If you get into an accident, you expect your automobile insurance company to cover your losses. This is especially the case if you’ve been a loyal customer and have dutifully paid your premiums on time for years. Unfortunately, it is quite common for insurers to handle claims in dishonest and unethical ways.
Known as bad faith, this behavior could deprive you of the payout you deserve after an accident. But you do have options, and understanding them begins with retaining experienced legal counsel. Count on the Santa Fe personal injury attorneys of Hunt Law Firm.
What Are Bad Faith Insurance Practices?
In general, bad faith refers to any number of dishonest, unethical, or unreasonable behaviors in which insurance companies engage when processing a claim. Policyholders in Santa Fe may experience such practices as:
- Intentionally delayed processing: After being in an accident, victims start to accumulate medical bills and lose time from work. They may become desperate to have their claim processed. Insurers know this, and often drag their feet to pressure the policyholder to accept a lower settlement.
- Unnecessary requests: One specific delay tactic is to make unnecessary requests from the accident victim, such as asking for documents the insurer doesn’t actually need. By taking more time than is needed, the claim gets delayed and the policyholder gets frustrated.
- Misrepresenting the policy terms: Insurers may lie about what the policy does or does not cover. Most policyholders do not understand the legal jargon and technical terms in policies, and may believe these misrepresentations.
- Refusal to communicate: Insurance adjusters and representatives should promptly respond to policyholders. When they don’t, the policyholders could become nervous and more desperate to settle. This tactic often cheats Santa Fe accident victims out of fair compensation.
- Lowball offers: Insurers sometimes intentionally make unreasonably low settlement offers. This is designed to frustrate the accident victim and trick them into believing the claim is worth less than it really is.
- Unfair claim denial: Ultimately, the insurance company may simply deny the claim. It’s likely the insurer did not fairly investigate the claim or just believed the policyholder would go away. Regardless, this leaves accident victims without the compensation they need.
Your Rights as a New Mexico Policyholder
If you were involved in a Santa Fe accident, New Mexico law provides certain protections in your dealings with your insurance company. They include the right to:
- Have the insurance company promptly acknowledge and act upon your claim
- Honest communications from the insurer regarding the substance of your policy
- A reasonable and prompt insurance company investigation of your claim
- Approval or denial of your claim within a reasonable amount of time
- A good faith attempt from the insurer to provide a fair, prompt, and equitable settlement of your claim
- Insurance settlement practices that comply with the New Mexico Unfair Insurance Claims Practices Act (UIPA)
- Sue for violations of the UIPA
Documentation Requirements After a Santa Fe Accident
Your insurance company does have the right to demand certain documents related to your claim. These may include:
- Police accident reports
- Photos and videos
- Repair estimates
- Medical bills and records
- Receipts
- Work records
As mentioned above, however, the insurer cannot make unreasonable document requests of the policyholder. For instance, the insurer should not be asking about irrelevant or difficult to obtain documents like the policyholder’s birth certificate. The amount of documentation should also be reasonable for processing the claim.
How to File an Insurance Complaint
If you believe your insurance company is acting in bad faith, you have the right to file a complaint with the New Mexico Office of Superintendent of Insurance (OSI). We recommend the following steps:
- Document everything you can about the issue you are having with your insurance company
- Organize all evidence related to your loss, including photos and videos
- Ask your insurance company for an explanation of the problem or decision
- Make notes of anyone with the insurer you speak with, including dates of communication
- Make sure you have provided the insurer with everything it has requested
- Take advantage of any appeal or grievance process with the insurer itself
- If you are still not satisfied, file a complaint with the OSI
We strongly advise that you contact an attorney before filing a complaint. We can help you understand your legal rights, ensure that you take appropriate action before any important deadlines expire, and fight for the resolution you deserve.
If you were hurt in a Santa Fe automobile accident and are not receiving fair treatment from your insurer, connect today with Hunt Law Firm.