When a car accident happens, the aftermath is often overwhelming—medical bills pile up, income may be lost, and emotional stress can run high. In such moments, Florida residents rely on their insurance policies to provide timely support and financial relief. But for many, the real battle begins not with recovery but with the insurer. In personal injury cases, particularly auto accidents, some insurers employ tactics that delay, devalue, or deny valid claims. Fortunately, Florida law provides strong protections to shield injured policyholders from these bad-faith practices.
Understanding “Bad Faith” in Personal Injury Insurance Claims
In personal injury, bad faith refers to an insurer’s failure to handle a claim honestly and fairly, especially when liability is clear. Florida law requires insurers to settle claims promptly and in good faith when, under the circumstances, it could and should do so.
Common bad-faith tactics in auto accident cases include:
- Delaying communication or failing to respond to the injured party’s inquiries.
- Making lowball settlement offers that don’t reflect the claim’s true value.
- Refusing to pay for necessary medical treatment covered under the policy.
- Dragging out the claims process will pressure the injured party to accept less than they’re owed.
- Failing to investigate the claim adequately or ignoring evidence that supports the policyholder’s injuries.
These practices can leave injured Floridians in financial and legal limbo, unable to cover medical costs, vehicle repairs, or lost wages when they need help most.
Florida Statutes That Protect Policyholders
Florida law includes key statutes aimed at preventing insurance companies from acting unfairly, especially when policyholders are dealing with the aftermath of a personal injury, such as a car accident.
Civil Remedy for Bad Faith: Florida Statute § 624.155
Florida Statute § 624.155 allows policyholders to take legal action when an insurance company acts in bad faith. This statute is a cornerstone of consumer protection in the state’s insurance landscape.
Under this law, a policyholder can seek damages when an insurer:
- Fails to attempt a fair and timely settlement when it could and should have
- Does not provide a prompt explanation for a claim denial
- Avoids conducting a proper investigation into the facts of the case or the extent of injuries
To pursue a claim under § 624.155, the injured party—or their attorney—must file a Civil Remedy Notice with the Florida Department of Financial Services. This notice gives the insurer a 60-day period to fix the issue, including paying the claim or addressing the bad faith conduct.
If the insurer fails to act within those 60 days, the policyholder can pursue a bad faith lawsuit, potentially recovering damages that exceed the original policy limits. This is particularly critical in severe injury cases, where medical expenses and lost wages quickly surpass basic coverage thresholds.
Recovery of Attorney’s Fees: Florida Statute § 627.428
In addition to the bad faith statute, Florida Statute § 627.428 provides another critical layer of protection: the right to recover attorney’s fees if a policyholder has to sue their insurer and wins.
For personal injury claimants, this statute often makes the difference between being able to pursue justice and walking away under pressure. Legal costs can be overwhelming, especially when the injured party is already struggling with medical bills, rehabilitation, and lost income.
Under § 627.428, if the court favors the policyholder—even if the insurer ultimately pays the claim before trial—the insurer may still be required to pay reasonable attorney’s fees. This discourages companies from unreasonably denying or delaying valid claims, as they risk covering payout and legal costs.
Why These Statutes Matter
These two statutes ensure that insurance companies treat Florida policyholders fairly and in good faith. They create strong incentives for insurers to respond promptly, evaluate claims thoroughly, and avoid improper denials. For injured individuals facing high financial stakes, these legal protections are a vital backstop against bad faith tactics.
The Importance of Prompt and Fair Claim Handling
In Florida, insurers must promptly evaluate and settle personal injury claims, especially when the policyholder’s liability is clear. For instance, if you sustain serious injuries in a car accident caused by another driver, and the insurer has evidence of the injury and fault, it is expected to make a timely and reasonable settlement offer.
Suppose it fails to do so, and the injured party ends up going to trial and securing a judgment above the policy limit. In that case, the insurer can be held liable for the full amount—not just the original policy maximum. This is meant to prevent companies from gambling with their client’s financial futures by unnecessarily risking a trial.
What Injured Policyholders Should Do
If you suspect your insurer is engaging in bad-faith practices after a car accident:
- Document all interactions – Keep emails, letters, phone call logs, and records of all submitted medical bills and reports.
- Request a written explanation – Ask for detailed reasons for any claim denial or delay.
- File a complaint – Submit a Civil Remedy Notice to the Florida Department of Financial Services.
- Consult an experienced personal injury lawyer – Legal counsel can evaluate whether your claim is being handled unfairly and help hold the insurer accountable.
Legal Protections That Matter for Florida’s Injured Drivers
Florida law doesn’t just promise protection—it provides real tools for car accident victims facing insurance company resistance. Statutes governing bad faith claims and attorney’s fees create a framework where insurers must act quickly, fairly, and in the best interest of their policyholders.
Understanding these rights is essential for those recovering from a crash. When insurers fail to meet their obligations, the law is on the side of the injured—ready to hold those companies accountable and ensure that justice, not delay, prevails.