case, you will want attorneys experienced in bad faith claims, not just the insurance claims process. We can quickly determine if you are the victim of bad faith practices and whether filing a lawsuit will get you the compensation you deserve.
Call The Queenan Law Firm, P.C. at (817) 476-1797 for a free case review with our Dallas bad faith insurance lawyers.
How to File a Lawsuit Against an Insurance Company After an Accident in Texas
Insurance is necessary to protect our families and assets from accidents and natural disasters. However, most of us understand that insurance companies are not in the business of providing “help” but making profits. They do not make money by approving claims. Instead, they collect premiums and often look for ways to deny claims to increase those profits. Fortunately, Texas law places certain duties on insurance companies to handle claims in good faith and uphold their duties.
If an insurance company has acted in bad faith to lower or deny your claim, you could file a lawsuit against them to recover what is owed in the policy plus additional damages for the bad faith conduct. Our Texas bad faith insurance attorneys can determine what tactics the insurance company used and how to prove them in court. We will first want to figure out if you are suing an insurance company that you have a policy with or a third-party insurance company from which you are attempting to recover damages. Texas provides ways to file a lawsuit in either case.
Claims Against Your Own Insurance
In some cases, you might need to sue your own insurance company for bad faith. This typically occurs when insurance providers delay or do not pay out on homeowner claims, uninsured motorists coverage, or health insurance. When the lawsuit is against your own provider, our team can help you file a case under Tex. Ins. Code § 541.003, also known as the “Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Act.” Under this law, it is a civil violation to act unfairly or deceptively when processing insurance claims.
Claims Against Third-Party Insurance
If you need to file a claim against an insurance company you do not have a policy with, you can still file a claim under § 542.003, the “Unfair Claim Settlement Practices Act.” These claims are common, like suing another driver’s insurance company for failing to process a claim. This law prohibits numerous practices an insurance company might engage in to frustrate a claim, discussed in more detail below.
However, insurance companies are skilled at masking these behaviors and making their delays seem reasonable. Our team can help identify signs of bad faith and whether it is time to file a lawsuit. Even better, contact our lawyers before filing your claim, which is the best way to keep the insurance company honest throughout the process.
What Are Some Common Examples of When an Insurance Company in Texas Acts in Bad Faith?
The laws above list several practices that insurance companies are prohibited from engaging in. If you suspect or have noted any of the following tactics used in your claim, contact our attorneys to see if it rises to the level of bad faith in Texas:
Misrepresentation
Insurance companies have a duty to represent material facts and policy provisions honestly, as per § 542.003(b)(1). However, many policies are written to be purposefully confusing. Insurance companies often twist the words in a policy to deny coverage. Our attorneys can review your policy and make sure the provider is not misconstruing the facts in your case.
Failing to Acknowledge a Claim
Insurance companies must also acknowledge a claim promptly, according to § 542.003(b)(2). They cannot ignore claims, emails, or communications from attorneys in the hopes a claimant will go away. Under § 542.055(a), insurance companies generally have 15 days to acknowledge your claim from the date you file. If they give you an unreasonable excuse for the delay or do not acknowledge your claim at all, contact our team.
Failing to Investigate a Claim
If the insurance company does accept your claim, it might drag its feet during the investigation. It might claim the case is complicated, so the investigation is delaying payment. However, § 542.003(b)(3) compels insurance companies to investigate claims promptly. If they take too long or deny your claim without an investigation, the company can be sued for bad faith.
Not Settling a Claim in Good Faith
Insurance companies must also settle claims promptly and in good faith when liability is reasonably clear, according to § 542.003(b)(4). When our team goes to settle a case, we typically have all the evidence we need to show liability. Some insurance companies try to unreasonably draw out negotiations this way to wear down your resolve. If there is little room to argue liability in your case, we can threaten a bad faith lawsuit if your claim is not processed immediately.
Offer a Substantially Low Settlement
Some insurance providers offer settlements without delay, but they are made so low that they know you would have to file a lawsuit to recover the difference. § 542.003(b)(5) makes it a bad faith practice to compel a claimant to file a suit by offering substantially less than what the policy calls for.
Unreasonably Delaying a Claim
Insurance companies can engage in many other practices that end up delaying your claim. It is important to review their conduct thoroughly to determine what behavior is reasonable or unreasonable. Sometimes, the delay is reasonable, such as when an insurance company needs more time to investigate the cause of a complex accident.
In many other cases, though, unreasonable tactics are used to delay the claim in an effort to make you more desperate to settle for the money you need. Besides the conduct listed above, the insurance company might have been outright lying to you. They could also use procedural delays to frustrate your claim, such as requesting irrelevant documents or changing adjusters for no reason. § 542.003(b)(7) makes all unfair settlement practices illegal if it can be shown they were unreasonable.
Our Texas Bad Faith Insurance Lawyers Can Help You Get Justice
For a free case evaluation with our Arlington bad faith insurance attorneys, contact The Queenan Law Firm, P.C. at (817) 476-1797.