When you’re injured in a car crash, slip-and-fall, or another serious incident, your insurance policy is supposed to provide financial protection and peace of mind. You pay premiums with the expectation that your insurer will process your claim promptly and fairly. However, in some cases, insurance companies engage in bad faith conduct, meaning they fail to act honestly or reasonably when handling your claim. After an accident, you can find yourself in a vulnerable position, lacking the funds needed for medical bills, property repairs, and lost wages. Understanding what counts as insurance bad faith is crucial for protecting your rights. 

Insurance bad faith occurs when an insurer breaches its obligation to treat policyholders fairly under Missouri law. This duty includes properly investigating claims, communicating honestly, and paying benefits when liability is clear. Bad faith can take many forms. Some insurers may unreasonably deny a valid claim without providing a legitimate explanation. Others may deliberately drag out the claims process, using stalling tactics to avoid paying promptly. In some cases, insurers misrepresent policy terms, provide misleading coverage information, or fail to respond to inquiries altogether. Another common tactic is to offer an unreasonably low settlement, hoping that the policyholder, under financial pressure, will accept less than they deserve. 

The impact of bad faith after an accident can be significant. Victims rely on insurance payouts to cover immediate expenses, such as hospital bills, rehabilitation costs, and vehicle repairs. When payments are delayed or denied, individuals may struggle financially, risk debt accumulation, or feel forced into accepting inadequate settlements. This is why Missouri law gives policyholders the right to take insurers to court for bad faith actions. A successful claim can result in recovering not only the original compensation owed but also additional damages caused by the insurer’s misconduct. In some situations, courts may even award punitive damages to discourage similar behavior in the future. 

If you believe your insurer might be acting in bad faith, it’s essential to take proactive steps. Keep records of every conversation, email, and letter exchanged with the insurance company. Request written explanations for any denial or delay. Review your policy to ensure you fully understand your coverage and its limitations. Most importantly, consult a skilled personal injury attorney as early as possible. An experienced lawyer can assess your case, identify signs of bad faith, gather the evidence needed for legal action, and negotiate with the insurer—or take them to trial if necessary. 

Delays, lowball offers, and refusals to properly investigate claims are red flags that your insurance company may not be playing fair. After an accident, you shouldn’t have to battle your insurer for the coverage you are entitled to. Legal guidance can level the playing field and improve the chances of securing fair compensation. If you suspect your insurance company has acted in bad faith in Missouri, contact Gunn | Slater today for a free consultation. We will review your claim, explain your legal options, and work tirelessly to ensure you receive the protection you deserve.