PA Auto Insurance Dispute Attorneys & Insurance Lawyers Near You
You’ve been in an accident, but both you and the negligent party involved in the accident are insured, so you shouldn’t have anything to worry about, right? Unfortunately, that’s not necessarily the case. In some situations, you may find that the insurance company that should be paying your claim is either dragging its feet in coming up with a settlement or trying to get you to settle for an initial lowball offer that’s far less than you should be compensated for the accident. That’s why it can be beneficial to look into getting an insurance lawyer in Pennsylvania who’s on your side.
Aren’t All Insurance Companies Required to Pay Claims in PA?
Insurance companies are willing to do anything possible not to have to make a payout on an insurance claim or to pay as little as possible. Insurance companies are like any other company in that they are always thinking about their bottom line, and being overly generous with insurance claims cut into that bottom line. So, while insurance companies are required to pay valid claims, they will work hard to ensure that there are reasons as to why a particular claim shouldn’t be paid, such as claiming that you were also at fault for the auto accident. Getting a Pennsylvania insurance dispute lawyer near you can let the insurance company know that you aren’t going to be a pushover and it helps them take you more seriously. Contact us.
Bad Faith Insurance Companies: Why You Need a Pennsylvania Insurance Claims Lawyer Near You
Insurance companies are governed by laws that require them to act in good faith in fulfilling any obligations written out in an insurance policy. Unlike other states, Pennsylvania has a specific law or statute for a private cause of action against an insurance company for bad faith. If you’re searching for lawyers who sue insurance companies near me, Pennsylvania residents should note that the law passed in 1990 in Harrisburg, PA, and can be found at 42 Pa.C.S. § 8371. This law or statute provides a private cause of action for insurance policyholders who feel their insurers have handled their first-party claims in bad faith. If the court finds the insurer has acted as such, it can levy interest, court costs, attorneys’ fees, and punitive damages against the insurer. What the statute lacks, however, is a definition of what exactly would be considered “bad faith”. However, the courts seem to find that any frivolous or unfounded refusal to pay the proceeds of a policy can be considered bad faith. Courts have defined a two-pronged test that an insured must demonstrate that the insurer: “(1) did not have a reasonable basis for denying benefits under the policy; and (2) defendant knew or recklessly disregarded its lack of reasonable basis in denying the claim.”
What Constitutes Bad Faith on an Insurance Company’s Part?
You purchased insurance to protect you in case of a calamity, such as your home burning down or a car accident. You’ve paid your premiums, and when the event happens that you have the insurance to cover, you think that your claim will be paid in the same manner as any of your other dealings with the insurance company. It can be shocking to find that’s not the case. You may find that your insurance company drags its feet in the claims process, only approves certain portions of your claim, or, even worse, denies your entire claim outright. By doing this, the insurance company isn’t handling the claim in good faith. They are operating in bad faith and may be using illegal methods to justify their actions.
Examples of Bad Faith Practices By Insurance Companies
Here are some examples of bad-faith insurance practices that happen:
- Unreasonably delaying your claim
- Failing to explain a denial
- Not investigating your claim thoroughly
- Neglecting to secure evidence in a timely manner
- Ignoring evidence that supports the claim
- Not defending the policyholder against lawsuits that the liability insurance policy should have covered
- Making threats against the claimant
- A refusal to make an offer
- Not making a fair and reasonable settlement offer
- Interpreting vague or overly complicated policy language deliberately to deny claims
- Misrepresenting the policy
- Not communicating with the claimant regarding their claim in a timely fashion
- Any other deviation from insurance industry standard practices
If you believe your insurance company has been improperly handling your claim, it may be time to speak with an insurance claim lawyer near you. Contact us today to speak with a Philadelphia insurance bad faith lawyer.
Two-Part Test for Determining Bad Faith
While the statute, 42 Pa.C.S.A. § 8371, governing bad faith insurance in Pennsylvania is not specific on what bad faith is or how a claimant can prove the insurance company acted in bad faith, a test was created by the Pennsylvania Supreme Court for the case of Rancosky v. Wash Nat’l Ins. Co., 170 A.3d 364, 376 (Pa. 2017) that can help.
- The claimant must have clear proof that the insurance company acted unreasonably in denying the policy claim.
- Also, the claimant has to show that the insurance company knew that the company was acting unreasonably.
You’ll want to keep all of your insurance documentation, any police reports regarding the event, and any communications from the insurance company to assist you in your bad-faith claim. Speaking with an experienced Philadelphia insurance bad faith lawyer who understands best practices on bad faith insurance claims can help you determine whether or not a claim is possible in your case.
What Happens if the Insurance Company Is Found to Have Acted in Bad Faith?
When the courts have determined that the insurance company was indeed acting in bad faith towards the claimant, several actions can be taken. They can award the claimant interest on the amount of the claim, which would be the prime interest rate with an additional 3%. The courts can also award punitive damages to the claimant in an effort to punish the insurance company for their bad faith actions. In addition, the court can require the insurance company to pay for the court costs and the claimant’s insurance attorney fees.
Do You Need an Insurance Dispute Lawyer in PA?
Contact us. You may not have realized that you need an insurance dispute lawyer in Pennsylvania to help you get your insurance claim paid, especially when personal injuries are involved. Most people aren’t aware of how hard some claims can be to get paid out. Having a lawyer on your side can be beneficial. An experienced legal team that’s been in negotiation and has litigated against insurance companies in the past understands the different plays that insurance companies use to try to escape from paying out a fair settlement amount when you have been injured. They are better able to see the tricks they use and know how to combat them to get you a payment.
When you need a Pennsylvania insurance claims lawyer after suffering an injury, you can rely on the legal team at The Pearce Law Firm, Personal Injury & Accident Lawyers. Need a lawyer to sue your car insurance company or simply looking for auto insurance legal advice? Leverage our experience dealing with insurance companies to assist you in getting your Pennsylvania insurance claim paid. But, first, contact a car accident lawyer in Doyletown, PA and the surrounding areas today if you have suffered an injury to discuss your current difficulties with handling your insurance dispute. Then, our staff can help review your options depending on the specifics of your cases and how best to move forward.
