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How Do I Know If I Have a Bad Faith Insurance Claim?

Drivers and vehicle owners faithfully pay their auto insurance premiums monthly or quarterly with the belief they will receive a fair claims payout if the need arises (e.g., after a car accident that was not their fault).

Unfortunately, far too many of our clients here at Zarzaur Law, P.A. learn the hard way that car insurance companies are primarily concerned with their own bottom line.


What Is Bad a Bad Faith Claim?

Sometimes, insurance companies like to push boundaries and see if they can get away with not investigating claims or not paying out money owed on a policy after an accident. This is called “bad faith.”

The duty of good faith in Florida provides that insurers owe a “duty to their insureds to refrain from acting solely on the basis of their own interest in settlement,” as was said in State Farm Mut. Auto Ins. Co. v. Laforet. Under Florida’s Unfair Insurance Trade Practices Act.


Bad Faith Claims Most Often Stem From:

Unnecessary claim delays. Insurers are required to process claims in a reasonable amount of time and without unnecessary delays.

Policy cancellations. Our firm has seen cases where an insured files a claim, and the insurer immediately starts scouring their history for errors or any misrepresentation that might void the policy.

This is common when it comes to death benefits claims. Sometimes, it is for something as simple as a misspelled name – even though they had no problem collecting the monthly premium despite this error.

Misrepresentations of policy. Some insurers will attempt to avoid paying claims by mischaracterizing the terms, requirements, and policy provisions. Many insurance policies are crafted with complex language and insider jargon, much of which favors the insurer. But it is well understood that any ambiguity is supposed to be construed in favor of the policyholder.

Ambiguous policy exclusions. Insurance policies can have all kinds of exclusions. But if an exclusion is ambiguous, it should be decided in the claimant’s favor.

Denies paying for a valid claim on no reasonable basis. Insurers have a responsibility to pay valid claims and offer a reasonable basis when they deny them. Failure to do so maybe bad faith. The same goes for low-ball settlement offers that are not justified.

Low settlement offers are often made without justification and for the benefit of the insurance companies bottom line and without regard for the insured.


Bad faith insurance claims are complicated actions and involve a multitude of issues, and that is why it is important to hire the best personal injury lawyer who understands the tactics insurance companies use to delay or minimize the payment of benefits.



If you’ve been the victim of an accident, it’s important that you don’t make any rash decisions. Put yourself in the best possible position to receive the justice you deserve. It is also important to consult with a Board Certified Trial lawyer who has the knowledge and experience to help you. We know accidents can be stressful and want to make the process as easy as possible for you. Call Zarzaur Law, P.A. today at (855) Hire-Joe, or by requesting a free case review through our website.