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Guide to Suing Your Insurance Company for Bad Faith in South Carolina

If you have a valid claim for first-party benefits with your insurance after an accident, and it’s denied for no reason, undervalued, or overcomplicated, you may pursue a bad faith lawsuit. These lawsuits are complex and generally require an experienced lawyer to help plaintiffs navigate them.

You can sue your insurance company for many acts of bad faith, including misrepresenting a policy, failing to communicate, unreasonably delaying the claim, unjustifiably denying the claim, and several more reasons our lawyers can explain if applicable. South Carolina gives plaintiffs three years to sue insurance companies for bad faith, which can yield the damages they’ve been looking for.

Get a free and confidential case evaluation from our Columbia, SC car accident lawyers by calling Burriss Ridgeway Injury Lawyers at (803) 451-4000 now.

When Can You Sue for Bad Faith in South Carolina?

South Carolina lists “improper claims practices” under S.C. Code Ann. § 38-59-20, identifying the acts of bad faith that policyholders may use to sue their insurers when first-party benefits are wrongly withheld or underpaid after an accident.

Misrepresentation

Knowingly misrepresenting policy terms to the policyholder is an improper claims practice and includes giving misleading information about coverage limits and what would be a fair offer.

Failure to Communicate

Failing to communicate, acknowledge, or respond to policyholders within a reasonable period is also an act of bad faith in South Carolina. Tell our lawyers if your insurance company seems to be intentionally ignoring you, preventing you from getting damages, and we can help you address it head-on.

Unreasonable Delays

Insurance companies must promptly investigate and process claims for first-party benefits, such as MedPay, after accidents, and failure to do so within a reasonable period is an improper claims practice that makes the insurer vulnerable to lawsuits. You shouldn’t have to wait months on end to hear back from your insurer about a claim.

Unjustified Denial

Not trying to provide a fair and fast settlement in good faith when damages are clearly covered by the policy, resulting in a completely unjustified denial, is a common example of bad faith.

Compelling Litigation

Insurance companies that intentionally offer less to back policyholders into a corner and force them to accept low offers or go to trial to get what’s fair are also acting in bad faith.

Lowball Offers

Offering less than what’s payable under a policy is an improper claims practice, so don’t take your insurer at its word if the initial settlement offer you receive is far lower than you hoped it would be.

Threatening Policy Cancellation

Threatening to cancel a policy to discourage policyholders from seeking compensation may also lead to a bad faith lawsuit against an insurance company.

Unreasonable Failure to Pay

Any other conduct not expressly mentioned that leads to an “unreasonable failure to pay” may be considered an act of bad faith by your insurance company and worthy of a lawsuit.

What Steps Must You Take to Sue Your Insurance Company for Bad Faith in South Carolina?

To sue your insurance for bad faith after denying or underpaying your claim for first-party benefits after a collision, you must document everything and know your policy.

Document Everything

We can help you document everything if you need to sue your insurance company for bad faith, primarily focusing on any communications between you and your insurer. Copies of letters, emails, written denials, and information about any settlement conversations can reveal the insurer’s bad-faith tactics.

Know Your Policy

You also need to know your policy in and out to determine whether your insurance company is misrepresenting it to you. We can read all policy documents to know the exact coverage limits and covered damages, so we can easily spot lowball offers and reject them.

FAQs About Suing Your Insurance Company for Bad Faith

How Do You Know if Your Insurance Company Acted in Bad Faith?

You may need help recognizing whether or not your insurance acted in bad faith when processing or paying out your recent claim in South Carolina, and our attorneys can determine if that is the case after learning more about your situation.

How Long Do You Have to Sue Your Insurance Company for Bad Faith?

The South Carolina statute of limitations for bad faith lawsuits against insurance companies is three years from the date of the act, which our lawyers can help you pinpoint.

What Damages Can You Get by Suing Your Insurance Company for Bad Faith?

You can recover the original policy amount in a bad faith insurance claim, as well as attorney’s fees. You may also get punitive damages for the insurance company’s conduct in South Carolina.

What Evidence Do You Need to Sue Your Insurance Company for Bad Faith?

To sue your insurance company for bad faith, our car accident lawyers may use the following evidence:

  • Policy documents
  • Emails
  • Letters
  • Phone records
  • Written denials
  • Claim documentation
  • Settlement offers
  • Witness statements

Do You Need an Attorney to Sue Your Insurance Company for Bad Faith?

Going up against your insurance company is challenging, and having an experienced lawyer help you sue for bad faith, prove it, and recover the damages you deserve is hugely beneficial.

Is Suing Your Insurance Company for Bad Faith Worth It?

Suing your insurance company for bad faith is often worth it, as you may get the full amount payable under the policy in the lawsuit, more than the insurance company was offering you before.

What Are Common Examples of Bad Faith Acts by Insurance Companies?

The following are some of the examples of bad faith acts by insurance companies in South Carolina:

  • Denying valid claims
  • Delaying investigations
  • Misrepresenting an insurance policy
  • Offering lowball payouts
  • Poor communication

Reach Out to Our Lawyers for Help with Your Bad Faith Insurance Lawsuit

Call the South Carolina car accident lawyers of Burriss Ridgeway Injury Lawyers at (803) 451-4000 for a free case analysis.

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