Understand Your Rights. Solve Your Legal Problems
When a car accident happens, the aftermath is often overwhelming—medical bills pile up, income may be lost, and emotional stress can run high. In such moments, Florida residents rely on their insurance policies to provide timely support and financial relief. But for many, the real battle begins not with recovery but with the insurer. In personal injury cases, particularly auto accidents, some insurers employ tactics that delay, devalue, or deny valid claims. Fortunately, Florida law provides strong protections to shield injured policyholders from these bad-faith practices.
In personal injury, bad faith refers to an insurer's failure to handle a claim honestly and fairly, especially when liability is clear. Florida law requires insurers to settle claims promptly and in good faith when, under the circumstances, it could and should do so.
Common bad-faith tactics in auto accident cases include:
These practices can leave injured Floridians in financial and legal limbo, unable to cover medical costs, vehicle repairs, or lost wages when they need help most.
Florida law includes key statutes aimed at preventing insurance companies from acting unfairly, especially when policyholders are dealing with the aftermath of a personal injury, such as a car accident.
Florida Statute § 624.155 allows policyholders to take legal action when an insurance company acts in bad faith. This statute is a cornerstone of consumer protection in the state's insurance landscape.
Under this law, a policyholder can seek damages when an insurer:
To pursue a claim under § 624.155, the injured party—or their attorney—must file a Civil Remedy Notice with the Florida Department of Financial Services. This notice gives the insurer a 60-day period to fix the issue, including paying the claim or addressing the bad faith conduct.
If the insurer fails to act within those 60 days, the policyholder can pursue a bad faith lawsuit, potentially recovering damages that exceed the original policy limits. This is particularly critical in severe injury cases, where medical expenses and lost wages quickly surpass basic coverage thresholds.
In addition to the bad faith statute, Florida Statute § 627.428 provides another critical layer of protection: the right to recover attorney's fees if a policyholder has to sue their insurer and wins.
For personal injury claimants, this statute often makes the difference between being able to pursue justice and walking away under pressure. Legal costs can be overwhelming, especially when the injured party is already struggling with medical bills, rehabilitation, and lost income.
Under § 627.428, if the court favors the policyholder—even if the insurer ultimately pays the claim before trial—the insurer may still be required to pay reasonable attorney's fees. This discourages companies from unreasonably denying or delaying valid claims, as they risk covering payout and legal costs.
These two statutes ensure that insurance companies treat Florida policyholders fairly and in good faith. They create strong incentives for insurers to respond promptly, evaluate claims thoroughly, and avoid improper denials. For injured individuals facing high financial stakes, these legal protections are a vital backstop against bad faith tactics.
In Florida, insurers must promptly evaluate and settle personal injury claims, especially when the policyholder's liability is clear. For instance, if you sustain serious injuries in a car accident caused by another driver, and the insurer has evidence of the injury and fault, it is expected to make a timely and reasonable settlement offer.
Suppose it fails to do so, and the injured party ends up going to trial and securing a judgment above the policy limit. In that case, the insurer can be held liable for the full amount—not just the original policy maximum. This is meant to prevent companies from gambling with their client's financial futures by unnecessarily risking a trial.
If you suspect your insurer is engaging in bad-faith practices after a car accident:
Florida law doesn't just promise protection—it provides real tools for car accident victims facing insurance company resistance. Statutes governing bad faith claims and attorney's fees create a framework where insurers must act quickly, fairly, and in the best interest of their policyholders.
Understanding these rights is essential for those recovering from a crash. When insurers fail to meet their obligations, the law is on the side of the injured—ready to hold those companies accountable and ensure that justice, not delay, prevails.
