After an accident, you expect your insurance company to uphold its end of the bargain—to handle your claim reasonably, investigate promptly, and pay valid benefits when owed. Unfortunately, some insurance companies engage in bad faith practices, prioritizing profit over policyholders. When this happens, Missouri law provides critical legal protection for victims. Understanding these rights can make all the difference when you’re facing resistance from an insurer after a crash or serious injury. 

Under Missouri law, every insurance policy carries an implied duty of good faith and fair dealing. This means your insurer must act honestly, reasonably, and responsibly when handling your claim. They are required to promptly investigate, communicate openly, and pay legitimate claims without unnecessary delay. When an insurer fails to meet these obligations—such as denying a valid claim, ignoring communications, offering a lowball settlement, or dragging out payment without justification, it may be considered acting in bad faith. 

Missouri distinguishes between two main types of bad faith claims: first-party and third-party. First-party bad faith occurs when an insurance company mistreats its own policyholder—for example, by refusing to pay medical or property damage claims submitted under that policy. Third-party bad faith arises when a liability insurer fails to reasonably defend or settle a claim against its policyholder, exposing that person to personal financial risk. In both scenarios, the insurer’s misconduct violates the policyholder’s right to honest and timely claim handling.

Victims of bad faith in Missouri have strong legal options. State law permits policyholders to file a bad faith lawsuit against the insurer to recover the compensation they were owed initially, plus additional damages. These may include the financial losses caused by the delay, attorney’s fees, and, in certain egregious cases, punitive damages designed to punish the insurer and deter similar behavior in the future. Missouri’s courts take these claims seriously because they recognize how devastating insurance misconduct can be, especially when victims are coping with medical bills, car repairs, or the aftermath of a severe accident. 

If you believe your insurance company is acting in bad faith, there are several steps you should take to protect yourself. Keep a clear record of all claim communications, including emails, letters, and phone calls. Request any denial or delay explanations in writing. Review your insurance policy carefully to understand your coverage limits and responsibilities. Most importantly, speak with an experienced Missouri personal injury attorney who understands bad faith law and can evaluate whether your insurer’s actions violate state regulations. 

When an insurance company intentionally breaks its duty to act in good faith, it can compound the stress and financial strain victims face after an accident. Legal action not only helps individual policyholders recover what they are owed, but it also holds insurers accountable for unethical and unlawful conduct. If you suspect your insurance company is delaying or denying your claim without justification, don’t wait for the situation to worsen. Contact Gunn | Slater for a free consultation. We help Missouri accident victims stand up to bad faith insurance practices and fight for the fair treatment and compensation they deserve.