Orange County Bad Faith Insurance Attorney

Since 1979, the Orange County bad faith insurance claim lawyers at DiMarco | Araujo | Montevideo have helped policyholders and victims stand up to insurance companies that fail to honor their contractual and legal obligations. 

Whether you’ve been injured in an accident, had property stolen or damaged, or suffered a loss, it’s painful enough without your insurer acting in bad faith by denying or delaying your rightful benefits.

Insurance companies owe their claimants a duty of good faith and fair dealing, meaning they must evaluate and pay claims fairly, promptly, and fully. Unfortunately, insurers often violate this duty to reduce their liability or avoid paying valid claims altogether.

For over 40 years, our firm has fought back against these unfair practices and successfully secured full compensation for our clients. Call today to schedule your free consultation and learn how we can help.

What Is “Bad Faith” in Insurance Claims?

“Bad faith” occurs when an insurance company breaches the implied covenant of good faith and fair dealing it owes to its policyholders. This legal duty requires insurers to act honestly and fairly when handling claims, regardless of their own financial interests.

There are two primary types of bad faith claims:

• First-party bad faith arises when your own insurer wrongfully denies or delays payment of your valid claim, such as for property damage, personal injury, or disability benefits.
• Third-party bad faith involves the insurer failing to properly defend or settle claims made against you by others, often related to liability coverage after accidents where fault is disputed.
  

Both types of bad faith claims can lead to complex litigation, where injured victims and claimants seek compensation not only for damages but also for the insurer’s breach of duty.

How Insurance Companies Violate the Duty of Good Faith

Despite their responsibility to policyholders, many insurers engage in practices that violate their duty of good faith, such as:

• Unwarranted denial of claims or coverage
• Failing to conduct a reasonable and timely investigation
• Lowballing settlement offers well below the actual value of claims
• Ignoring or delaying responses to claims and settlement demands
• Denying claims for reasons not found in the policy language
• Refusing to negotiate or settle when liability is clear
• Concealing policy limits or relevant coverage information
• Failing to pay temporary or permanent disability benefits owed under a policy
  

If you are a claimant facing any of these tactics, our experienced insurance bad faith attorneys will aggressively pursue the compensation and justice you deserve.

How to File an Insurance Bad Faith Claim in California

California law protects policyholders by recognizing both contract-based and tort-based bad faith claims. You may bring a lawsuit against your insurer for failing to honor their duty of good faith and properly pay your claim.

Our Orange County team will guide you through every step of the litigation process, including:

• Assessing your insurance policy, claim history, and denial reasons
• Advising on whether you may pursue first-party or third-party bad faith claims
• Explaining the legal requirements and potential damages, including medical treatment, bodily injury, loss of earnings, disability benefits, and other special and general damages
• Handling pleadings, discovery, expert witness depositions, and motions
• Negotiating settlements or preparing for trial when necessary
  

We also help clients understand the role of the California Department of Insurance (DOI) and other regulatory agencies, though private lawsuits often yield more substantial recoveries.

What is the Statute of Limitations for Bad Faith Claims?

It is critical to act quickly, as there are strict time limits on bad faith claims:

• Contract-based bad faith claims generally have a 4-year statute of limitations
• Tort-based bad faith claims must typically be filed within 2 years
  

Delaying your claim investigation or lawsuit can jeopardize your ability to recover. Contact us promptly to ensure your rights are protected.

Appealing a Denied Insurance Claim

If your insurer has denied your claim, you have the right to appeal the decision. However, appeals require careful preparation, including:

• Reviewing your insurance policy’s appeal procedures and deadlines
• Gathering supporting evidence for your claim
• Submitting a compelling appeal or pursuing legal action if necessary
  

A skilled Orange County bad faith insurance lawyer from our firm can help you evaluate whether to negotiate directly or proceed with litigation.

Bad Faith in Car Accident Claims and Liability Disputes

Bad faith insurance claims frequently arise from car accident claims. 

Whether you file a claim with your own insurer under collision or uninsured/underinsured motorist coverage, or pursue compensation from the at-fault driver’s liability insurance, insurers may unfairly dispute fault, undervalue injuries, delay payments, or outright deny claims.

If you are a victim of such conduct, our personal injury lawyers have extensive experience protecting your rights and maximizing the compensation you deserve.

When Insurers Refuse to Settle Within Policy Limits

In third-party bad faith cases, insurers owe a duty to settle claims within policy limits to protect their insured from excessive verdicts. When they recklessly refuse to settle, exposing the policyholder to personal liability above coverage limits, they can be held liable for the entire judgment.

If your case involves such an issue, immediate legal assistance is essential.

Bad Faith in Uninsured & Underinsured Motorist Claims

Uninsured motorist (UM) and underinsured motorist (UIM) claims are common sources of bad faith. With many drivers uninsured, UM/UIM coverage protects you, but insurers often deny or delay these claims to save money. Knowing your coverage limits and rights is critical.

Disability Insurance Bad Faith

Insurance companies that deny or delay short-term or long-term disability benefits may be acting in bad faith. We represent clients in disputes over disability claims, ensuring that injured workers and policyholders receive the income and medical benefits they are entitled to.

How Discovery Helps You Fight Back

Discovery is a critical part of bad faith litigation that helps expose insurance company misconduct. During discovery, we obtain:

• Internal claim files and communications
  
• Adjuster notes and claim handling manuals
• Medical records, financial documents, and expert reports
  

Our knowledgeable bad faith attorneys use this evidence to prove insurer bad faith and pursue full damages for our clients.

Why Choose Our Orange County Bad Faith Lawyers?

We understand the frustration victims and policyholders face when insurance companies betray their trust.

Since 1979, our dedicated Orange County lawyers have fought tirelessly to hold insurers accountable and recover the benefits and damages our clients deserve.

• Free initial consultations
• No fees unless we win your case
• Spanish-speaking attorneys available
• Flexible meeting locations, including your home or hospital
  

Call us any time at (714) 783-2205 for your free consultation with an experienced Orange County bad faith insurance lawyer.

What Our Clients Have to Say

“Amazing from start to finish. Always in contact with us, checking in with us, and making sure things were on track.” -L. P.

“Best firm I’ve ever used. They helped me through my case and I was completely satasfied.” -T. F.