When you purchase an auto insurance policy, the premium you pay entitles you to the terms and conditions of your policy document. If you make an injury claim and the insurance provider fails to live up to these promises, you may be able to sue for bad faith.
Review the Texas laws regarding bad faith and explore whether you may have a case.
Factors in a bad faith case
In Texas, you must prove one or more of the following factors to win a bad faith case against your insurance company:
- Although the insurance company had clear liability, the adjuster unreasonably delayed or denied your claim.
- The insurer refused to investigate your claim
- The insurer refused to confirm or deny coverage for your claim within a reasonable time period.
- The insurer failed to negotiate a fair settlement even with clear liability.
- The insurer provided false information about your policy, the circumstances of the accident or other material facts.
Seeking damages for bad faith
If the Texas court finds that bad faith has occurred, you can receive triple the damages you would have otherwise received. However, you must prove that the insurance company acted purposely and knowingly in bad faith. You can also receive interest on the delayed settlement and coverage for your court costs and attorney fees. You can also file a complaint with the Texas Department of Insurance.
When you have an auto accident in Texas, you can file a claim with either your insurance company or the responsible driver’s auto policy. In either case, keep careful records in case you receive an unwarranted claim denial.