How to Identify and Fight Bad Faith Car Insurance Practices

After a wreck, you count on insurance to do the right thing. Then the calls start dragging out, the offers come in low, and you feel like you’re being pushed around at the worst possible time. That isn’t just frustrating; it can be bad faith. 

At the Law Office of Shane R. Kadlec in Houston, we have stood up for injured Texans since 1996, and we offer free consultations to help you spot the signs and push back with confidence.

What “bad faith” means in car insurance claims

Insurance is a contract. Your insurer must treat you fairly, look at the facts, and pay covered losses without unnecessary delays. Bad faith occurs when a company ignores facts, misstates policy terms, or employs stall tactics to avoid paying a legitimate claim.

This can happen on your policy, like UM/UIM, MedPay, or collision coverage, or on the at-fault driver’s liability policy. It results in quick denials with no reason, lowball offers, or silence when you ask for updates.

Texas law gives added tools, too. Chapters 541 and 542 of the Texas Insurance Code ban unfair claim practices and require prompt payment once coverage is clear, and violations can lead to extra damages and fees.

First-party vs. third-party, in plain English

First-party means you are making a claim under your policy. Examples include UM/UIM, MedPay, PIP, or comprehensive. Third-party means the at-fault driver’s insurer owes you for injuries and losses their driver caused.

In Texas, a separate rule known as a Stowers demand can pressure an insurer to settle within policy limits when liability is clear, and damages exceed limits. If they refuse unreasonably and a verdict goes higher, that decision can come back to bite them.

Knowing which lane your claim sits in helps you choose the right playbook. The signs of bad faith look similar, but the leverage points differ a bit between first and third parties.

Red flags that suggest bad faith

If you catch a few of these, it is time to slow down and get help before signing anything.

• Denying your claim with no apparent reason in writing.
• Endless requests for the same documents or materials that do not matter.
• Unexplained delays in assigning an adjuster, inspecting your car, or approving care.
• Settlement offers that do not even cover medical bills or lost pay.
• Misstating policy language or the law to scare you off the claim.
• Threats about “fraud” or blaming you without evidence.

One or two hiccups can happen in any claim. A pattern of stonewalling is different, and it usually means you need to change the conversation.

Signal	What it looks like	What you can do
No reason for denial	Phone denial with no letter, or a vague “not covered.”	Request a detailed written explanation with policy sections cited. Set a response date in writing.
Endless document loops	They keep asking for the same records.	Send a single, organized package. Include an index. Confirm receipt by email and certified mail.
Lowball offer	The offer covers only a portion of the bills and overlooks future care.	Provide medical summaries and a damages spreadsheet. Counter in writing with backup.
Misstating the policy	“Your UM does not apply to this,” when it clearly does.	Attach the policy page that shows coverage. Ask them to correct the record in writing.
Slow pay after approval	They admit coverage, then no check shows up for weeks.	Reference Texas prompt payment rules. Request interest and fees if delays continue.
Threats or pressure	“Settle today or the offer drops.”	Respond calmly in writing. Decline recorded statements until you have counsel.

A clear paper trail is more helpful than anything else. It provides evidence of delays and mixed messages, which is crucial if the dispute escalates.

How to push back the right way

You do not need to fight unfair tactics with guesswork. Try this simple plan.

1. Get everything in writing. Ask for denial reasons, policy citations, and itemized calculations.
2. Create a claim file. Keep a log of calls, dates, names, and what was said. Save emails and letters.
3. Build your damage story. Summarize medical treatment, time off work, and out-of-pocket costs.
4. Set reasonable timelines. Give 10 to 14 days for responses, then follow up in writing.
5. File a complaint with the Texas Department of Insurance if needed. It can spur movement.
6. Talk with a car crash lawyer. A short call can quickly change the game and costs nothing upfront.

Once the insurer knows you are organized and informed, offers tend to move closer to reality. If they do not, litigation becomes a real option.

Documents worth saving

Your file does not have to be fancy. It just has to be clear.

• Policy, declarations page, and any endorsements.
• Police report, scene photos, and witness names.
• Medical records, bills, and a running expense list with receipts.
• Pay stubs and employer letters showing missed work and reduced hours.
• All adjuster emails and letters, including any recorded statement requests.

If something seems small, keep it anyway. That $50 parking receipt for a follow-up visit still shows real loss.

Common adjuster plays, and how to respond

You might hear lines that sound harmless, yet they are meant to shrink your claim.

• “We need your full medical history.” Reply: “I will provide records related to this crash.”
• “Give a recorded statement today.” Reply: “Send your questions in writing, please.”
• “Our offer is based on usual charges.” Reply: “Here are my actual bills and medical notes.”
• “Pain and suffering are not part of this.” Reply: “Texas allows recovery for non-economic loss, and my notes are attached.”
• “You were partly at fault.” Reply: “Please share the evidence you rely on in writing.”

Stay polite. Stay firm. And keep the talk on email as much as possible.

Mistakes that hurt your claim

Minor missteps can hand the insurer ammo they did not have before.

• Posting crash details or photos on social media.
• Missing follow-up medical care, then trying to explain the gap later.
• Signing broad medical releases that scoop up unrelated records.
• Accepting a check before you know the full medical picture.
• Guessing on a recorded statement, then getting pinned to it months later.

If you are unsure about a form or a phone call, pause and ask questions first. A short pause now often saves weeks of cleanup later.

How our Houston team helps you fight back

Since 1996, our firm has helped crash victims across Houston deal with denied and delayed claims. We dig into the policy, collect the proof, and press the insurer with clear deadlines under Texas law. If a fair deal is not offered, we are ready to file and try the case.

You will never be left wondering where your case stands. We coordinate your care, track bills and liens, and stay focused on your long-term recovery, not just a quick fix. Free consultations allow you to discuss your case with us early, and contingency fees mean you pay nothing unless we recover for you.

Bad faith thrives in silence. Once you have a team and a plan, the game changes fast.

If an insurer is dragging its feet or pushing a tiny offer, let’s talk about it. Call 281-643-2000 for a free case review, or reach us through our contact page. We welcome your questions, and we will tell you straight what helps, what hurts, and what to do next. You don’t have to face an insurance company alone, not here in Houston.