Filing an Insurance Bad Faith Claim After an Accident in California

California law requires insurance companies to act in good faith when handling your personal injury, auto, or property damage claims. Unfortunately, insurers sometimes put their profits first, using delay tactics, unreasonable denials, or lowball offers—even when you have a legitimate claim.

What Is Insurance Bad Faith?

Bad faith occurs when an insurance company:

• Unreasonably denies a valid claim
• Delays payment or investigation without justification
• Fails to communicate important information or deadlines
• Refuses to negotiate or settle in good faith
• Misrepresents coverage or policy terms

Victims can pursue a separate lawsuit against the insurer for additional damages—often far greater than the original claim.

Common Scenarios

• A driver’s insurance company refuses to pay for clear liability in a car accident
• An injured person’s medical bills are denied despite clear policy coverage
• A home or business owner’s legitimate property damage claim is delayed or minimized

Legal Remedies

If you win a bad faith case, you may be entitled to:

• The original amount owed under your policy
• Interest on delayed payments
• Emotional distress damages
• Attorney fees and litigation costs
• Punitive damages (in egregious cases)

How an Attorney Helps

Bad faith claims are complex and require evidence of improper insurer conduct. Michael Madadi and BD&J, PC can:

• Review correspondence and policy documents
• Build a timeline showing unreasonable delay or denial
• Negotiate forcefully with insurers
• Take your case to trial if necessary

Frequently Asked Questions

Can I file a bad faith claim if the insurer is from another state?
Yes—if the policyholder or the loss is in California, California law may apply.

What if my claim is still pending?
Consult an attorney before accepting any settlement; sometimes bad faith becomes clear only after reviewing the entire claims process.