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.
What is Gaslighting?
Gaslighting is a type of psychological manipulation where one part makes another question their own thoughts, memories, and judgment by creating a false version of events. This tactic often involves lying about or twisting the truth, dismissing feelings, and slowly breaking down confidence. Gaslighting can happen in many different relationships, like romantic ones, friendships, families, workplaces, and even with companies like your insurance provider.
Gaslighting Examples: What Insurance Gaslighting Looks Liks
Insurance companies sometimes use gaslighting tactics when dealing with claims, making it harder for policyholders to get the compensation they deserve.
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 doubt your honesty or suggest that you're exaggerating your claims.
- Deny and delay the claims process. They may slow the process, hoping you'll give up or accept a lower settlement.
- Misrepresent policy provisions. Insurance companies may give false information about policy details or important facts, making it unclear to the insured what their coverage actually includes. 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 mention coverage exclusions. Insurance companies may gaslight by taking payments and providing policies that were never valid, tricking the insured into thinking they have proper coverage when they actually don’t. This was highlighted in the Bird v. Central Mfrs. Mut. Ins. Co., 168 Ore. 1, where the court criticized the practice of issuing insurance policies that fail to provide the promised coverage, even after the insurer has accepted the customer’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. Insurers may violate this fundamental legal requirement when they engage in manipulation, unreasonable claim denials, or deliberate misrepresentation of policy terms.
Policyholders who experience what appears to be systematic gaslighting might have grounds for a bad-faith insurance claim, which could allow them to seek additional damages beyond the original claim's value.
If an insurance company repeatedly uses deceptive tactics to avoid paying valid claims, people affected should keep records of all communications and seek legal advice.
Get Experienced Legal Counsel
If you've been gaslighted by your insurance company, Curtis | Walton Law can help. Our attorneys have decades of combined legal expertise and a history of obtaining favorable results for our clients. We’ve successfully held countless negligent parties accountable, securing millions in compensation for the pain and losses our clients have endured.
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 needs and case specifics.
- Calculating your damages: Let our firm help you determine your economic and noneconomic damages. 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 also use our experience and negotiation skills to discuss a favorable outcome with insurers.
- 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.
When you need trusted advocates to fight for your rights and deliver justice, we’re here to help. Take the first step today—your case deserves nothing less.
To request a free consultation and discuss your concerns about your insurer acting in bad faith with our attorneys, call (720) 815-4402.