GET YOUR FREE CONSULTATION
Bad Faith Insurance Tactics: When Your Insurance Company Won’t Pay
Frank Penney • February 25, 2025
Dealing with an insurance company after a car accident can be frustrating, especially if they delay or deny your rightful claim. While insurance companies are supposed to help you recover after an accident, some use bad faith tactics to minimize payouts or avoid paying altogether. If you’re facing this situation, it’s crucial to understand your rights and how to fight back.
What Is Insurance Bad Faith?
Insurance companies in California are legally required to act in good faith when handling claims. This means they must fairly investigate, process, and settle claims in a reasonable time frame. Bad faith insurance practices occur when an insurer unreasonably denies, delays, or underpays a legitimate claim.
Under California law (California Insurance Code § 790.03), insurance companies must not engage in unfair or deceptive practices. If they do, they can be held liable for bad faith insurance practices, allowing victims to sue for compensation beyond their initial claim.
Common Bad Faith Insurance Tactics
If your insurance company is ignoring, delaying, or undervaluing your claim, they may be acting in bad faith. Here are some red flags to watch out for:
1. Unreasonable Claim Denial
Insurance companies sometimes deny valid claims without a clear explanation. They might claim:
- The accident was your fault (even with evidence proving otherwise)
- Your injuries weren’t caused by the crash
- Your policy doesn’t cover the damages (when it actually does)
2. Delaying the Claim Process
Insurance companies often use stall tactics to pressure claimants into giving up or accepting a lower settlement. Delays may include:
- Ignoring your calls and emails
- Taking months to review documents
- Repeatedly requesting unnecessary paperwork
3. Offering a Lowball Settlement
A common tactic is to offer a settlement that doesn’t cover your medical bills, lost wages, or pain and suffering. If the amount seems too low, it probably is.
4. Misrepresenting Policy Coverage
Some insurers misinterpret or misrepresent policy terms to avoid paying. They may claim you don’t have coverage for certain injuries or damages, even when you do.
5. Refusing to Investigate the Claim
Insurance companies are legally required to conduct a proper investigation before denying a claim. If they dismiss your case without reviewing all evidence, they could be acting in bad faith.
What to Do If Your Insurance Company Acts in Bad Faith
If you suspect bad faith tactics, don’t let the insurance company take advantage of you. Take these steps:
1. Document Everything
Keep records of all communication with your insurer, including emails, letters, and claim-related documents. Take notes of phone calls, including the date, time, and what was discussed.
2. Know Your Policy
Read your insurance policy carefully to understand what is covered. If your insurer misrepresents your coverage, you’ll have proof to challenge them.
3. Send a Demand Letter
A formal demand letter outlines your claim, the evidence supporting it, and the insurer’s bad faith behavior. This can sometimes push them to settle fairly.
4. Contact a Personal Injury Attorney
If your insurance company refuses to cooperate, an experienced California personal injury attorney can take legal action. You may be entitled to compensation beyond your initial claim, including punitive damages for bad faith.
How a Lawyer Can Help You Fight Insurance Bad Faith
An experienced personal injury lawyer will:
- Review your claim and identify bad faith tactics
- Negotiate with the insurer for a fair settlement
- File a lawsuit if necessary to recover additional compensation
At Frank Penney Injury Law,
we have a proven track record of holding insurance companies accountable. If your insurer is acting in bad faith, we’ll fight to get you the compensation you deserve. If your insurance company is delaying, denying, or undervaluing your car accident claim, you don’t have to fight alone. Contact Frank Penney Injury Law today for a free consultation. With over 25 years of experience, we’ve recovered $500 million for our clients and won cases against major insurance companies.
You Can Bank on Frank!
The information provided on this blog is for general informational purposes only and does not constitute legal advice. The content presented is not tailored to any specific case or set of facts and should not be relied upon as a substitute for professional legal counsel. Every personal injury case is unique and requires an individualized assessment by a qualified attorney.
We strongly encourage you to consult with a competent attorney to address your specific legal needs and circumstances. This blog makes no guarantees regarding the accuracy, completeness, or relevance of the information provided, and we disclaim any liability for actions taken or not taken based on the content herein.
No Fee Guarantee!
Our legal team understands that life can be very stressful after an accident of any type. The financial costs of your accident can add to that stress. When you are asking for help, this should make your life easier – not more difficult. That is why you do not have to worry about any upfront legal fees and expenses when you hire Frank Penney Injury Lawyers to handle your California personal injury case.
At Frank Penney Injury Lawyers, Frank Penney and his staff work on a contingency basis. This means you only have to pay a fee if you win your case. We will never charge a fee unless we obtain a settlement on your behalf. No win. No fee. Case closed.
This means there is no risk in asking Frank Penney Injury Lawyers for help. You get to benefit from Frank Penney’s years of experience, knowledge, and success without needing to stress about the cost. Call today to set up a free initial case assessment or to learn more.
When I first contacted the Law Offices of Frank D. Penney after my accident, I was frustrated with car insurance companies, and medical insurance companies; after all, I was in pain. He and his staff put me at ease instantly! It was such a relief to have someone working on MY BEHALF! They were able to settle my case for more than I initially thought it was worth. THANKS AGAIN!!!
- KRISTA H.
Read more
client testimonials.
Why Choose Us?
- If You Don’t Win, You Don’t Pay
- Free Case Evaluations
- Over 25 Years of Experience
- Compassionate and Caring
- Highly Rated Reviews
- Proven Track Record
- 24/7 Availability
- Quick Response Time
- And More
Our Recent Blog Posts
A devastating crash on the 15 Freeway in Temecula late Saturday night left four people dead and two others injured after a BMW M4, allegedly driven recklessly, lost control and caused a head-on collision. The California Highway Patrol reported the crash around 9:33 p.m. when the BMW, traveling north of Winchester Road, swerved left, struck a concrete median, and flew into the southbound lanes. The car veered into the far-right lane and collided head-on with a white Nissan Sentra. The BMW burst into flames moments after impact. Good Samaritans were able to pull the BMW’s driver, a 25-year-old man from Moreno Valley, from the burning vehicle. He suffered major injuries and was rushed to a hospital. Tragically, his passengers did not survive. A 23-year-old woman in the front seat and two Moreno Valley teenagers, a 14-year-old boy and a 15-year-old girl in the back, were pronounced dead at the scene. The Nissan’s driver, a 35-year-old man from Wildomar, was taken to a hospital but did not survive the trip. His passenger, a 22-year-old man, remains in critical condition. Authorities said that alcohol does not appear to have been a factor, but charges against the BMW driver are pending as investigators continue to examine the circumstances surrounding what they describe as reckless driving. As of Sunday afternoon, none of the victims had been publicly identified. Experience unparalleled legal representation with Frank Penney Injury Law , the esteemed recipients of the CAOC Trial Attorney of the Year award. With over two decades of dedicated service, our team has consistently delivered record-setting results for accident victims in Northern, Central, and Southern California. Enjoy peace of mind with our no upfront fees policy. Contact us today at 888-888-0566 or through our website www.penneylaw.com for a FREE consultation. Frank Penney Injury Law does not represent any of the parties mentioned above. Nevertheless, we sympathize with the victim and their families in this time of crisis.
A tragic crash on Interstate 80 in Davis claimed the life of 42-year-old Christopher Barr of Dixon early Tuesday morning. According to the California Highway Patrol, the accident happened just before 4:45 a.m. in a construction zone on the eastbound side of the freeway, just west of Mace Boulevard. CHP reported that a Volvo tractor with trailers was traveling in the middle lane when, for reasons still unknown, Barr’s Harley Davidson motorcycle failed to slow down and struck the back of the truck. The impact threw him from the motorcycle, and he was fatally struck by another vehicle that has not yet been identified. Authorities have said that alcohol and drugs do not appear to be factors in the crash. The collision remains under investigation by the California Highway Patrol as they work to determine what led to the fatal chain of events. Experience unparalleled legal representation with Frank Penney Injury Law , the esteemed recipients of the CAOC Trial Attorney of the Year award. With over two decades of dedicated service, our team has consistently delivered record-setting results for accident victims in Northern, Central, and Southern California. Enjoy peace of mind with our no upfront fees policy. Contact us today at 888-888-0566 or through our website www.penneylaw.com for a FREE consultation. Frank Penney Injury Law does not represent any of the parties mentioned above. Nevertheless, we sympathize with the victim and their families in this time of crisis.
A tragic accident in Elk Grove early Friday morning claimed the life of a 21-year-old motorcyclist. According to the Elk Grove Police Department, the crash occurred around 6:15 a.m. on Elk Grove Florin Road just north of Campbell Road. Investigators reported that the driver of a pickup truck towing a trailer was attempting a U-turn into the southbound lane when the motorcycle collided with the truck’s side. The impact threw the rider from the motorcycle, and despite the quick response of medical personnel, the young motorcyclist was pronounced dead at the scene. Authorities have not yet released the rider’s name, awaiting notification of next of kin by the Sacramento County Coroner’s Office. The roadway remained closed throughout the morning as police investigated the crash, reopening to traffic around noon. The Elk Grove Police Department continues to look into the circumstances surrounding the collision and is asking anyone with information to contact their traffic bureau at 916-478-8143. Experience unparalleled legal representation with Frank Penney Injury Law , the esteemed recipients of the CAOC Trial Attorney of the Year award. With over two decades of dedicated service, our team has consistently delivered record-setting results for accident victims in Northern, Central, and Southern California. Enjoy peace of mind with our no upfront fees policy. Contact us today at 888-888-0566 or through our website www.penneylaw.com for a FREE consultation. Frank Penney Injury Law does not represent any of the parties mentioned above. Nevertheless, we sympathize with the victim and their families in this time of crisis.
24/7 Availability – Reach Us by Phone, Email, Chat and More!
If you are involved in any type of personal injury due to the fault of someone else, our experienced team at Frank Penney Injury Lawyers in Roseville, CA can help. We are available to anyone in Northern California 24/7! Give us a call today to learn more at 888-888-0566. We will fight for your rights!
Contact Our Team Today
Frank Penney Injury Lawyers can be reached at the following locations:
No matter where you are in Northern California, or how you reach us, we will be there for you 24/7!
You Can Bank on Frank!
