What is Gaslighting?
Have you ever felt like your insurance company isn't listening to you? Or perhaps you've been told your claim isn't valid or covered, even though you know it is. If so, you may be experiencing gaslighting, a common tactic used by insurance companies to manipulate policyholders and avoid paying legitimate claims.
Gaslighting is a form of psychological manipulation in which a person or group creates a false narrative that causes another individual to doubt their own perceptions, judgment, and memories. This insidious tactic often involves denying or distorting reality, minimizing the victim's experiences, and gradually eroding their self-confidence. This manipulative behavior can occur in various relationships, including romantic partnerships, friendships, family dynamics, professional settings, and even with your insurance company.
Gaslighting Examples: What Insurance Gaslighting Looks Liks
Insurance companies are sometimes known to employ gaslighting tactics when handling claims, potentially undermining policyholders' legitimate attempts to receive rightful compensation. Insurance companies may use gaslighting tactics to do the following:
- Minimize the severity of your claim. They may downplay your injuries or property damage, suggesting that the situation isn't as bad as it actually is.
- Question your credibility. They may cast doubt on your honesty or suggest that you're exaggerating your claims.
- Deny and delay the claims process. They may stall the process, hoping you'll give up or accept a lower settlement.
- Misrepresent policy provisions. Insurance companies may engage in gaslighting by misrepresenting policy provisions or pertinent facts related to coverage, thereby misleading the insured about the validity or extent of their coverage. Colorado law outlines various unfair methods of competition and deceptive practices in the insurance industry, including but not limited to the misrepresentation of a policy, making misleading claims, and false advertising (see Colorado Revised Statute § 10-3-1104).
- Fail to disclose coverage exclusions. Additionally, insurance companies may gaslight by accepting premiums and issuing policies that are invalid from the start, thereby deceiving the insured into believing they have valid coverage when they do not. This was highlighted in Bird v. Central Mfrs. Mut. Ins. Co., 168 Ore. 1, where the court condemned the practice of issuing a policy that does not effectuate the intended coverage despite accepting the insured's premium.
These practices can create confusion and doubt in the insured, effectively gaslighting them into questioning their understanding and rights under their insurance policies.
Insurance Gaslighting Can Lead to a Bad Faith Claim
Under legal standards, insurance companies are contractually and ethically obligated to act in good faith, which means they must process claims fairly, promptly, and honestly. When insurers engage in persistent manipulation, unreasonable claim denials, or deliberate misrepresentation of policy terms, they may be violating this fundamental legal requirement.
Policyholders who experience what appears to be systematic gaslighting might have grounds for a bad faith insurance claim, potentially allowing them to seek additional damages beyond the original claim's value. If an insurer's conduct demonstrates a pattern of deceptive practices intended to avoid paying legitimate claims, affected individuals are encouraged to document all interactions and seek legal counsel.
Get Experienced Legal Counsel
If you've been gaslighted by your insurance company, Curtis | Walton Law can help. With decades of combined legal experience, our attorneys have a proven track record of success in helping clients obtain favorable results in their cases. We have helped countless clients hold negligent parties liable for the hurt and damages they cause our clients, having secured millions for our clients.
Should you retain our counsel, our experienced attorneys can help you understand whether you have a claim and help with the following legalities:
- Investigating your claim: We can thoroughly examine your case to gather evidence and build a strong legal argument. Our attorneys offer clients personalized counsel, tailoring our strategy to meet your individual needs and case specifics.
- Calculating your damages: Let our firm help you determine what your economic and noneconomic damages may be. We have experience calculating these damages and have relationships with medical and financial experts who can help establish the full value of your claim.
- Negotiating with insurance adjusters: With an understanding of consumer protection laws, the Colorado Unfair Claims Settlement Practices Act, and other relevant state and case law, our team can fight for your rights and demand fair compensation. We can also leverage our experience and negotiation skills in talking with insurers about what a favorable outcome is.
- Representing you in court: If necessary, our attorneys can file a lawsuit to hold your insurance company accountable and litigate the case. We have courtroom experience and are not afraid to aggressively defend your right to fair compensation if you are wronged by insurers who owe you a duty of care.
To request a free consultation and discuss your concerns about your insurer acting in bad faith with our attorneys, call (720) 815-4402.