If you’re dealing with an insurer that refuses to pay what you deserve, a Pennsylvania bad faith insurance lawyer can protect your rights and recover the compensation you are owed.
At Munley Law, we have been helping clients whose serious injuries have been undervalued, delayed, or outright denied for more than 65 years. Our team combines decades of experience with board-certified trial lawyers to hold insurance companies accountable for their misconduct.
Munley Law does not handle property or commercial insurance disputes. Our sole focus is on personal injury insurance bad faith claims, ensuring your matter receives specialized attention.
Contact us today for a free case review and take the first step toward justice.
What Is Insurance Bad Faith in Pennsylvania?
Insurance bad faith happens when an insurance company treats a policyholder unfairly or refuses to handle a claim honestly. In Pennsylvania, insurers are required to handle personal injury claims fairly and in good faith. When they do not, injured people may have the right to seek compensation beyond what the policy normally provides.
Contact a Personal Injury Lawyer at Munley Law
Call Us At 844-686-5397 How Pennsylvania Law Defines Bad Faith (42 Pa.C.S. § 8371)
Under 42 Pa.C.S. § 8371, an insurer may be liable for bad faith if it acts with “dishonest purpose” or “self-interest,” or engages in conduct that is “unreasonable” under the circumstances. 
Examples include:
- Refusing to pay a valid claim without a reasonable basis
- Delaying claim payments to pressure a policyholder into a low settlement
- Misrepresenting policy terms or the value of medical evidence
This statute allows injured policyholders to recover damages beyond the policy limits, including attorney’s fees and, in some cases, punitive damages, highlighting Pennsylvania’s commitment to holding insurers accountable.
Examples of Bad Faith in Injury-Related Claims
In Pennsylvania personal injury cases, bad faith is often evident in the choices insurers make after an injury occurs. These decisions often increase financial pressure on injured people while protecting the insurer’s bottom line.
Delaying Medical Bill Payments
An insurer may agree that an injury is covered but still delay paying medical providers. This can happen after hospitals, specialists, or physical therapists submit complete records and billing. The delay shifts the burden to the injured person, who may face collection notices or be forced to pause treatment.
Undervaluing Serious Injury Cases
Insurance companies may accept that an injury occurred but assign a value that ignores its impact on daily life. This includes leaving out future surgeries, long-term therapy, permanent work limitations, or ongoing pain when calculating the claim’s value. The result is a settlement offer that does not match the real cost of the injury.
UM/UIM Denials
In uninsured and underinsured motorist claims, insurers may deny coverage even though the policy clearly includes UM/UIM benefits. This often happens when the insurer claims the injuries are “not serious enough” or argues that the at-fault driver had adequate coverage, despite evidence to the contrary. These denials can block access to benefits the injured person paid for.
Refusing to Thoroughly Investigate the Accident
Bad faith occurs when an insurer cuts corners during the investigation. This may include failing to review police reports, skipping witness interviews, or ignoring accident reconstruction findings. Some insurers close claims or deny liability before gathering the basic facts needed to properly evaluate the injury.
Ignoring Evidence of Traumatic Injury
Insurance companies may receive imaging results, specialist evaluations, or treating-doctor opinions that confirm a traumatic injury. Instead of addressing this evidence, they may rely on brief file reviews or opinions from doctors who never examined the injured person. This allows the insurer to argue the injury is minor or unrelated.
Lowball Injury Settlements
Insurance companies may make settlement offers that barely cover emergency room bills while ignoring follow-up care, physical therapy, or specialist treatment that has already been recommended.
These offers are often made while the injured person is still in treatment and before doctors can say whether the injury will heal fully. By pushing an early payout, the insurer locks the claim at its lowest possible value and avoids paying for future care or lasting limitations.
When an insurer handles a claim this way, the injured person may run out of options. Medical bills continue, income may be lost, and the pressure to accept an unfair settlement increases. Once a settlement is signed, the insurer is no longer responsible for future costs, even if the injury turns out to be permanent.
“Since 1959, we have secured over $1 billion in
compensation for our clients.”
Daniel W. Munley
We Only Handle Personal Injury Bad Faith Cases in Pennsylvania
Focusing solely on personal injury bad faith allows our team to provide specialized, results-driven representation. We do not handle homeowners, life, or disability insurance claims—ensuring every case we take receives expert attention.
What We Do Handle
We represent injured people in Pennsylvania when insurance companies act unfairly in claims involving bodily harm, including:
- Car accident injury bad faith claims
- Trucking accident insurance disputes
- Traumatic brain injury claim denials
- Catastrophic injury settlement delays
- UM/UIM bad faith related to bodily injury
- Wrongful death claim denials
- Failure to pay medical expenses promptly
Each of these cases involves insurance decisions that directly affect medical treatment, recovery, and financial stability after a serious injury.
What We Do NOT Handle
We do not handle insurance disputes that are unrelated to personal injury. This includes:
- Homeowners insurance claims
- Property damage disputes
- Commercial or business interruption claims
- Disability insurance denials
- Life insurance disputes
By limiting our work to personal injury insurance bad faith, we maintain deep experience in the specific policies, medical evidence, and claim tactics that matter most when someone has been seriously hurt.
Bad Faith Tactics Used by Pennsylvania Insurance Companies
Insurance companies often employ subtle and overt tactics to minimize payouts. These tactics matter because they can support a statutory bad faith claim under Pennsylvania law when they lack a reasonable basis.
Unreasonable Claim Denials After a Serious Injury
Some insurers deny claims despite clear evidence of injury or liability. This can include denying payment for medical bills, refusing to process PIP claims, or disputing UM/UIM coverage without cause.
Delays Designed to Force Low Settlement Acceptance
Insurers may drag out negotiations, hoping the injured party will accept less than fair compensation to cover ongoing medical costs or living expenses.
Misrepresenting Policy Terms or Medical Evidence
Some companies misstate policy provisions or claim that medical reports are insufficient, even when they support full coverage.
Underpaying Claims for Catastrophic Injuries
In cases involving permanent disabilities or traumatic injuries, insurers may undervalue claims to avoid paying the full extent of damages owed.
Failure to Investigate or Evaluate Injuries Properly
Insurance companies are required to thoroughly investigate claims. Failing to do so, ignoring expert medical evidence, or misrepresenting accident facts can constitute bad faith under Pennsylvania law
Signs Your PA Personal Injury Claim Is Being Handled in Bad Faith
If you notice any of the following signs, your insurer may be acting in bad faith:
- Endless document requests with no resolution
- Ignoring medical reports or expert opinions
- Undervaluing long-term care needs
- Denying UM/UIM benefits without justification
- Refusing fair settlement discussions
- Closing the claim prematurely
Early recognition helps protect your recovery and strengthens any legal action.
Common Personal Injury Cases Where Bad Faith Occurs in Pennsylvania
Bad faith practices by insurance companies can arise in a variety of personal injury claim types. Understanding how these practices appear in different scenarios can help victims recognize when their claim is being mishandled and take appropriate action. 
Car Accident Bad Faith Claims
Car accident claims make up a large share of personal injury cases in Pennsylvania, and insurers frequently look for ways to limit payment once injuries require ongoing medical care. One common issue is refusing to cover medical treatment or rehabilitation, even when the policy clearly provides coverage for those expenses.
Insurers may also delay Personal Injury Protection payments, knowing these benefits are meant to cover immediate medical costs and lost income. When payments are slowed without a valid reason, injured people can struggle to keep up with bills while still recovering.
Uninsured and underinsured motorist claims often turn into bad faith disputes when insurers treat their own policyholder like the opposing party. Instead of paying UM/UIM benefits once coverage is triggered, the insurer may minimize injuries or delay the claim to reduce its exposure.
Truck Accident Bad Faith Claims
Because truck accidents frequently result in serious injuries and extended recovery periods, insurers have strong financial incentives to limit payouts. Even with clear fault and documented injuries, they may dispute treatment plans, question future care needs, or claim the medical records do not support the level of harm reported.
Delays are also common in truck accident claims. Insurers may stretch out negotiations, request repeated documentation, or change adjusters mid-claim to slow progress. By dragging out the process, the insurer increases financial pressure on the injured person, hoping they will accept less than the claim is worth.
When injuries are permanent, insurance companies may pay only for treatment that has already happened. Costs for future medical care, home help, or the inability to return to work are often ignored, even though the crash caused these losses.
Traumatic Brain Injury and Concussion Claim Denials
Traumatic brain injuries and concussions are frequently mishandled by insurance companies because symptoms are not always visible on standard imaging. Insurers may argue that headaches, memory problems, or concentration issues are unrelated to the accident, even when neurologists and treating physicians link them to the injury.
Insurance companies may also minimize the need for long-term care. Cognitive therapy, occupational therapy, and ongoing neurological treatment are often discounted or excluded from settlement evaluations. In some cases, insurers delay approving evaluations or repeatedly request updated records to avoid addressing the full impact of the brain injury.
These tactics can leave injured people without access to the care they need while the insurer avoids paying the true cost of the injury.
Wrongful Death and Catastrophic Injury Bad Faith
When a crash causes a death or permanent injury, families often face long-term financial strain. Insurance companies may make offers that cover only short-term costs and leave out future income, the daily support the person provides, and ongoing care needs.
Insurers may also delay resolution by disputing damages that are clearly supported by records and expert opinions. These delays can place families under extreme financial pressure, particularly when they are already dealing with medical bills, funeral costs, or the loss of a primary income source.
In these cases, firm legal action is often necessary to force the insurer to evaluate the claim honestly and pay the compensation required under Pennsylvania law.
What to Do If You Suspect Bad Faith in Your Injury Claim
Taking the right steps early on in your injury claim can protect your legal rights. If you suspect bad faith:
- Request written reasons for any denial
- Keep all correspondence with the insurer
- Gather complete medical records
- Avoid giving recorded statements without counsel
- Contact a Pennsylvania bad faith insurance lawyer
Prompt action increases the likelihood of recovering full policy benefits and additional damages.
How a Pennsylvania Bad Faith Attorney Can Help You
Munley Law’s Pennsylvania bad faith insurance lawyers help injured people when an insurance company fails to handle a personal injury claim fairly. This includes reviewing how the claim was handled, identifying improper conduct, and taking action to recover compensation beyond the policy when the law allows.
Reviewing Your Policy and Identifying Violations
We start by reviewing your insurance policy to understand exactly what coverage applies to your injury. We then compare those obligations with the insurer’s handling of the claim, including payment decisions, delays, and reasons for denial. This step helps determine whether the insurer simply failed to pay or acted in violation of Pennsylvania bad faith law.
Demanding Fair Evaluation of Medical Evidence
Insurance companies often minimize or ignore medical records that support serious injury claims. We ensure that treating physicians’ opinions, diagnostic testing, and long-term care recommendations are properly considered. When insurers misstate or disregard this evidence, we document those failures and hold them accountable.
Negotiating With the Insurance Company
Before litigation, we push insurers to correct improper claim handling. This includes challenging unreasonable delays, unsupported denials, and settlement offers that do not reflect the full scope of the injury. Many bad faith issues are exposed during this stage, especially when insurers cannot justify their decisions with facts or policy language.
Filing a Bad Faith Lawsuit When Necessary
If negotiations fail, we determine whether the insurer’s conduct supports a breach of contract claim, a bad faith action, or both.
A breach of contract occurs when an insurer fails to pay benefits owed under the policy. These claims focus on what the policy requires and seek payment of the benefits that should have been provided.
A bad faith action, governed by 42 Pa.C.S. § 8371, goes further. It applies when an insurer knowingly acts unfairly, delays payment without reason, misrepresents coverage, or puts its own financial interests ahead of the policyholder. In these cases, Pennsylvania law allows recovery beyond the policy itself, including attorney fees, interest, court costs, and punitive damages meant to punish misconduct.
Understanding this distinction matters because not every unpaid claim qualifies as bad faith—but when it does, the potential recovery is significantly greater.
Protecting Your Right to UM/UIM Coverage
Uninsured and underinsured motorist claims often involve both contract and bad faith issues. We ensure insurers honor UM/UIM coverage once it is triggered and do not use delay, denial, or injury minimization tactics to avoid payment. When insurers mishandle these claims, we pursue the appropriate legal action to enforce coverage and hold them accountable.
What You Can Recover in a Pennsylvania Bad Faith Insurance Case
In addition to the policy amount, a PA bad faith claim may recover:
- Amount owed under the policy
- Attorney fees
- Interest on delayed payments
- Court costs
- Punitive damages (permitted under PA law)
These remedies make Pennsylvania one of the few states where insurers can be held fully accountable for misconduct.
How Long Do Bad Faith Insurance Claims Take in Pennsylvania?
The length of a bad faith insurance claim in Pennsylvania depends largely on the complexity of the case. Simple claims that involve straightforward negotiations can often be resolved within a matter of weeks or a few months, particularly when the insurer acknowledges the validity of the injury and the policy coverage.
More complex cases, such as catastrophic injury claims, UM/UIM disputes, or disputed liability, may require litigation, which can extend the process for several months or even years. At Munley Law, we actively manage every step of your claim to prevent unnecessary delays, ensuring your case moves efficiently while holding the insurer accountable for any tactics intended to slow or reduce your recovery.
Why Injured People in Pennsylvania Choose Our Firm
Munley Law is the preferred choice of Pennsylvanians for numerous reasons, including:
- Triple Board Certified trial lawyers
- Top 10 Super Lawyers in Pennsylvania
- Record-setting injury verdicts
- Decades of experience in insurer bad faith litigation
- Experts in catastrophic injuries and UM/UIM disputes
- No upfront costs; no fee unless you win
- Local, trial-tested counsel in Pennsylvania courts
Talk To a Personal Injury Attorney Now
Schedule a Free Consultation With a Pennsylvania Bad Faith Insurance Lawyer
Get a free, confidential case review to find out whether your personal injury claim is being handled in bad faith. You can speak with a Pennsylvania bad faith insurance lawyer by phone, chat, or online form – whatever is easiest for you.
At Munley Law, we charge no upfront costs, and there are no obligations. You pay nothing unless we recover compensation on your behalf. Contact us today.
Daniel W. Munley
Daniel W. Munley is an award-winning personal-injury attorney and champion of plaintiffs’ rights. For decades he’s won multi-million verdicts and settlements and is recognized as a national leader in truck and rideshare litigation,including a record $26 million truck settlement in Northeastern Pennsylvania and a $20 million recovery in 2024 for life-altering commercial-vehicle injuries.
