When you’re injured in an accident, the last thing you should have to worry about is fighting your own insurance company. Yet many injury victims in Texas find themselves doing exactly that, facing claim denials, delayed payments, and settlement offers that barely cover their medical bills. Insurance companies are businesses, and their goal is to minimize what they pay out on every claim. When that drive to cut costs crosses a legal line, it becomes bad faith insurance, and you have the right to hold them accountable.
At Byrd Davis Alden & Henrichson, LLP, we represent injury victims whose insurers have acted dishonestly, unreasonably, or in outright violation of Texas law. Our attorneys have been fighting for Austin-area clients since 1959, and with a 98% success rate and more than $100 million recovered, we know how to build the kind of case that forces insurance companies to pay what they owe. One important thing to understand from the start: our firm handles bad faith insurance claims that arise in connection with personal injury cases. If your claim involves serious physical harm, we are here to help.
What Is Bad Faith Insurance in Texas?
Texas law imposes a duty on insurance companies to handle claims fairly, honestly, and in a timely manner. Under Texas Insurance Code Chapter 541, insurers are prohibited from engaging in unfair or deceptive practices, including misrepresenting policy terms, failing to investigate claims properly, and refusing to settle claims when liability is reasonably clear.
What Actions Constitute Bad Faith?
Bad faith can take many forms, and it is not always obvious when it is happening. Common examples include unreasonable delays in acknowledging or paying a claim, denying a valid claim without a reasonable explanation, offering settlements far below the actual value of your losses, and failing to conduct a thorough investigation before making a coverage decision. These tactics are used across all types of injury claims, from car accident cases to more serious incidents involving permanent or life-altering harm.
How Does Texas Law Protect Policyholders?
Texas law gives injured policyholders real remedies when an insurer acts in bad faith. In addition to recovering your actual damages, you may be entitled to additional penalties and, in cases involving knowing violations, up to three times the amount of your actual damages. The law also allows courts to award attorney’s fees, which means you can pursue a bad faith claim without bearing the full financial burden of litigation out of pocket. These protections exist precisely because insurance companies have far more resources than the individuals who pay their premiums.
When Does a Personal Injury Case Involve Bad Faith?
Not every disputed claim rises to the level of bad faith. Insurers are allowed to investigate claims, request documentation, and make coverage decisions, even ones that turn out to be wrong. Bad faith occurs when an insurer acts unreasonably or dishonestly, not simply when it makes a decision you disagree with.
Recognizing Bad Faith in a Personal Injury Claim
In a personal injury context, bad faith most often appears after a serious accident when the stakes are highest. Victims of catastrophic injuries frequently face aggressive resistance from insurance companies because the amounts involved are significant. If your insurer is ignoring your calls, offering a settlement before a proper investigation is complete, misrepresenting what your policy covers, or pressuring you to accept far less than your claim is worth, those are warning signs that should not be ignored.
What Evidence Supports a Bad Faith Claim?
Supporting a bad faith claim requires documentation. Keep records of every communication with your insurance company, including dates, the names of representatives you spoke with, and what was said or promised. Hold onto all written correspondence, claim denial letters, and any offers made during settlement negotiations. An attorney can use this paper trail to demonstrate a pattern of unreasonable conduct and build a compelling case on your behalf.
What Can You Recover in a Bad Faith Insurance Claim?
When an insurer acts in bad faith in connection with a personal injury claim, the damages available to you go beyond what you would recover in a standard injury case. You may be entitled to the full value of your underlying injury claim, which includes medical expenses, lost income, and pain and suffering, as well as additional statutory damages under Texas law. In cases where the insurer acted knowingly, courts can award enhanced penalties that are meant to punish the insurer and deter future misconduct.
It is also worth noting that pursuing a bad faith claim does not require you to abandon your underlying injury case. Our attorneys handle bad faith insurance claims in Texas alongside the full scope of your personal injury matter, so every aspect of your case is coordinated and protected from the start.
Contact Byrd Davis Alden & Henrichson, LLP for Help With Bad Faith Insurance
When an insurance company refuses to play by the rules, the consequences for injured victims can be devastating. Delays and denials stretch out the financial pressure on families who are already dealing with medical bills, lost wages, and a long road to recovery. The attorneys at Byrd Davis Alden & Henrichson, LLP have spent more than six decades fighting for Austin injury victims, and our trial-focused approach means we are not afraid to take insurers to court when that is what it takes to get results. Kevin Henrichson, Robert Alden, Hunter Wallen, and Carson May bring deep experience and a commitment to holding wrongdoers accountable.
If you believe your insurance company has acted in bad faith in connection with a personal injury claim, do not wait to get legal advice. Time limits apply to these claims under Texas law, and the earlier you act, the better your chances of preserving critical evidence. Contact our office today to schedule a consultation with an Austin bad faith insurance lawyer and learn what your claim may be worth.