The insurance company is also obligated to act in "good faith." This means that if you have property damage coverage, your own insurance company must be prompt, fair, and reasonable in your property damage claim. However, there is a duty to cooperate and also act in good faith with your own insurance company. This means timely filing of claim, communicating with your insurance company as to the location of your motorcycle, giving a recorded statement if necessary to establish liability, and doing any other activity required by your insurance company to assist them in expediting the resolution of your motorcycle property damage claim.
If your own insurance company fails to act in a prompt, fair, and reasonable action, you may have a separate cause of action for what is called "bad faith." This means that the company has failed to affirm or deny insurance coverage or failed to act promptly with your property damage or injury claim. If weeks or months have gone by and you have not had your property damage claim resolved by your own insurance company, you should contact a competent motorcycle lawyer to assist you in expediting your property damage claim and investigating whether there is any bad faith actions on behalf of your insurance company.
Furthermore, your own insurance company must provide the fair market value for your motorcycle and all of your losses to make you "whole" again. This is to quote one insurance company "put you back to where you were before."
Sometimes, your own insurance company may fail to timely affirm or deny insurance coverage, delay in the processing of your property damage, bodily injury, or medical payment claim, or flat out deny coverage altogether.
Under California law, there is something called First Party Bad Faith, whereby the California Insurance Code 790.03(h) codifies the actions that are considered unfair claims practices.
Even though most insurance companies act in good faith and do their best to provide prompt, fair and reasonable processing of claims, sometimes, they do not and they are slow to confirm coverage or pay on your claim. Rarely, but at times, they fail to pay on a claim entirely, which may be grounds for a separate cause of action or lawsuit for bad faith.
You, as an insured, are required to pay your premiums on time or else your insurance policy is cancelled. Now, when you are involved in an accident, and fully cooperate with your insurance company, they delay, and delay, and delay, and finally deny your claim. As a result, you may suffer additional damages in addition to the motorcycle accident, which include loss of income, loss of your business, or worse yet, bankruptcy because you cannot return to work and your claims have not been timely paid. Under California law, if there are facts sufficient to support cause of actions for unfair claims practice, you may be entitled to compensation for both your financial and emotional harm caused by the insurance company?s action, or for that matter inactions.
If your own insurance company has failed to pay on your claim, or denying your claim, you should contact a California motorcycle accident attorney to discuss how to expedite payment on your claim.
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