How Insurance Bad Faith Can Affect a Car Accident Claim in Virginia

After a serious car accident in Hampton Roads, most injured people expect that insurance companies will act in good faith — reviewing the claim honestly, evaluating the evidence fairly, and paying what the policy actually requires. In practice, that expectation is not always met. When an insurance company delays, denies, or undervalues a claim, questions may arise about whether the insurer is handling the claim appropriately under Virginia law.

What Insurance Bad Faith Means in Virginia

Insurance disputes can arise for many reasons, including disagreements over coverage, liability, the value of a claim, or the extent of a person’s injuries. In some circumstances, an insurer’s handling of a claim may raise questions about whether it has complied with its obligations under Virginia law. The specific policy language, the insurer’s conduct, and the circumstances of the claim are all important when evaluating these issues.

Virginia law addresses unfair claim settlement practices under Virginia Code § 38.2-510. The statute identifies prohibited practices involving matters such as misrepresenting relevant facts or policy provisions, failing to act reasonably promptly on claim communications, and refusing to pay claims without conducting a reasonable investigation based on the available information.

The At-Fault Driver’s Insurer

The most common context in which bad faith issues arise in auto accident cases involves the at-fault driver’s insurance company. That insurer’s obligation runs to its own policyholder — not to the injured victim — which means the insurer has a financial incentive to minimize what it pays out. Common tactics include making early, low settlement offers before the injured person’s medical treatment is complete, disputing liability even when the police report and evidence clearly point to their insured, and invoking Virginia’s contributory negligence rule to argue that the injured person bore partial fault even without supporting evidence.

A dispute with the at-fault driver’s insurance company does not necessarily create a separate bad faith claim for the injured person. However, an injured person may still pursue an auto accident claim against the responsible party and seek compensation based on the facts of the collision and the resulting injuries.

When a crash results in a fatality, surviving family members may also have legal options through a wrongful death claim under Virginia law.

Your Own Insurer’s Obligations

Claims involving a person’s own insurance company can raise different legal issues, particularly when uninsured or underinsured motorist coverage is involved. Depending on the circumstances, Virginia law may provide remedies when an insurer fails to handle a claim in accordance with its legal obligations. The available options depend on the policy, the type of coverage involved, and the insurer’s conduct.

What to Do When an Insurer Acts Unreasonably

Documenting every communication with an insurance company — keeping records of calls, emails, letters, and offers — is important whenever a claim involves dispute or delay. Obtaining a written explanation for any denial, and reviewing it against the actual policy language, can help identify whether the insurer’s position has a legitimate basis.

Consulting with an experienced personal injury attorney when a claim is being delayed, denied, or disputed can help an injured person understand the insurer’s position and the options available under Virginia law.

If you believe your claim is being treated unfairly by an insurance company after a crash in Virginia Beach, Norfolk, Chesapeake, Hampton, Suffolk, Portsmouth, Newport News, or anywhere in Hampton Roads, Breit Law can help. With more than 47 years of trial experience, William Breit has represented injured individuals and families throughout Hampton Roads. Contact us today.

Map of the Hampton Roads region in Virginia, where Breit Law represents individuals injured in car accidents.