How To Sue an Insurance Company for Bad Faith Near Las Cruces, NM

Insurance companies are supposed to provide coverage for their policyholders when they suffer a loss. However, sometimes insurance companies act in bad faith and deny or delay claims, or they offer low settlements that do not fully compensate the policyholder for their losses. If you have been the victim of insurance bad faith, you may be able to sue the insurance company for damages.

Let’s take a closer look at what is insurance bad faith and how to sue an insurance company for bad faith near Las Cruces, New Mexico.

What is Insurance Bad Faith? What Does it Look Like in New Mexico? 

Insurance bad faith is a legal term that refers to an insurance company’s failure to act in good faith with its policyholder. This can include denying or delaying a claim, offering a low settlement, or failing to investigate a claim properly. In order to prove insurance bad faith, you must show that the insurance company:

  • Knew or should have known that its actions were unreasonable;
  • acted with a reckless disregard for the policyholder’s rights; and
  • caused the policyholder to suffer damages.

How to Sue an Insurance Company for Bad Faith near Las Cruces, NM

If you believe that your insurance company has acted in bad faith, you can file a lawsuit against the company in court. There are two main types of lawsuits that can be filed for insurance bad faith: breach of contract and tort.

  • Breach of contract: A breach of contract lawsuit is based on the terms of your insurance policy. You must show that the insurance company failed to fulfill its obligations under the policy, such as by denying or delaying a claim.
  • Tort: A tort lawsuit is based on the insurance company’s negligence or intentional tortious conduct. You must show that the insurance company acted unreasonably or with a reckless disregard for your rights.

Steps to Sue an Insurance Company for Bad Faith, Breach of Contract near Las Cruces, NM

If you are considering filing a lawsuit against an insurance company for bad faith, it is important to speak with an insurance bad faith lawyer. An attorney can help you understand your legal rights and options, and they can represent you in court.

Here are the steps you need to take to sue an insurance company for bad faith:

  • File a complaint with the insurance company. The first step is to file a complaint with the insurance company. This will put the company on notice of your claim and give them an opportunity to investigate the matter.
  • Negotiate a settlement. If the insurance company denies or delays your claim, you may be able to negotiate a settlement with the company. This is usually the best option, as it can save you the time and expense of going to court.
  • File a lawsuit. If you are unable to reach a settlement with the insurance company, you may need to file a lawsuit. This is a serious step, and you should only do it if you have a strong case.

Hiring an Insurance Bad Faith Attorney near Las Cruces, New Mexico

If you believe that your insurance company has acted in bad faith, you should speak with an insurance bad faith attorney as soon as possible. An attorney can help you understand your legal rights and options, and they can represent you in court if necessary. Need help finding an insurance bad faith or breach of contract lawyer near Las Cruces, New Mexico? Contact us or give us a call at (575) 523-2222 to request a free consultation today! You can also find us located at 1111 E Lohman Avenue, Las Cruces, NM 88001. We proudly serve clients from the nearby areas, including Radium Springs, Fort Selden, Vado, La Mesa, Leasburg, and many others.