When you pay for a service or product, you expect to get what you pay for.
That is especially true when it comes to insurance coverage.
You pay monthly premiums, so you have protection when you need it most.
But what happens when your insurance company engages in bad faith practices?
Progressive has been routinely recognized as one of the best insurance companies.
However, recent Progressive bad faith claims and allegations indicate otherwise.
What Is Bad Faith in Colorado?
Insurance companies in Colorado are obligated to defend and indemnify their insureds.
If you accidentally injure someone, your policy is supposed to cover the risk and protect you.
If the insurance company fails to do so, you could have a legal claim against them for breaching their contract.
Under a breach of insurance contract claim, you could potentially collect:
- The money you paid out of pocket that the insurance company should have covered,
- Court costs and attorney fees,
- Emotional distress, and
- Punitive damages.
When you take out an insurance policy and pay premiums, it’s a legal contract. You pay your premiums in exchange for the company covering listed accidents under your policy.
There’s an implied duty of good faith, which means both parties to the contract should take their obligations seriously.
Examples of Possible Bad Faith Tactics
Progressive isn’t the only insurance company that engages in questionable activities. Other companies have had allegations of bad faith claims as well.
Some of the most common actions that insurance companies use to keep from paying claims include:
- Denying a valid claim;
- Not returning phone calls promptly;
- Delaying sending the payment of a claim;
- Not defending a third-party claim;
- Terminating a policy after a car accident;
- Falsifying records or data;
- Ordering unnecessary tests and reports; or
- Ignoring medical notes and information that’s a crucial part of the claim.
Some insurance companies assume policyholders don’t have a legal advocate on their side who can alert them to bad faith practices.
If you suspect Progressive insurance bad faith, it’s crucial to contact a Colorado personal injury lawyer who can help.
Legal representation can result in a higher settlement than you would receive if you handled your claim independently.
Progressive Insurance Bad Faith Claims
Progressive Insurance has previously made news for its bad faith and questionable actions.
One of these included hiring private investigators to pose as churchgoers to get information on other members who were suing for injuries sustained in a car accident.
The spying went beyond attending church functions; the investigators lied their way into a private support group.
Topics of discussion included drug addiction, abortion, and sexual orientation. After the news broke, Progressive’s CEO issued an apology for the spying incident.
In another example of Progressive bad faith claims, a lawsuit was filed over claims that Progressive used inaccurate valuation reports as a way to underpay their policyholders with totaled vehicles.
In Connecticut, body shops sued Progressive over allegations that its adjusters steer customers to specific repair shops where they pay unreasonably low labor rates after an accident.
These are only examples of the many lawsuits filed against Progressive over alleged insurance bad faith and unfair claims handling practices.
It’s important to remember that Progressive, like other insurance companies, is out to turn a profit.
While they should be looking out for you as their policyholder, their top priority is reducing the amount of money they pay out in claims.
Sadly, Progressive is not the only insurance company guilty of mishandling claims and putting profits ahead of policyholders.
Insurance companies, in general, will do whatever possible to pay out as little as possible. While some insurance tactics may seem unfair, they are legal.
Other actions rise to the level of bad faith, opening the door to potential litigation from one or more policyholders.
Contact a Colorado Personal Injury Lawyer
If you believe your insurance company acted in bad faith, please contact Tenge Law Firm immediately.
Pursuing a claim for bad faith is complicated. You need an experienced legal advocate on your side.
Having legal representation from a lawyer who understands how to build a case against the insurance company is crucial.
Don’t let Progressive or any other insurance company take advantage of you. Hold them accountable for not following the law and jeopardizing your case.