Parts were stolen, swapped or installed on my car at insurance referral body shop without my knowledge or consent..

Can I use for bad faith if insurance
failed to properly and thoroughly
investigate my claim of theft As well as
deny claim outright even though
liability is clear?

Asked on September 17, 2018 under Insurance Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Yes, you can sue them for both breach of contract (not paying when, under the terms of the policy and the facts, they should have paid) and for breach of the "implied covenant of good faith and fair dealing" (different states may use different terms for this, which is the requirement, imposed on all parties to contracts (insurance policies are contracts) that they deal fairly with the other side and do not intentionally act in a way that would destroy the value of the contract/policy to the other. You would need to prove in court that the facts, as applied to the terms of your policy, show that the insurer should have honored the claim.


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