There are several steps New Mexico residents can take to ensure they are informed and properly wary of potential insurance bad faith:
Understand Your Policy: The first step is to thoroughly understand your insurance policy. Know what is covered and what your rights are under the policy. This knowledge will empower you to identify when the insurance company might be acting in bad faith.
Document Everything: Keep detailed records of all communications with your insurance company, including dates, times, who you spoke with, and the content of the conversation. Also, keep all written communications and claim documents. This documentation can be vital in a bad faith claim.
Attempt to Resolve the Dispute: Before taking legal action, attempt to resolve the dispute with your insurance company. Sometimes, miscommunications or misunderstandings are the root of the issue, and these can be resolved through dialogue.
Consult with an Attorney: If your attempts at resolution are unsuccessful, consult with an attorney who specializes in insurance law and, specifically, bad faith claims. An experienced lawyer can provide you with a clear understanding of your legal rights and options.
File a Complaint: You can also file a complaint with the New Mexico Office of the Superintendent of Insurance. This regulatory body oversees insurance companies operating in the state and can investigate complaints about insurance practices.
Legal Action: If necessary, your attorney may advise you to file a lawsuit against the insurance company for bad faith. In a successful bad faith lawsuit, you may recover the original amount due under the policy, along with additional damages for the insurance company's bad faith conduct.