Bad faith
An insurer's unreasonable handling of a claim it owes a duty of good faith on.
It is a separate wrong from the underlying claim, and it applies mainly to your own insurer rather than the other side's. This is general information, not legal advice.
What it means
Every insurance policy carries an implied covenant of good faith and fair dealing. An insurer that unreasonably delays, unreasonably denies, or fails to investigate properly can be liable for breaching it, beyond simply paying what the policy owed.
The duty runs to the insured. That is why bad faith comes up in uninsured and underinsured motorist claims and in first-party coverage disputes, and much less often against the other driver's carrier.
This site does not describe the elements or the available remedies in detail, because a bad faith claim is its own case with its own law. If your own insurer is behaving unreasonably, that is a conversation to have with a lawyer rather than a page.
Where this is dealt with properly
This entry is the short answer. These pages own the subject.
Common questions
- Can I sue the other driver's insurer for treating me badly?
- Generally not directly. The duty of good faith is owed to the insurer's own policyholder. Your leverage against the other side's carrier is the underlying claim itself.
Start a case review call
On a case review call, I go through the facts with you: what happened, when, whether you were hurt, whether anyone represents you, and how to reach you. It is not legal advice, and I will not put a value on your claim.
Sources: Gruenberg v. Aetna Ins. Co. (1973) 9 Cal.3d 566 (the insurer must act fairly and in good faith in discharging its contractual responsibilities; refusing without proper cause to pay a covered loss may give rise to a claim in tort); Egan v. Mutual of Omaha Ins. Co. (1979) 24 Cal.3d 809 (an insurer cannot reasonably and in good faith deny payment without thoroughly investigating the foundation for its denial, and must give at least as much consideration to the insured's interests as to its own); CACI No. 2331, Judicial Council of California Civil Jury Instructions (2026 edition) (Breach of the Implied Obligation of Good Faith and Fair Dealing—Failure or Delay in Payment (First Party)—Essential Factual Elements, Judicial Council of California Civil Jury Instructions (2026 edition)); CACI No. 2332 (Bad Faith (First Party)—Failure to Properly Investigate Claim—Essential Factual Elements). CACI references after the first use the short form.