What Can I Do If My Own Insurance Company Is Acting in Bad Faith?

When your insurance company fails to honor its obligations, you have the right to hold them accountable under Arizona law. Bad faith occurs when an insurer unreasonably denies or delays payment of a valid claim, leaving policyholders without the support they paid for.

Recent Case in Phoenix

In October 2023, the Ninth Circuit Court affirmed a $5.7 million verdict against Farmers Insurance for acting in bad faith. The insurer had delayed and underpaid a policyholder’s legitimate claim, leading to significant financial and emotional distress for the insured. This case underscores the courts’ willingness to penalize insurers who fail to meet their obligations. Read more about this case.

Arizona Law and Your Rights

Arizona law mandates that insurance companies act in good faith and deal fairly with policyholders. When they don’t, you can file a lawsuit for bad faith. Successful claims can result in compensation for the original claim amount, emotional distress, and even punitive damages designed to punish the insurer and deter similar conduct.

Statute of Limitations

It’s crucial to act promptly. In Arizona, the statute of limitations for filing a bad faith insurance claim is typically two years from the date of the insurer’s wrongful act. Delaying action can jeopardize your ability to recover damages.

What To Do Next

If you believe your insurer is acting in bad faith, document all communications and seek legal counsel immediately. Experienced attorneys can assess your case, negotiate with the insurer, and, if necessary, litigate to protect your rights.

At Hirsch Talcott, our team, including attorney Jack Hirsch, a Certified Specialist in Personal Injury and Wrongful Death, and attorney Chelsie Talcott, a former Maricopa County Deputy Public Defender, has a proven track record in holding insurers accountable. We operate on a contingency fee basis—no fees unless we win. Learn why injured Arizonans choose us.

Don’t let your insurer’s bad faith actions go unchallenged. Contact Hirsch Talcott at 602-903-6000 for a free consultation and let us help you secure the compensation you deserve.