How Parker Law Firm Injury Lawyers Helps With Bad Faith Insurance Claims
A bad faith insurance attorney makes the insurer explain, in writing and under Texas law, why it hasn’t paid what your policy promises. After a car accident or slip and fall, you expect your insurer to treat you fairly. Some don’t. They delay, ask for the same records again, or make a low offer hoping you’ll give up.
When you hire us, we:
- Review your policy and every page of correspondence with the insurer
- Investigate the accident and document your losses
- Compare the insurer’s conduct with the Texas Insurance Code and state rules
- Take over all communication with the adjuster
- Negotiate for the benefits you are owed
- File suit if the insurer still refuses to pay fairly
We work on a contingency fee, so you don’t owe attorney’s fees unless we recover compensation for you.
What Is Bad Faith Insurance?
Bad faith insurance is the use of unfair or illegal practices to deny, delay, or underpay a valid claim. Every insurer owes its policyholders a duty of good faith and fair dealing, and Texas backs that duty with statutes that carry real penalties.
Bad faith claims most often arise under your own coverage after an injury, including:
- Personal injury protection (PIP), which pays medical expenses and up to 80% of lost income regardless of fault
- Uninsured and underinsured motorist coverage
- Medical payments coverage
- Health, disability, and life insurance
If the problem is the at-fault driver’s insurer, the path is usually a claim or lawsuit against that driver. We can tell you which applies.
Common Examples of Insurance Bad Faith
Insurance bad faith usually shows up as a pattern of stalling, shifting reasons, or unreasonably low offers. Common examples include:
- Failing to acknowledge a claim
- Denying a claim without a proper investigation
- Delaying a decision or payment without a reason
- Misrepresenting policy terms or facts
- Ignoring calls, emails, and letters
- Denying a claim with no explanation
- Undervaluing a claim on purpose
- Refusing to settle when liability is clear
If something doesn’t feel right about how your claim is being handled, have a lawyer look at it.
Warning Signs Your Insurer May Be Acting in Bad Faith
Watch for conduct that seems designed to wear you down rather than evaluate your claim:
- No communication. The adjuster doesn’t acknowledge your claim, return calls, or send what you asked for.
- Endless requests. The insurer asks for the same records again, or for information that has nothing to do with the claim.
- Unexplained denials. A blanket denial, or one that cites language not in your policy or facts that are wrong.
- Lowball offers. An offer that doesn’t even cover your medical bills.
- Payment delays. The insurer agreed to pay but keeps putting it off.
- Threats. Warnings that your premiums will rise or your policy will be canceled if you push the claim.
Keep a log of every call, and save every letter and email. That record is often the strongest evidence in a bad faith case.
What Texas Law Says About Bad Faith Insurance Practices
Texas Insurance Code chapter 541 makes certain unfair settlement practices illegal. They include:
- Misrepresenting a material fact or policy provision about coverage
- Failing to attempt in good faith a prompt, fair, and equitable settlement once liability is reasonably clear
- Failing to promptly explain the policy basis for a denial or a settlement offer
- Failing to affirm or deny coverage, or send a reservation of rights, within a reasonable time
- Refusing to pay a claim without a reasonable investigation
Chapter 542, the Texas prompt payment law, sets deadlines for an insurer to acknowledge a claim, request information, accept or reject it, and pay. An insurer that misses those deadlines can owe interest and attorney’s fees on top of the claim.
What Compensation Can You Recover in a Bad Faith Insurance Claim?
You may be able to recover the benefits the insurer should have paid, plus amounts Texas law adds for unfair handling. Depending on the facts and the statute, that can include:
- The policy benefits you were owed
- Statutory interest and penalties for late payment
- Reasonable attorney’s fees
- Additional damages when the insurer acted knowingly
- In some cases, damages for mental anguish
What you can recover depends on your policy and the insurer’s conduct. We review both before we tell you what your claim is worth.
When Should You Call a Bad Faith Insurance Lawyer?
Call when an insurer denies a claim you believe is covered, stalls without explanation, or presses you to accept an offer that doesn’t cover your losses. Do it before you sign a release or accept a final payment.
Deadlines apply to insurance claims and lawsuits, and some policies have their own notice rules. Read our guide on whether to accept the first settlement offer, then bring your policy and letters to a free consultation. We serve clients across Fort Worth, Arlington, and the rest of Tarrant County.
About Brad Parker
Bad Faith Insurance Lawyer Fort Worth, TX FAQs
What is bad faith insurance in Texas?
Bad faith is when an insurance company uses unfair or illegal practices to deny, delay, or underpay a valid claim. Texas Insurance Code chapter 541 lists unfair settlement practices, such as refusing to pay without a reasonable investigation or failing to settle once liability is reasonably clear. Chapter 542 sets deadlines for handling and paying claims.
Can I sue the other driver's insurance company for bad faith?
Usually not directly. In Texas, bad faith claims generally belong to the insurer's own policyholders and beneficiaries. If the other driver's insurer is treating you unfairly, your claim is usually against the at-fault driver, and a lawsuit can be the way to make that insurer respond. Your own insurer, including your PIP and uninsured motorist carrier, does owe you these duties.
What are signs my insurance company is acting in bad faith?
Warning signs include ignoring your calls, asking for the same documents repeatedly, denying a claim without a clear explanation, citing policy language that isn't in your policy, offering less than your medical bills, delaying payment it already agreed to make, and threatening to cancel your policy. One sign alone may not be bad faith, but a pattern deserves review.
What can I recover in a bad faith insurance claim?
Depending on the facts, you may recover the policy benefits that should have been paid, interest and statutory penalties for late payment, reasonable attorney's fees, and in some cases additional damages when the insurer acted knowingly. What is available depends on the policy, the type of claim, and which statute applies.
How long do I have to bring a bad faith claim in Texas?
Deadlines vary with the type of claim and the policy. Many claims under the Texas Insurance Code must be filed within two years of the unfair practice or of when you discovered it, and some policies add their own notice requirements. Don't wait. Talk to a lawyer as soon as an insurer denies or stalls your claim.
How much does a bad faith insurance lawyer cost?
We handle these cases on a contingency fee. You pay nothing upfront and don't owe attorney's fees unless we recover compensation for you. Our fee will never exceed your recovery, and we explain the exact terms in writing before we begin.
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Parker Law Firm Injury Lawyers – Fort Worth Office
209 N Hampton St, Fort Worth, TX 76102
- Monday – Friday 8:00 am – 5:00 pm
- Saturday – Sunday Closed