Disclaimer: This article provides general information and is not legal advice. Laws and regulations vary by state. For guidance on your specific situation, consult a licensed attorney or insurance professional.

You expect your insurance company to have your back when something goes wrong. After all, that's what you pay them for, right?

But what happens when things don't go as expected — when your claim is denied, delayed, or handled unfairly? Can you actually take action against your own insurer?

The short answer is: yes. But like most insurance matters, it depends on the situation.

Here's when — and why — people end up challenging their own insurance companies, and what you should know if you're considering it.

First, What Is "Bad Faith"?

Insurance companies are legally required to act in good faith, meaning they must handle your claim fairly, honestly, and within a reasonable time.

When they don't, and it results in you being underpaid or outright denied without valid reason, that's known as bad faith — and it's one of the most common reasons policyholders sue their insurers.

Examples of bad faith might include:

• Unreasonably denying a valid claim
• Delaying payment without justification
• Offering far less than a claim is worth
• Ignoring evidence you've provided
• Failing to explain why a claim was denied

If any of this sounds familiar, you might have grounds to dispute the company's decision.

When Taking Action Might Make Sense

Challenging your own insurance company is a serious step — and usually not the first one. But here are some situations where it can happen:

1. Claim Denied Without Cause

You file a claim that seems completely legitimate — accident photos, police reports, repair estimates, the works — and it's denied with little or no explanation. If the insurer can't justify the denial, and your appeal goes nowhere, further action may be an option.

2. They're Dragging Their Feet

Some insurers delay responses or payments in hopes that you'll give up or settle for less. If they're stalling, missing deadlines, or failing to communicate for weeks (or months), escalating the issue could pressure them to act — or compensate you for the delay.

3. They Lowball Your Payout

Let's say your car is totaled, and the insurance company offers you way less than its market value — despite clear evidence to the contrary. If negotiation fails and the amount is significantly off, pursuing a formal complaint or outside review might be justified.

4. You're Being Punished for Filing

If your insurer suddenly raises your rates, cancels your policy, or retaliates after you file a legitimate claim, that could also be grounds for taking further action — especially if it violates consumer protection laws in your state.

What You Need to Do First

Before you bring in outside help, try to work through the regular claims process. Here's what to do:
✅ Document everything — emails, call logs, notes from conversations, photos, estimates.
✅ Request a written explanation of any denial or delay.
✅ Appeal the decision through the company's internal process.
✅ File a complaint with your state's insurance department — sometimes that alone gets results.

If all else fails, consult with a professional who specializes in insurance disputes. Many offer free consultations and only get paid if you win.

Keep in Mind…

Rules around taking action against your own insurer vary by state — especially when it comes to bad faith claims. Some states have strong consumer protections, while others make it harder to pursue.

Also, not every denial or disagreement is "bad faith." Sometimes claims are denied for legitimate reasons — like lapsed coverage or excluded damages. That's why documentation is everything.

The Bottom Line

Yes, you can challenge your insurance company — and sometimes, it's the only way to get what you're owed. If your claim was wrongly denied, delayed, or underpaid, and your insurer isn't playing fair, you don't have to just accept it.

Start with documentation, exhaust your options, and if needed, talk to a professional who knows how to handle insurance disputes. You've been paying for peace of mind — and you deserve to get it when it matters most.

👉 Think your claim was handled unfairly? Before taking further action, review your policy, document the problem, and talk to a professional. You may have more power — and options — than you think.

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