# Bad Faith Insurance in Texas | Attorney Brian White **Table of Contents***[*Expand*]* 1. What Is Bad Faith Insurance? 2. How Does Texas Law Protect You? 3. Common Examples of Bad Faith by Insurance Companies 4. How To Know if You’re a Victim of Bad Faith 5. What To Do if You Suspect Bad Faith 6. Contact a Houston Personal Injury Lawyer to Help You With Your Claim ![Bad Faith Insurance in Texas](https://attorneybrianwhite.com/wp-content/uploads/2025/07/Bad-Faith-Insurance-in-Texas-300x200.jpg) When you buy insurance, you trust the company to be there for you in times of need. Whether it’s after a car accident, house fire, or medical emergency, insurance is meant to provide financial protection.  However, what happens when your insurance company doesn’t hold up their end of the deal? In Texas, this can be a case of [bad faith insurance](https://attorneybrianwhite.com/houston-tx/insurance-bad-faith-lawyer/), and you may have legal rights to fight back. This article will explain what bad faith insurance means, how it applies in Texas, the signs to look for, and what to do if it happens to you.  If you’re dealing with an unfair insurance company, this information may help you understand your options. ## What Is Bad Faith Insurance? [Bad faith insurance](https://en.wikipedia.org/wiki/Insurance_bad_faith) happens when an insurance company doesn’t act honestly or fairly when handling your claim. Insurance companies are required by law to treat their customers in good faith. That means they should investigate your claim quickly, communicate clearly, and pay you fairly if your policy covers the loss.  Sometimes, insurers delay payments, deny valid claims, or make low offers without a good reason. When they do this, they may be acting in bad faith. Bad faith doesn’t just mean the company made a mistake. It means they knew—or should have known—that their actions were unfair or dishonest. For a legal consultation call [(713) 500-5000](tel:+17135005000) ## How Does Texas Law Protect You? [Texas law](https://insuranceclaimrecoverysupport.com/texas-bad-faith/) gives strong protection to consumers against bad faith insurance. The Texas Insurance Code and court decisions have created rules insurance companies must follow. If they break these rules, you may be able to sue for damages. Under Texas law, insurance companies must: - Investigate claims promptly - Pay valid claims on time - Provide clear reasons for denying a claim - Not to mislead or deceive the policyholder If an insurer breaks these duties, they may face penalties or have to pay you more than just the amount of your claim. This can include extra money for emotional stress, legal fees, and even [punitive damages](https://attorneybrianwhite.com/faqs/what-are-punitive-damages-in-texas/). ## Common Examples of Bad Faith by Insurance Companies Bad faith can happen in many ways. Some of the [most common examples](https://www.justia.com/injury/insurance-bad-faith/) in Texas include: - **Unreasonable claim delays**: The insurance company takes too long to respond or investigate, leaving you in financial trouble. - **Denying a valid claim:** Your claim is clearly covered by your policy, but they still deny it without a good reason. - **Undervaluing your claim:** The company offers you much less than your claim is worth, hoping you’ll accept out of desperation. - **Failing to explain the denial**: They deny your claim but don’t give a clear explanation or show any [evidence](https://attorneybrianwhite.com/blog/understanding-evidence-in-a-personal-injury-case/) to back it up. - **Not communicating**: The company avoids calls, emails, or letters to drag out the process. These actions can cause serious stress and financial hardship, especially when you’re already dealing with a crisis. That’s why the law gives you the right to fight back. [Click to contact](/contact-us/) us today ## How To Know if You’re a Victim of Bad Faith It’s not always easy to tell if your [insurance company](https://attorneybrianwhite.com/blog/the-inside-scoop-on-how-insurance-companies-will-fight-your-personal-injury-claim/) is acting in bad faith. Sometimes delays or denials happen for legitimate reasons. But if you feel like you’re being treated unfairly, it’s worth taking a closer look. Watch out for red flags such as: - Getting different answers from different representatives - Being asked for the same documents over and over - Having your calls ignored or sent to voicemail repeatedly - Receiving vague or confusing letters that don’t explain much - Being pressured to take a quick, low settlement If you notice these signs, it’s a good idea to speak to an attorney who [understands Texas insurance laws](https://attorneybrianwhite.com/blog/understanding-the-basics-of-at-fault-insurance-in-texas/). A lawyer can review your case and help [determine whether bad faith](https://www.findlaw.com/consumer/insurance/elements-of-a-bad-faith-insurance-claim.html) is involved. Complete a [Case Evaluation Form](/contact-us/) Now ## What To Do if You Suspect Bad Faith If you think your insurance company is acting in bad faith, you don’t have to deal with it alone. There are steps you can take to protect yourself: - **Document everything**. Keep all letters, emails, and notes from phone calls. Write down the names of anyone you speak with and what they say. - **Ask for written reasons**. If your claim is denied, ask for a clear explanation in writing. - **Stay calm and polite**. Avoid angry language, but be firm. Let them know you’re keeping track of what’s happening. - **Contact the Texas Department of Insurance (TDI)**. You can file a complaint with TDI, and they may investigate. - **Speak to a bad-faith insurance lawyer**. An attorney can look at your policy, review how the insurer handled your [claim](https://attorneybrianwhite.com/blog/claim-vs-lawsuit/), and help you take legal action if needed. Taking these steps can help you protect your rights and increase your chances of getting the compensation you deserve. ## Contact a Houston Personal Injury Lawyer to Help You With Your Claim Insurance is supposed to be there for you when life takes a wrong turn. If your insurance company lets you down, it can feel overwhelming and unfair, but you are not powerless. Texas law gives you the right to fair treatment, and there are strong legal tools available to protect you.  [Contact](https://attorneybrianwhite.com/contact-us/) the [Houston](https://www.houstontx.gov/) personal injury law firm of [Attorney Brian White Personal Injury Lawyers](https://attorneybrianwhite.com/about/) at [(713) 500-5000](tel:+17135005000). Our offices Houston — Greenway/Upper Kirby 3120 Southwest Freeway, Suite 350 Houston, TX 77098 Open 24 hours daily Call [(713) 364-1466](tel:+17133641466) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%203120%20Southwest%20Freeway%2C%20Suite%20350%2C%20Houston%2C%20TX%2077098) Houston — East Freeway 11811 East Freeway, Suite 630-06 Houston, TX 77029 Open 24 hours daily Call [(713) 609-1893](tel:+17136091893) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%2011811%20East%20Freeway%2C%20Suite%20630-06%2C%20Houston%2C%20TX%2077029) Houston — South Loop 2600 South Loop West, Suite 293 Houston, TX 77054 Open 24 hours daily Call [(713) 281-4904](tel:+17132814904) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%202600%20South%20Loop%20West%2C%20Suite%20293%2C%20Houston%2C%20TX%2077054) Houston — Katy Freeway 11511 Katy Fwy, Suite 515 Houston, TX 77079 Open 24 hours daily Call [(713) 909-7537](tel:+17139097537) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%2011511%20Katy%20Fwy%2C%20Suite%20515%2C%20Houston%2C%20TX%2077079) Houston — Clear Lake 1300 Bay Area Blvd, Suite B268 Houston, TX 77058 By appointment only Call [(936) 508-2854](tel:+19365082854) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%201300%20Bay%20Area%20Blvd%2C%20Suite%20B268%2C%20Houston%2C%20TX%2077058) The Woodlands 1776 Woodstead Ct, Ste. 203 The Woodlands, TX 77380 By appointment only Call [(281) 843-9777](tel:+12818439777) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%201776%20Woodstead%20Ct%2C%20Ste.%20203%2C%20The%20Woodlands%2C%20TX%2077380) Champion Forest (Cypress) 4606 FM 1960 Rd W, Ste. 444 Houston, TX 77069 By appointment only Call [(281) 843-9777](tel:+12818439777) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%204606%20FM%201960%20Rd%20W%2C%20Ste.%20444%2C%20Houston%2C%20TX%2077069) --- ### About the Author Brian White ![About the Author Brian White](https://attorneybrianwhite.com/wp-content/uploads/2024/12/brian-white-houston-personal-injury-lawyer-300x300.jpg) [Brian White](https://attorneybrianwhite.com/about/our-attorneys/brian-white/) earned his J.D. from South Texas College of Law in Houston and is licensed to practice in Texas. He is a [Board-Certified](https://attorneybrianwhite.com/resources/brian-white-is-board-certified-in-personal-injury-trial-law/) Personal Injury Trial Lawyer. Dedicated to giving back, he actively supports local charities and [community initiatives](https://attorneybrianwhite.com/about/community-involvement/). [Client testimonials](https://attorneybrianwhite.com/about/testimonials/) highlight Brian’s compassion, open communication, and dedication to achieving the best outcomes for those he represents. [Avvo](https://www.avvo.com/attorneys/77098-tx-brian-white-74113.html) / [Justia](https://lawyers.justia.com/lawyer/brian-elliott-white-201630) / [Linkedin](https://www.linkedin.com/in/attorney-brian-white-378410166) / [Facebook](https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2FBrianWhiteLawFirm%2F/) / [Youtube](https://www.youtube.com/channel/UCDdkDcGkbY2GFTzpeTWypFQ) / [Instagram](https://www.instagram.com/attorneybrianwhite/?hl=en) / [Yelp](https://www.yelp.com/biz/brian-white-and-associates-houston) / Call or Text [(713) 500-5000](tel:+17135005000) or Complete a [Case Evaluation Form](/contact-us/) Bad Faith Insurance Blog Posts: [![3 Signs of a Bad Faith Insurer](https://attorneybrianwhite.com/wp-content/themes/brian-white/assets/app/img/default-thumb.webp)](https://attorneybrianwhite.com/blog/3-signs-of-a-bad-faith-insurer/) [3 Signs of a Bad Faith Insurer](https://attorneybrianwhite.com/blog/3-signs-of-a-bad-faith-insurer/) The law obligates insurance companies to handle claims and policyholders with good faith. Unfortunately, not all [![Denial of Insurance Claims in Texas](https://attorneybrianwhite.com/wp-content/uploads/2018/05/denial-of-insurance-claims-300x200.jpg)](https://attorneybrianwhite.com/blog/denial-of-insurance-claims/) [Denial of Insurance Claims](https://attorneybrianwhite.com/blog/denial-of-insurance-claims/) The recovery process doesn’t have to end if an insurance company denies your claim. You can – and should – [![Bad Faith and Third-Party Insurance Claims in Texas](https://attorneybrianwhite.com/wp-content/themes/brian-white/assets/app/img/default-thumb.webp)](https://attorneybrianwhite.com/blog/bad-faith-and-third-party-insurance-claims-in-texas/) [Bad Faith and Third-Party Insurance Claims in Texas](https://attorneybrianwhite.com/blog/bad-faith-and-third-party-insurance-claims-in-texas/) Most individuals who file personal injury claims within the state of Texas will have to deal with insurance companies --- Source: https://attorneybrianwhite.com/blog/bad-faith-insurance-in-texas/