sharminlaw

Bad Faith Claims in Uninsured/Underinsured Motorist Cases

Mandatory arbitration of UM coverage is binding and enforceable.  If your policy contains language to this effect, there is strong incentive for the insurance company to refuse to settle for anything exceeding the policy limits because if the insured is forced into arbitration, it is likely the settlement amount will be lower.  However, Florida law allows to the insured to collect full tort damages against the insurer exceeding the policy limits when they committed a violation in failing to settle a UM claim.  This puts the insurer at risk.  They fear bad faith claims because there is no cap on the damages and damages could exceed the policy limits.  If you are injured in a car accident with an uninsured/underinsured motorist, be sure to seek the advice of a Palm Beach County accident attorney immediately.