If you’ve ever been injured in a car accident, suffered damage from a storm, or had some other
incident in Montana, you will have to deal with your insurance company. In most cases, they
help you get the compensation you need to recover.
But sometimes, insurers act unfairly. When they deny your valid personal injury claim, delay
payment, or try to lowball you, that could be illegal. We will look at what is bad faith insurance
and how you can prove it to protect yourself.
What Does Bad Faith Mean?
Bad faith happens when an insurance company fails to handle your claim fairly and reasonably. Insurance policies are contracts. With that, insurers have a legal duty to act in good faith. If you file any type of claim, they should:
- Pay valid claims without unreasonable delays or underpayments.
- Investigate your claim immediately and thoroughly.
- Communicate honestly about coverage and claim status.
When they do not, that can affect your recovery. Fortunately, Montana law allows you to
challenge them.
When they do not, that can affect your recovery. Fortunately, Montana law allows you to challenge them.
Bad faith can take many forms, including:
- Unreasonable denial of claims: Denying your claim without a legitimate reason.
- Delaying payment: Making you wait months for reimbursement while your bills accumulate.
- Lowball settlements: Offering much less than your damages are worth.
- Misrepresenting coverage: Telling you your policy does not cover something when it actually does.
- Failure to investigate: Ignoring your documentation or failing to contact witnesses or review evidence properly.
When you have suffered a catastrophic event, the last thing you need is an insurance company making recovery harder.
How to Prove Bad Faith in Montana
Proving bad faith requires evidence that the insurer acted unreasonably or unfairly in its handling of the claim. If you find yourself in this situation, here is what you can do:
Document Everything
You want to keep a detailed log of all communication. This includes phone calls, emails, and letters. Make sure to note the dates, names, and content of each interaction. This timeline can show delays, contradictory statements, or neglect.
Understand Your Policy
Your insurance contract is your roadmap. You want to know what coverage you have, including the liability limits. Montana insurers are bound by the law to honor these terms.
Collect Supporting Evidence
For personal injury claims, make sure to collect medical records, bills, and doctor notes. You also want to include lost wage documentation and repair estimates for vehicles. Also, photos of injuries, accident scenes, and witness statements can strengthen your case.
Highlight the Insurer’s Unreasonable Behavior
In Montana, bad faith is about patterns of unfair treatment, not a single frustrating email. Some of these examples can include:
- Repeated denials without explanation
- Ignoring your calls for weeks
- Offering settlement amounts far below your documented expenses
Consult a Montana Insurance Claim Attorney
Insurance law can get very complicated, especially when bad faith is involved. An experienced Montana attorney can evaluate whether the insurer’s actions qualify as bad faith. Plus, they can analyze the evidence and represent you in negotiations or court. They can also explain what damages may be available beyond the policy limits.
What Are Montana-Specific Considerations?
Under Montana law, the courts recognize both first-party bad faith (your own insurer denying your claim) and third-party bad faith (another party’s insurer failing to settle a liability claim).
Many times, personal injury claims involve both. For example, if someone hits your car in Bozeman and their insurer refuses to pay fair damages, you may have a bad faith claim against them.
Don’t Let an Insurance Company Deny a Valid Claim
If you had to deal with bad faith insurance, one of the first questions is, “How do I prove it?” The important part is to know your rights, document everything, and seek legal help. At AFJ Law Firm PLLC, we can help.At AFJ Law Firm PLLC – Personal Injury, Car Accident, and Insurance Law, we are here to help you through the entire claims process, including proving fault in these accidents. Click here to visit our Montana Personal Injury Frequently Asked Questions page. Click here to visit our Commercial Trucking and Semi-Truck Accident practice area page. Contact us if you still have questions about your Montana accident case.