Commercials for insurance companies make you feel all warm and fuzzy, don’t they? If you believe these ads, some insurance companies are like your neighbor (but only the good ones), some are on your side, and others help old ladies cross the street. What’s your policy?
Despite what these ads would have us believe, insurance companies sometimes actually act in downright un-neighborly ways. Whether it be car insurance claim, a home owners claim, or any other kind of claim, insurance companies exist for one reason and one reason only – to make money. (If they do anything other than try to maximize profit, they will be sued.) To expect them to “do the right thing” is, unfortunately, not reality.
Your own insurance company has an obligation to treat you fairly, even if it means, believe it or not, they have to pay. If your own insurance company wrongly denies your claim, or drags out the claims process, they may be practicing bad faith insurance, sometimes called “first party” bad faith. One insurance company defense law firm was even nice enough to post some examples of what can be considered bad faith insurance.
What does this mean to you:
Insurance companies spend a lot of money on ad campaigns, mottos, and spokespeople to convince people they treat you fairly. We all know, that doesn’t always happen. Keep in mind that if your own insurance company gives you the run around, they may be liable.