Understanding “Bad Faith” Insurance Practices in Tempe Accident Claims
After a car accident in Tempe, you expect your insurance company—or the other driver's—to do the right thing. But what happens when they don’t?
That’s where bad faith insurance practices come into play. If an insurer denies your claim without a valid reason, delays payment, or lowballs your damages, they might be doing more than being difficult — they could be breaking the law. If you're dealing with an uncooperative adjuster after a wreck near North Tempe or Downtown, a Tempe car accident attorney who understands Arizona bad faith law can help you hold them accountable.
What Does “Bad Faith” Mean in Insurance?
In Arizona, insurance companies are legally required to treat claimants fairly and in good faith. That applies to both:
First-party claims (against your own insurer)
Third-party claims (against the at-fault driver’s insurer)
Bad faith happens when the insurance company fails to uphold this duty. Common examples include:
Denying a valid claim without a reasonable explanation
Delaying payment without justification
Offering far less than what the claim is worth
Ignoring medical documentation
Failing to investigate promptly or thoroughly
Twisting policy language to avoid payout
In short: if the insurer isn’t playing fair, they may be operating in bad faith — and you may be entitled to more than just your original damages.
Real-World Tempe Examples of Bad Faith
Let’s say you suffer a spinal cord injury in a rollover on the 60 near Meyer Park. The at-fault driver’s insurer offers a fraction of your medical bills and refuses to explain why. They ignore multiple treatment records and decline to speak with your doctors.
Or maybe you’re hit by a distracted driver and file with your own underinsured motorist policy. Your insurer drags out the process, demands irrelevant documents, and refuses to negotiate fairly — all while you rack up bills and miss work.
Both of these could qualify as bad faith behavior.
What Arizona Law Says About Bad Faith
Arizona law recognizes insurance bad faith as a tort — a civil wrong. This means if your insurer acts unfairly, you may be able to file a lawsuit not just for your original claim, but for additional damages, including:
Emotional distress
Financial losses due to delay
Punitive damages (in severe cases)
Unlike regular contract disputes, bad faith cases go beyond what’s “owed” under the policy. They’re about the insurer’s misconduct.
Bad Faith vs. Simple Denial: Know the Difference
Not every denial is bad faith. Sometimes insurers have legitimate reasons for denying a claim — like if liability is unclear, or policy limits have been reached. But bad faith goes further. It's about how they handle the claim, not just the outcome.
Signs of bad faith include:
Repeated requests for the same documents
“Ghosting” or failing to return calls
Misstating the policy’s language
Pressuring you to settle quickly without full review
Denying your injury despite supporting medical records
If you were hurt in a rideshare crash or parking lot accident and feel like the insurer is playing games, you may be dealing with bad faith.
How to Respond to Bad Faith Tactics
Document everything. Keep a record of calls, letters, emails, and claim updates.
Request explanations in writing. If a claim is denied, demand a written reason.
Review your policy. Insurers count on you not knowing your rights.
Consult an attorney. A lawyer can assess whether bad faith exists — and take action if needed.
Your attorney can also bring in experts to evaluate whether the insurer’s delay or denial meets Arizona’s legal threshold for bad faith.
How Bad Faith Affects Your Tempe Injury Settlement
Bad faith can impact all types of personal injury claims — including those involving:
And it doesn’t only delay compensation — it can increase it. Courts have awarded victims in bad faith lawsuits well beyond the original claim amount. In one case, a plaintiff received 10 times more than their original claim due to the insurer’s misconduct.
Final Thought
If you’re dealing with an insurance company that’s dragging its feet, giving you the runaround, or denying what should be a valid claim — don’t assume it’s normal.
Bad faith isn’t just unfair. It’s unlawful. And in Arizona, you have legal tools to fight back.
