Dealing with an accident or other legal matter is usually difficult enough, let alone if the insurance company treats you unfairly. Insurance bad faith can be committed when an insurance company unreasonably refuses coverage of an otherwise legitimate claim. If your insurance company refuses to honor its contract with you, denies payment on a valid claim, or unfairly cancels your contract, you do have legal rights. You have the right to appeal the insurance company’s decision and you may be able to sue the insurance company for bad faith and breach of contract. Generally, insurance carriers have a duty of good faith and fair dealing when it comes to dealing with their insureds. Each state has an agency dedicated to regulating insurance companies, sometimes called the state department of insurance, division of insurance, office of insurance, or similar. If your insurance company didn’t honor your policy or has acted unreasonably or unfairly, you can ultimately make a complaint with your state agency.