my insurance and its preferred repair shop has broken many CA laws , can i sue for bad faith if insurance denied claim without investigating and even tried to cover up illegal acts by them and its repair shop?

crash parts were installed on my car without my knowledge or consent by a auto body shop that my insurance referred me to and subsequently rendered my car useless.

Asked on September 13, 2018 under Insurance Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Your question essentially answers itself: if an insurer tries to cover up illegal acts and will not even investigate its claim, it is not acting in good faith in regards to the other party (you) to the contract (the insurance policy you took out; insurance policies are contracts). The law imposes a duty of "good faith and fair dealing" on all parties to contract--this is what it sounds like, an obligation to act in good faith in regards to the other party, and not do things or take steps which would deprive the other party of the "benefit of the bargain" or contract. What you describe, if true, would be a breach of this implied (added by law) covenant of good faith and fair dealing, and so would allow you to sue on that basis.


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