Getting into a car accident and filing an insurance claim is stressful enough. But when an insurance company like State Farm uses bad faith tactics to prioritize profits over people, the difficulties of a lawsuit are only further compounded, leaving accident victims wondering where they should turn for help.
If you have an insurance claim against a careless driver insured by State Farm and feel that they are not handling the claim in a reasonable manner, then you have a bad-faith claim. Bad faith could be State Farm Insurance has been ignoring you, dragging your claim out, or offering ridiculously low-ball offers.
By law, State Farm is required to act in “good faith” toward their policyholders, so if they’ve failed to provide you with necessary coverage in a timely and fair manner, then we will hold them responsible for the full extent of your damages. Contact Maison Law today for a no-cost, no-obligation consultation to get the legal you need and fair compensation for your auto insurance claim.
Common Customer Complaints Against State Farm Insurance
Despite being the largest provider of auto and homeowners insurance in the United States, and marketing themselves as the “good neighbor,” State Farm’s policyholders file numerous complaints against the insurance company. These complaints have resulted in refunds, fines, and even multi-million-dollar class-action lawsuits. Understanding common complaints against State Farm can help you recognize red flags and know when they may be acting in bad faith. Below are common customer complaints against State Farm:
- Claim Denials and Delays: Unreasonable delays can last weeks or even months, keeping injured victims from getting much-needed medical treatment and financial relief.
- Lowball Settlements: State Farm has been found on numerous occasions to offer quick, lowball settlements that fail to provide financial coverage for repair costs, medical expenses, and missed time at work.
- Premium Increases and Deceptive Pricing: In certain instances, State Farm has exposed unknowing customers to sudden rate hikes exceeding 19% and have failed to notify their policyholders of the drastic changes to their premiums.
- Coverage Disputes and Bad Faith Actions: State Farm has acted in bad faith in the past and has been penalized for denying valid claims without justification, and undervaluing losses in disaster scenarios where property damage is excessive.
- Abrupt Policy Cancellations: Customers have complained of abrupt cancellations without adequate notice, specifically to those who have experienced a natural disaster, or the elderly, leaving without insurance when they need it the most.
How the Law Protects State Farm Policyholders from Bad Faith Actions
As is the case with all insurance companies, State Farm is required to act in good faith on behalf of its policyholders. This involves settling demands within policy limits without excessive delays or denying claims. Unfortunately, it is common for State Farm to drag out claims, deny coverage, or lowball its policyholders or victims unjustly injured by their policyholders.
Fortunately, there are laws created by the Unfair Claims Settlement Practices Regulations (10 C.C.R. 2695.1 et seq.) to protect victims from these bad-faith actions, which include:
- 7(b): Failing to acknowledge or act promptly on claims (15-day acknowledgment, 40-day decision rule)
- 7(d): Failing to affirm or deny coverage within a reasonable time
- 7(g): Failing to settle claims promptly once liability is reasonably clear
- 7(h): Attempting to settle for less than a reasonable person would believe they are entitled
- 7(c): Failing to provide a reasonable explanation for denial or low offer
The Best Way to Handle a Claim Against State Farm Insurance
One thing to remember when filing a claim against State Farm, is that they employ a team of defense lawyers to handle all the claims they receive on a daily basis. As the biggest vehicle insurance company in the United States, you can imagine they deal with all types of claims against them. So, it is important to be prepared when filing a claim against State Farm Insurance.
The first thing you do is to consult with a Bad Faith Attorney at Maison Law. We provide you with a team of lawyers who will enforce State Farm’s requirement to act in good faith toward you and make sure you receive the financial relief you need to get your life back on track. The next step will to be to outline the facts of your insurance claim. This could mean detailing your communications with State Farm, as well as listing all the ways they may have wrongfully denied your claim, delayed your claim, undervalued your damages, or dismissed specific damages involved in your claim.
The more we understand your situation, the quicker we can help you get the compensation you need. Contact Maison Law today for a free consultation and evaluation of your bad faith claim.
Proving Bad Faith Against State Farm Insurance
To prove that State Farm acted in bad faith is not always straightforward. In order to prove bad faith, you must be able to present the following evidence:
- The Existence of a Valid Insurance Contract: there must be a valid contract between you and State Farm. The contract will outline the terms and conditions you and the insurer have agreed to. So, it is important to understand the terms of the contract and to be able to highlight where a violation occurred.
- Unreasonable Denial of Delay of a Claim: you’ll need to show how State Farm denied your claim or delayed processing it without a good reason. This could occur if they ignore evidence that supports your claim, misrepresent policy language, or apply undue scrutiny to avoid payment.
- Failure to Conduct a Proper Investigation. By law, State Farm must perform a thorough investigation of each claim. If they fail to investigate properly or disregard key evidence, then that would be considered bad faith. Evidence of this would be shown through claim denials without providing records of their decision or an investigation.
- Breach of Duty of Good Faith and Fair Dealing: State Farm is required by California Law to act in good faith and deal fairly with policyholders. If the insurance company breaches this duty by acting dishonestly, then you can document their inaccurate statement and hold them accountable for bad faith practices.
Damages You Can Recover from a Bad Faith Lawsuit
In bad faith cases, you can recover three types of damages. These damages include contract damages, extracontractual damages, and punitive damages.
- Contract damages are damages representing the amount of the claim that was denied plus interest. For instance, if you have a health insurance claim for $50k that was denied, the contract claim is that amount plus 10% each year.
- Extracontractual damages are damages to compensate you for any economic, emotional distress, and attorney fees. These damages are to help you recover any type of financial and emotional loss you sustained as a result of the insurer’s bad faith. For example, if you had to borrow money to pay for additional medical care, you can recover interest on that loan. Or if the insurer’s actions forced you into bankruptcy, you can recover the damage to your credit.
- Punitive damages are for malicious, fraudulent, or oppressive behavior, according to California Civil Code Section 3294. These are exemplary damages, served to bad faith insurers to set an example to others as the type of conduct that is not tolerated in the state of California. These damages are rare, but can be applied to a bad faith lawsuit if the insurer deliberately concealed relevant information or consciously violated the rights and safety of the insured.
Contact Maison Law | Bad Faith Insurance Lawyers
If you or a loved one has sustained injuries in an accident and State Farm Insurance has wrongfully denied your claim, delayed payment, or offered an inadequate settlement, the Bad Faith Attorneys at Maison Law can help. We understand how to use the law against insurance giants, and we will not hesitate to file a lawsuit against them or represent you in court until your damages are fully covered
Don’t wait until it’s too late to take legal action. Contact Maison Law today for a free consultation and case evaluation. Our firm does not require any upfront payments for our services, and we don’t get paid unless we win your case.
