Bad Faith Bargaining Practices: What They're Not Allowed to Do...

Bad faith bargaining in personal injury claims happens. It isn't as common as some people think, but it does happen. After reading through this website and thoroughly preparing your case, you should be able to present yourself with enough professionalism that an insurance adjuster won't try acting in bad faith.

In case you do get stuck with a bad faith insurance company, here are a few tips to help you handle any underhanded tactics.

The first bad faith insurance practice is telling you that you waited too long to file. This will only happen if you really stretched things out before filing.

The truth is, as long as you're within the personal injury statute of limitations for your state, there's little they can do about the fact that you waited. If there was a great delay in processing your claim, it's their job to prove to a judge that the wait was too long. In almost every case they won't be able to make this stick.

Another common bad faith bargaining practice is the adjuster telling you to settle with the other insurance company. This isn't your job. Until one of the insurance companies you're dealing with informs you that they'll act as the primary insurer, you deal with both companies equally. If they try this, politely explain that they should work out who's going to act as primary amongst themselves.

There are also adjusters who try to argue that if your damages weren't paid out-of-pocket, then they don't have to pay you back. This is wholly untrue. Even if your damages were covered by your own insurance, you still have the right to seek a settlement in a third party claim. The rules of subrogation still apply, but that's between you and your own insurer.

The only time you can't seek a third party settlement is when you've signed away that right to your own insurer, so check with them first.

The mere suggestion of bad faith bargaining practices can often make the adjuster take notice. That doesn't mean you should come right out and accuse the adjuster of acting in bad faith.

You still want the adjuster to like and respect you, otherwise they can make your personal injury settlement negotiations quite difficult. Try to move past everything. If they continue acting bad faith then ask to speak to their supervisor, or take your concerns to your state insurance board.

Sometimes the actual negotiations brushes on bad faith insurance practices. This doesn't apply to cases where you simply can't agree. It's bad faith bargaining when the adjuster doesn't give you reasons to defend their low offer.

If they can't give you reasons or you think their reasons continue to be unjust, you can take the following action:

Write a letter to the adjuster and their supervisor, advising them that you believe they are using bad faith insurance practices. State that you will contact your state department of insurance if matters don't change.

Then be prepared to follow through and actually contact your state insurance board. If the bad faith insurance company continues to work against you, you'll probably have to contact a lawyer and file a lawsuit.