Insurance Bad Faith Tactics: Warning Signs Policyholders Should Recognize
Filing an insurance claim after a car accident, a house fire, or a serious injury is already one of the hardest moments a person can go through. When an insurer delays a decision, lowballs a settlement, or denies a valid claim outright, it can feel like a second blow—one that leaves you wondering if you'll ever get the compensation you're owed.
At Goodwin Johnston, we've watched these situations wear down policyholders and their families. Our insurance bad faith attorneys work with clients who feel brushed aside by an insurance company that's supposed to have their back, and we help them recognize when ordinary claim delays cross the line into bad faith conduct.
Located in Kansas City, Missouri, we proudly serve clients throughout Missouri, including St. Joseph, Springfield, Columbia, and St. Louis, and Kansas, including Kansas City, Lawrence, Manhattan, Wichita, and Topeka. Reach out to us if you believe your insurer isn't treating your claim fairly.
What Is Insurance Bad Faith?
Insurance companies owe their policyholders a duty of good faith and fair dealing. That means they should investigate claims promptly, communicate honestly, and pay what's owed under the policy. When an insurer instead acts unreasonably—delaying payment without justification, misreading policy terms on purpose, or denying a claim without a real basis—that conduct can amount to insurance bad faith.
Our knowledgeable attorneys closely review how an insurer handled a claim from start to finish, because the difference between a slow claims process and bad faith often comes down to the details.
Common Warning Signs of Bad Faith Tactics
Not every delay or denial means an insurer is acting in bad faith, but certain patterns tend to repeat when a company puts profits ahead of policyholders. Knowing what to watch for can help you decide when it's time to get a second opinion from insurance bad faith attorneys. Keep an eye out for:
Unexplained delays: Your claim sits for weeks or months without any real update, and requests for a timeline get vague answers.
Lowball settlement offers: The insurer offers far less than your damages, medical bills, or property loss actually add up to.
Excessive documentation requests: You're asked to submit the same paperwork repeatedly or provide records that have nothing to do with your claim.
Denial without a clear reason: Your claim gets denied, but the letter doesn't cite specific policy language or a real basis for the decision.
Inconsistent communication: Different adjusters give you conflicting information, or no one returns your calls.
These warning signs don't always appear all at once, and an insurer might rely on just one of these tactics to wear you down. If you notice even one or two of these patterns, document everything and get a professional opinion before accepting a settlement or giving up on your claim.
Tactics Insurers Use to Delay or Deny Claims
Beyond the general warning signs, insurers sometimes use more specific strategies designed to shrink or shut down claims altogether. These tactics can be harder to spot because they're often dressed up as standard procedure. Insurance bad faith attorneys are trained to recognize these strategies for what they are. Common tactics they use include:
Misrepresenting policy language: The insurer twists or misquotes your policy to justify a denial or reduced payout.
Shifting blame to the policyholder: You're told the loss resulted from your own negligence or a pre-existing condition, even when that's not accurate.
Dragging out the investigation: The insurer keeps requesting "additional review" long past a reasonable timeframe, hoping you'll settle out of frustration.
Pressuring quick settlements: You're offered a fast payout shortly after your loss, before you know the full extent of your damages or injuries.
Cherry-picking evidence: The insurer relies on selective facts or a biased medical exam while ignoring records that support your claim.
Each of these tactics is designed to save the insurer money at your expense, and none of them reflect the honest, good-faith handling you're entitled to under your policy. Recognizing these patterns is often the first step toward holding an insurer accountable for how they've treated your claim.
Steps to Take if You Suspect Bad Faith
If you're seeing these warning signs in your own claim, there are practical steps that can protect your rights and strengthen your position. Acting early, rather than waiting until frustration boils over, gives you a much better chance of a fair outcome.
Start by keeping a written record of every phone call, letter, and email exchanged with your insurer, including dates and the names of the people you spoke with. Hold onto copies of your policy, denial letters, and any settlement offers, since these documents often reveal inconsistencies an insurer would rather you didn't notice.
From there, it's worth having insurance bad faith attorneys review your file before you sign anything or accept a settlement, because once you accept an offer, it's often difficult to pursue additional compensation later. A prompt review can also help you understand whether a lawsuit for bad faith is a realistic option based on how your insurer has behaved.
Speak to Skilled Insurance Bad Faith Attorneys Today
Going through an insurance dispute on top of an accident, illness, or property loss takes a real toll, and it's easy to feel like the deck is stacked against you. Our experienced insurance bad faith attorneys at Goodwin Johnston understand how frustrating and isolating this process can feel, and we're here to help you push back against tactics designed to wear you down.
Located in Kansas City, Missouri, we're proud to stand beside clients across Missouri, including St. Joseph, Springfield, Columbia, and St. Louis, and Kansas, including Kansas City, Lawrence, Manhattan, Wichita, and Topeka. Reach out to us today to talk through what's happened with your claim and find out what options are available to you.
