Lexington Bad Faith Insurance Lawyer
Legally Reviewed by Stephen Vicari: Sep 12, 2026
When an insurance company decides not to follow the rules that govern its business, victims suffer the consequences. South Carolina holds insurers accountable for dishonest practices through bad faith insurance laws. If your insurance claim was denied unfairly, delayed unreasonably, or settled for significantly less than its worth, you have legal options.
Stewart Law Offices helps injured clients throughout Lexington County fight back against insurance companies that break their legal duty to act honestly and fairly. Our legal team includes Stephen Vicari, a South Carolina Bar-licensed attorney with more than 10 years of experience helping injured clients across Lexington County.
When you work with our firm, your case receives direct attention from attorneys who genuinely listen to your situation and treat you with respect. We understand how frustrating it feels when an insurer treats you unfairly, and we’re prepared to pursue every available legal remedy on your behalf.
What Is Insurance Bad Faith In Lexington
Insurance bad faith occurs when an insurance company, required by law to handle claims fairly and honestly, instead puts its own profits ahead of the policyholder’s legitimate interests. Under South Carolina Code § 38‑59‑20, insurers must act in good faith toward anyone making a claim, whether a policyholder or a third‑party claimant. When an insurer misrepresents coverage, delays payment without cause, or forces claimants into litigation, such conduct may constitute bad faith.
Bad faith is not simply refusing a claim. Insurance companies have the legal right to deny coverage if there is a valid basis under the policy terms. Bad faith occurs when an insurer denies a valid claim without justification, delays payment unreasonably, misrepresents policy language or the law, conducts an inadequate investigation, or offers substantially less compensation than a claim is reasonably worth. These practices are unlawful, and victims of bad faith insurance can pursue a separate lawsuit to recover not only the original claim amount but also damages for the insurer’s misconduct.
According to NAIC data, insurance complaints nationwide have risen significantly in recent years. In 2025, car insurance customers filed 35,063 complaints, up 7.5% from 32,578 in 2024, while homeowners filed 18,282 complaints, a 12.4% increase from 16,264 in 2024. These rising numbers highlight growing dissatisfaction across major insurance sectors. Auto and health insurance complaints account for the largest share, with delays in claim processing and claim denials among the most frequently cited reasons. This data underscores a growing problem of insurers mishandling claims in ways that harm policyholders.
Common Bad Faith Insurance Tactics in Lexington
Insurance companies employ numerous strategies that may cross the line into illegal bad faith conduct. Understanding these tactics helps you recognize when your insurer is treating you unfairly.
Denying Claims Without a Valid Reason
Insurers must provide legitimate explanations when denying claims. If your claim was denied without justification or with a reason that doesn’t align with policy language or law, you likely have a bad-faith claim. Our attorneys know what constitutes a valid reason for denial under South Carolina insurance law.
Poor or Delayed Investigations
Every insurance company has a duty to conduct thorough investigations promptly. If an insurer rushes through the investigation, fails to interview witnesses, ignores medical evidence, or takes an unreasonably long time to investigate, they’re likely violating their legal duties.
Refusing to Pay Valid Claims
When your claim clearly falls within your policy coverage, and you’ve provided appropriate documentation, the insurer must pay. Refusing to settle or pay a valid claim is textbook bad faith. This occurs regardless of whether it’s your policy or the at-fault party’s insurance.
Making Lowball Settlement Offers
Insurance adjusters frequently offer settlements substantially below what claims are actually worth. While negotiation is normal, consistently refusing to budge from an unreasonably low offer despite evidence your claim is worth more constitutes bad faith.
Delaying Payment Unreasonably
Even after approving your claim, insurers must pay within a reasonable timeframe. Sitting on approved claims while injured people struggle financially is a form of bad faith.
Ignoring Documentation Requests
Policyholders have the right to request documentation supporting insurers’ decisions. Refusing to provide documents or explanations violates the insurer’s good-faith obligation.
Misrepresenting Policy Terms or Law
Insurance companies must be truthful about what their policies cover and how South Carolina law applies. Deliberately twisting policy language or misrepresenting legal requirements to deny your claim is bad faith.
Threatening or Harassing Claimants
Professional and respectful treatment is required. Threats, aggressive collection tactics, or harassment of claim filers constitute violations of bad faith.
A Lexington bad faith insurance lawyer can document these actions and present them as evidence that the company stepped outside good faith claim handling.
Damages You Can Recover in Bad Faith Cases in Lexington
A successful bad faith claim recovers more than just the amount the insurer should have paid. You can obtain consequential damages, including all costs associated with litigating against the insurance company, attorney fees, and additional compensation for the harm caused by their bad faith conduct.
In cases where an insurer engages in intentional misconduct or recklessness, punitive damages may be available to punish the insurer and deter similar conduct by other carriers.
Consulting a car accident lawyer in Lexington, SC promptly after you suspect misconduct protects all evidence and allows time for a thorough investigation and negotiation before any lawsuit filing becomes necessary.
How to Pursue a Bad Faith Insurance Claim in South Carolina
Your bad faith claim typically begins while you are pursuing your original claim with the insurance company. It is essential to document every communication, denial, delay, settlement offer, and explanation provided by the insurer.
When the insurance company’s handling of your claim becomes unreasonable or unfair, you should consult an experienced South Carolina bad faith attorney. The Lexington bad faith insurance attorney will typically send a formal demand letter to the insurer, notifying the insurer of the bad-faith claim and demanding proper resolution of the underlying claim. Many bad-faith cases resolve through settlement negotiations once the insurer understands that you have legal representation and are prepared to litigate.
If settlement discussions fail, your attorney can file a lawsuit for bad faith in the Court of Common Pleas in the county where you reside or where the insurance company does business.
Why Insurance Companies Commit Bad Faith
Insurance companies are profit-driven businesses. Every claim they deny or underpay represents money they keep for themselves. Volume adjusters may be incentivized based on claims denied rather than on claims appropriately paid. Some carriers have institutional practices designed to wear down claimants into accepting unfair settlements. Regardless of the reason, South Carolina law prohibits these practices and holds insurers accountable when they occur.
Visit Our Lexington Bad Faith Insurance Claims Lawyers
Protect Your Rights Against Insurance Bad Faith
Don’t let an insurance company take advantage of you when you need help most. Stewart Law Offices stands ready to fight for fair treatment and full compensation. Call us at (803) 520-0003 or contact us online for your free consultation with Attorney Stephen Vicari.
We handle bad-faith claims on a contingency basis, meaning you pay nothing up front and no attorney’s fees unless we recover compensation for you through settlement or a verdict in Lexington County and throughout South Carolina.
FAQs About Lexington Bad Faith Insurance Claims
Bad faith claims in Lexington, SC, can be brought against both first-party insurers who handle your own claims and third-party insurers of the person or entity that caused your harm, although proving third-party bad faith is generally more difficult because third-party insurers owe a lower legal duty to claimants than they owe to their own policyholders. Your Lexington bad faith insurance attorney can evaluate the conduct of both the third-party insurer and your own insurer to determine which bad faith claims are viable in your specific situation.
Not every unfavorable settlement offer or claim denial constitutes bad faith in Lexington, SC, because insurers have a legal right to make reasonable business judgments about claim value and to deny coverage when a legitimate basis exists under the policy. Bad faith requires proof that the insurer acted without valid justification, failed in its duty to investigate, or knowingly misrepresented facts or law. An experienced bad faith insurance attorney can help you distinguish between a hardship and actionable bad faith.
The timeline for a bad faith lawsuit in South Carolina depends on whether settlement negotiations resolve the case or whether a trial becomes necessary, how complex the claim file and evidence are, and the current docket of the courts in Lexington County. Simple cases may resolve within months through settlement, while complex cases requiring discovery, depositions, and expert witnesses can take 1 to 2 years or longer if they proceed to trial.
If you suspect bad faith by your insurer in Lexington, SC, preserve every piece of correspondence including emails, letters, claim forms, photos, medical records, bills, denied claim letters, recorded phone calls with the insurer, notes documenting phone conversations, and any documents the insurer provided during the claims process. Create a detailed written timeline documenting when you reported the claim, when you expected payment, when you requested documents or information, and when the insurer responded or failed to respond.
In South Carolina, you can pursue a bad faith claim for certain bad faith conduct that occurs during the claims process, even before a final denial, such as unreasonable delays, refusing to investigate, misrepresenting policy terms, or refusing to respond to reasonable requests for information. However, for claim denials specifically, you generally must wait until the insurer has issued its final denial before filing a bad faith lawsuit, because you must show that the insurer breached its duty by denying a valid claim.