Kenny Habetz Injury Law is proud to serve Crowley, Lafayette, and communities throughout Acadiana with dedicated representation for policyholders fighting back against insurance companies that refuse to play fair. After an accident, injured Louisiana residents expect their insurance company or the at-fault party’s insurer to handle their claim honestly and promptly. Too often, that’s not what happens.
What You Need to Know About Bad Faith Insurance in Louisiana
Insurance companies owe their policyholders a duty of good faith and fair dealing. When an insurer denies a valid claim without justification, delays payment without explanation, or lowballs a settlement it knows is worth more, that conduct may cross the line from ordinary claims handling into what Louisiana law calls “bad faith.”
Louisiana has some of the strongest policyholder protection statutes in the country. Under Louisiana Revised Statutes 22:1892, insurers are required to pay claims within 30 days of receiving satisfactory proof of loss. When an insurer’s failure to pay is found to be arbitrary, capricious, or without probable cause, Louisiana law allows the policyholder to recover a penalty generally calculated as 50 percent of the amount owed, or a statutory minimum, whichever is greater plus reasonable attorney fees. The law was restructured effective July 1, 2024, folding in duties that were previously spread across two separate statutes, so even long-time Louisiana claimants may not realize how the rules have changed.
Common Challenges People Face With Bad Faith Insurance Claims
Fighting an insurance company is rarely a fair fight when you’re doing it alone. Some of the most common tactics Louisiana policyholders run into include:
- Unreasonable delay. The insurer sits on a claim for months without a clear reason, hoping the policyholder gives up or settles for less out of financial desperation.
- Lowball offers. An adjuster offers a settlement far below the actual value of medical bills, lost wages, and property damage, betting that the claimant won’t know any better.
- Denial without investigation. A claim gets denied based on a technicality or misapplied policy language, without a genuine review of the facts.
- Shifting blame. The insurer disputes liability or coverage even when the evidence clearly supports the claim.
- Communication breakdowns. Adjusters stop returning calls or emails, leaving policyholders in the dark about the status of their own claim.
Proving bad faith requires more than showing an insurer said no. It requires documenting a pattern of unreasonable conduct, which is exactly why building a paper trail from the very first contact with an insurance company matters.
How to Know When You Should Contact a Lawyer for a Bad Faith Insurance Issue
Consider speaking with an attorney if any of the following apply to your situation:
- Your claim has gone unresolved for more than 30 days without a clear reason
- You received a settlement offer that doesn’t come close to covering your actual damages
- The insurer denied your claim citing a policy exclusion that doesn’t seem to apply
- You’ve provided all requested documentation and still haven’t received payment
- An adjuster has stopped communicating or keeps requesting the same paperwork repeatedly
Why Bad Faith Insurance Issues Matter for Your Rights and Financial Future
An unresolved insurance dispute isn’t just frustrating it can leave accident victims unable to pay medical providers, cover lost wages, or repair damaged property while bills pile up. Insurance companies count on policyholders not knowing their rights or not having the resources to push back. Louisiana’s bad faith statutes exist specifically to discourage this kind of conduct by making it financially costly for insurers who act unreasonably.
Policyholders can also file a complaint directly with the Louisiana Department of Insurance if they believe a claim has been delayed, denied, or underpaid unfairly.
Settlement vs. Litigation: What Bad Faith Claims Typically Look Like
Most bad faith disputes follow a similar path:
- Initial claim submission the policyholder files a claim and provides supporting documentation
- Insurer response the insurer accepts, denies, delays, or offers an inadequate settlement
- Demand letter an attorney sends a formal demand outlining the claim’s value and the insurer’s obligations under Louisiana law
- Negotiation many disputes resolve at this stage once the insurer recognizes the strength of the claim and the risk of statutory penalties
- Litigation if the insurer still refuses to act in good faith, a lawsuit may be filed seeking policy benefits, statutory penalties, and attorney fees
Most cases settle before trial, but insurers respond differently when they know an attorney is prepared to litigate a bad faith claim through the Lafayette Parish Courthouse or Acadia Parish Courthouse if necessary.
A Louisiana Family’s Experience
After a serious accident on I-10 near Lafayette, one Acadiana family assumed their claim would be handled quickly given the clear evidence of fault. Instead, the insurance company delayed for months, requested the same documents repeatedly, and eventually offered a fraction of what the medical bills actually totaled. Frustrated and running out of patience, the family turned to Kenny Habetz Injury Law. With a documented history of the insurer’s delays and a formal demand grounded in Louisiana’s bad faith statutes, the case moved toward a resolution that reflected the true value of their claim without the family having to accept a lowball number out of financial pressure.
Why Kenny Habetz Injury Law Is the Trusted Advocate Against Insurance Companies
Insurance companies have teams of adjusters and attorneys working to minimize payouts. Louisiana families deserve someone in their corner who understands the same playbook. Kenny Habetz Injury Law has stood up for accident victims throughout Crowley, Lafayette, Baton Rouge, and the surrounding Acadiana region who were failed by insurers that put profits ahead of people.
What sets our approach apart:
- Free consultations with no obligation
- No fee unless we win your case
- Direct experience negotiating with and litigating against major insurance carriers
- A team that understands Louisiana’s specific bad faith laws and how to use them
Don’t face insurance companies alone when in doubt, Go Kenny.
Frequently Asked Questions About Bad Faith Insurance Claims
What counts as bad faith under Louisiana law? Conduct such as unreasonable delay, denial without investigation, or failing to pay a claim within the required timeframe without justification can support a bad faith claim under Louisiana Revised Statutes 22:1892.
Can I pursue a bad faith claim against my own insurance company, or only the other driver’s insurer? Bad faith obligations can apply to your own insurer as well as a third party’s insurer, depending on the type of policy and the conduct involved.
What can I recover in a bad faith insurance case? Beyond the underlying policy benefits, Louisiana law allows for statutory penalties and attorney fees when an insurer’s conduct is found to be unreasonable.
How long do I have to file a bad faith claim? Deadlines depend on the type of claim and when the underlying loss occurred. Because Louisiana’s prescriptive periods can be easy to miscalculate, it’s important to consult an attorney promptly.
Do I need proof that my insurer acted in bad faith, or is a denial enough? A simple denial isn’t automatically bad faith. Proving a claim typically requires documentation showing the insurer’s conduct was arbitrary, capricious, or without a reasonable basis.
Schedule Your Free Case Review Today
For years, Louisiana families have turned to Kenny Habetz Injury Law when an insurance company stopped treating them fairly. If your claim has been delayed, denied, or undervalued, you don’t have to accept it.
Call Kenny Habetz Injury Law today for a free consultation, or schedule your free case review online. Go Kenny for the representation you deserve.
