Questions & answers · Car insurance
Is my insurer acting in bad faith? What does the law say?
Car insuranceLawyer / bad faithFloridaTexasChecked Nov 5, 2026
From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-05 · Source: Florida Statutes · § 624.155(1)(b)1, (3)(a), (3)(c), (5)(a) «Civil remedy» View original ↗
In short
- Each state defines bad faith in its own law.
- In Florida, you must send a 60-day written notice before you sue.
- In Florida, being careless alone is not bad faith.
What this means
"Bad faith" is defined by each state's law. Florida's statute is one example. It lets a person bring a civil action against an insurer for, among other things, "not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so" [1].
Florida also requires notice first. Before such an action, the Florida Department of Financial Services and the insurer must be given 60 days' written notice of the violation, on the department's form [1]. No action lies if the damages are paid or the circumstances are corrected within 60 days after the insurer receives the notice [1]. The statute also says mere negligence alone is not enough to be bad faith [1].
Florida also lists unfair claim settlement practices. These count when an insurer does them so often that it shows a general business practice. Examples include denying claims without a reasonable investigation and failing to promptly give a reasonable written explanation of the basis for a denial or compromise offer [2].
In Texas, for home and renters policies, TDI says that if you are not satisfied with the outcome of your dispute, you have the right to sue the insurance company, and it points to legal-help resources and to mediation [3].
Your next step
+ deadline (Florida): the 60-day written notice above comes before a civil action [1]. Whether a lawyer is needed is your decision; this page does not judge a claim.
Where this comes from (3)
[1] Florida Statutes · § 624.155(1)(b)1, (3)(a), (3)(c), (5)(a) «Civil remedy» · checked 2026-11-05
Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests; … As a condition precedent to bringing an action under this section, the department and the authorized insurer must have been given 60 days' written notice of the violation. … No action shall lie if, within …
[2] Florida Statutes · § 626.9541(1)(i)3.d, 3.f «Unfair claim settlement practices» · checked 2026-11-05
3. Committing or performing with such frequency as to indicate a general business practice any of the following: … d. Denying claims without conducting reasonable investigations based upon available information; … f. Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of …
[3] TDI · checked 2026-11-05
If you're not satisfied with the outcome of your dispute, you have the right to sue the insurance company in a court of law. You can use these resources to find legal help. You can also ask for alternative dispute resolution, which uses mediation with a neutral third party to settle disputes outside court.
How we found this
We matched your question to 3 official sources, quoted the exact lines, and re-checked each quote against its source on 2026-11-05.
What we don’t know yet
Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.
Every answer is checked against the official rule it quotes.
Information only — not legal advice. Your plan, insurer or agency decides.
This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.
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