You paid your premiums every single month.
When you get into an accident you assume your insurance company has your back. That’s what they are there for! WRONG… Insurance companies are a business. They make more money by paying you less.
Bad faith occurs when your insurance company treats you unfairly following an accident. They may drag their feet on your payout. They could deny you a claim that was valid. They may lowball you in hopes that you’ll just settle.
Let’s jump in!
What’s Inside This Guide:
- What Is Bad Faith Insurance?
- The “Delay, Deny, Defend” Playbook
- How Bad Faith Affects Your Pain and Suffering Damages
- How To Protect Yourself
What Is Bad Faith Insurance?
Bad faith insurance is when an insurer breaks the promise they made to you.
Policies contain obligations. Your insurance company is obligated to process your claim in good faith. Failure to do so is known as acting in bad faith. This means they are doing more to profit, than help you recover.
Here are some common examples of bad faith:
- Denying a valid claim: Rejecting it with no real reason behind it.
- Delaying your payout: Dragging things out, hoping you’ll settle for less.
- Lowballing your settlement: Offering way less than your claim is worth.
- Twisting policy language: Using confusing wording to argue you’re not covered.
Not all claims denials amount to bad faith. Some may be legitimate disputes over whether there is coverage. However, if the insurer has been unreasonable or unjustified, then that is bad faith.
This is more important now than ever before. If you’re dealing with a significant claim and it feels like your insurance company is playing games with you, consider consulting with an expert. Anyone looking for a Minneapolis injury lawyer should know how bad faith affects your potential recovery. This includes your pain and suffering damages. Pain and suffering refers to the physical aches and emotional distress you suffer as a result of a crash. Bad faith insurance practices can severely diminish your compensation for pain and suffering.
Pretty frustrating, right?
The “Delay, Deny, Defend” Playbook
There’s a name for the strategy insurers use to avoid paying you.
Its name is “Delay, Deny, Defend.” It was the title of a 2010 book by law professor Jay Feinman. It refers to a three-step strategy that insurers play to protect profits. Here’s how it plays out.
Delay
This is the first move. The insurer stalls.
They will request the same documents multiple times. They will say they never received your paperwork. They will switch your case to a new adjuster and you will have to start over. The objective is easy… They are trying to wear you out. The longer they take, the more bills mount up.
Deny
If delaying doesn’t work, they just say no.
They may say your injuries predated the accident. They may say you were partially responsible. Or they may just cite some random policy exclusion that doesn’t apply. Many insurance companies don’t take denial of a claim seriously the first time. It’s just a bluff to see if you’ll push back.
Defend
If you push back, they take it to court.
Insurance companies have vast legal departments and deep pockets. They will use these assets to grind you down and hope you tire first. It works because most people cannot afford to battle a large company.
And boy has it worked. In recent decades, this mentality ballooned the U.S. insurance industry to over $1.4 trillion.
How Bad Faith Affects Your Pain and Suffering Damages
Let me explain why this hits your wallet so hard.
Medical bills and car repairs are only part of what you’re owed after an accident. You’re also owed compensation for your experience. This means your physical pain, emotional trauma, and the way your life was affected. This is referred to as pain and suffering, and it makes up a large portion of your claim.
Here’s the problem:
Pain and suffering damages are difficult to quantify. You can’t show a receipt for emotional distress. Insurers know this. Which is why it becomes their biggest target.
This is how they try to shrink your pain and suffering damages:
- Disputing your injuries: They’ll argue your pain isn’t as bad as you say.
- Blaming pre-existing conditions: They’ll claim your suffering came from something else.
- Questioning your treatment: They’ll say your care wasn’t necessary or related.
- Pointing to minor damage: If there is a little dent, you couldn’t have been seriously injured.
The tricky part is that these tactics work on people who handle claims alone.
Statistics show this dramatically. A study by the Insurance Research Council discovered that claims handled by an attorney settled for an average of 3.5 times more money than claims that did not have legal assistance. Wow.
How To Protect Yourself
Okay, so how do you fight back against all of this?
The good news is you are not powerless. There are some easy things you can do to protect yourself. And most of them are free.
Follow these steps to keep your claim strong:
- Keep records. Record all phone calls, emails and letters. Document dates, names, and conversations. You will build a paper trail.
- Receive a written denial. Always ask for a denial in writing. This way they have to put their reasons down on paper.
- Never accept the first offer. It’s almost always a low ball. Know your losses first.
- Beware of recorded statements. Adjusters can easily twist your words. You are not obligated to provide one without an attorney present.
Don’t forget these aren’t mistakes, they are plays. The more you know how the game works, the less likely they can trick you.
The Bottom Line
Bad faith insurance practices are more common than most people think.
Insurance companies are businesses designed to make money. Minimizing payouts to you is foundational to their approach. The “delay, deny, defend” playbook is meant to exhaust you into accepting a low settlement. Your pain and suffering damages are often among the first cuts.
But you have more power than you realise. To recap:
- Bad faith is when an insurer treats you unfairly after an accident
- “Delay, deny, defend” is a deliberate way to minimise your payout
- Your pain and suffering damages are a prime target for these tactics
- Documenting everything and knowing your rights protects your claim
You bought insurance, don’t let the insurance company strong arm you into taking less. Fight for what you deserve.
