Traffic accident attorneys in Nebraska understand that recovering after a crash involves more than healing from physical injuries—it often means taking on insurance companies that don’t always treat victims fairly. While Nebraska law requires insurers to act in good faith when handling claims, the reality is that many crash victims face unnecessary delays, unfair denials, or settlement offers that fall far short of covering medical bills and lost income.
Each year, the Nebraska Department of Insurance receives hundreds of complaints about how insurers handle auto accident claims. For victims in Lincoln, Omaha, and across the state, these issues aren’t just frustrating—they can create serious financial stress during a time when families are already struggling to recover.
That’s why understanding insurance bad faith is so important. If an insurance company fails to meet its legal obligations, victims have rights—and traffic accident attorneys play a key role in holding insurers accountable. In this article, we’ll explain what “bad faith” means under Nebraska law, share common tactics insurers use, and provide practical guidance on how crash victims can protect themselves.
Nebraska is an at-fault state for car accidents. This means the driver responsible for the crash—and their insurance company—must cover the damages. But what happens when the insurance company fails to uphold its legal duty?
When insurers act dishonestly or unfairly, it’s called bad faith. Common bad faith practices include:
Unreasonable delays in processing claims
Denying claims without a valid explanation
Lowballing victims with settlement offers far below actual costs
Refusing to cover documented medical expenses
Misrepresenting policy coverage to avoid paying
For an injured person, these tactics can be devastating. Imagine being unable to work after a serious crash in Lincoln, while your hospital bills keep piling up because the insurance company is “still reviewing” your claim. This is exactly where accident car lawyers in Lincoln, NE step in to protect victims.
Insurance companies are legally obligated to act in good faith—which means investigating claims fairly, communicating promptly, and paying valid claims within a reasonable timeframe.
When they fail to meet those obligations, they may be guilty of insurance bad faith. Under Nebraska law, victims can file lawsuits against insurers that engage in these unfair practices.
Real-World Example
Suppose you’re rear-ended on O Street in Lincoln. The at-fault driver admits liability, and the police report confirms it. You submit a claim for your medical expenses, but the insurance company denies payment, claiming your injuries were “pre-existing.”
In this case, a Lincoln car accident attorney could gather medical evidence, challenge the denial, and file a bad faith complaint if the insurer refuses to act fairly.
Nebraska crash victims often notice the same patterns of misconduct when dealing with insurers:
Unreasonable Denials – Refusing to pay even when liability is clear.
Excessive Delays – Dragging out the process to pressure victims into giving up.
Low Settlement Offers – Offering pennies on the dollar compared to actual damages.
Failure to Defend Policyholders – Leaving drivers personally exposed when lawsuits arise.
When these issues occur, vehicle accident lawyers in Lincoln and Omaha can step in to protect victims’ rights.
Many crash victims hesitate to take action because of common misconceptions. Let’s clear a few up:
Myth 1: Insurance companies always act in your best interest.
Reality: Their goal is to protect profits—not necessarily to treat victims fairly.
Myth 2: Filing a bad faith claim means suing your own insurer.
Reality: Sometimes it does, but often the claim is against the at-fault driver’s insurer.
Myth 3: Small claims aren’t worth pursuing.
Reality: Even “minor” accidents can cause lasting injuries. A Lincoln auto accident lawyer can help ensure you aren’t shortchanged.
If you suspect insurance bad faith after a crash in Nebraska, here’s what you should do:
Document Everything – Save all emails, letters, texts, and call logs with the insurer.
Track Medical Bills – Keep receipts, treatment notes, and test results.
Note Delays – Record dates of unanswered calls or delayed responses.
Consult an Attorney Early – Search for a traffic accident lawyer near you in Lincoln or Omaha before the problem escalates.
Remember: Nebraska law gives you four years to file a personal injury claim and five years for contract disputes. Waiting only benefits the insurance company.
Several state laws and legal principles play a role in bad faith insurance cases:
Comparative Negligence Rule – If you’re partly at fault, your recovery may be reduced but not eliminated.
Wrongful Death Claims – Families may hold insurers accountable after fatal crashes.
Nebraska’s Unfair Claims Settlement Practices Act – This law prohibits insurers from misrepresenting coverage, ignoring valid claims, or forcing victims into unnecessary litigation.
These rules show why working with a wrongful death attorney in Lincoln, NE or a Nebraska accident lawyer is essential when navigating complex claims.
Experienced personal injury attorneys in Lincoln and Omaha know how to build a strong case against an insurer acting in bad faith. Strategies may include:
Comparing settlement offers to documented medical expenses and wage losses.
Using expert testimony to expose unreasonable delays.
Obtaining internal insurance communications that reveal unfair practices.
If bad faith is proven, victims may recover:
The value of the original policy benefits
Punitive damages (to punish the insurer)
Attorney’s fees and court costs
This is why partnering with seasoned attorneys for car wrecks in Nebraska can make all the difference in securing justice.
At Inkelaar Law, we’ve spent decades helping Nebraska families stand up to powerful insurance companies. With offices in both Lincoln and Omaha, our team of Nebraska traffic accident attorneys has deep experience with:
Car, truck, and motorcycle accidents
Wrongful death claims
Insurance bad faith lawsuits
We offer free consultations and work on a contingency fee basis—meaning you don’t pay us unless we win your case.
If you believe your insurer is stalling, underpaying, or wrongfully denying your claim, don’t face them alone. The traffic accident attorneys at Inkelaar Law are ready to fight for your rights and help you secure the compensation you deserve.
Call 1-833-INK-WINS today or book a free consultation online. We proudly serve clients in Lincoln, Omaha, and across Nebraska.
Disclaimer: The information contained in this article is for general educational purposes only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation. For specific legal advice, please consult with an attorney who is qualified to handle your case.
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