Do I have a case for a bad faith claim?
Question Details: My insurance company paid out 2 separate claims finding me at fault without ever contacting me. The only way I found out that these claims even existed or were paid, is because they are using these claims as part of a decision to not renew my insurance. One of these claims paid out over $7,000 and finding me at fault, this will affect my future nsurance prices. By not informing me that a claim was filed, I was therefore unable to to defend myself, unable to counter the claims made, unable to contest the amount to be paid, unable to bring in or request a third party to evaluate the damage, and unable to provide witnesses that could have resulted in a lower pay out or dismissal of the claim. If there is a way to contest these claims against me internally and have them removed from my record, I'm am unaware.
In theory, you have a case, for the reasons you describe in your question. But there are serious challenges in bringing it. As the language from the case you cite indicate, you can only recover the "resulting damages"--which means the damages you can prove. That means you'd have to prove by a "preponderance of the evidence"--i.e. convince a court that it is more likely than not--that had they notified you so that you could have gotten involved, you could have won those cases entirely or had less damages assessed--which will not be easy to do. And even if you can do that, since they paid for you and you did not pay, you'd have to also prove to the court's satisfaction the "resulting losses" you suffered--i.e. the increase in premiums, which means proving how much more your premiums increased vs. what they would have increased had you had the chance to get involved. It is very difficult to see how you can do these things to any certainty.