Bad Faith by Insurance Companies After a Motorcycle Accident or Wrongful Death in California

When the Insurance Company Stops Playing by the Rules

Most people think insurance exists to protect them.
We pay our premiums every month, trusting that if something terrible happens, the insurance company will step up and help.

But if you’ve been through a serious motorcycle crash — or lost someone you love — you already know the truth:

Insurance companies protect themselves first.

And sometimes, they don’t just drag their feet or offer too little.
Sometimes, they act in bad faith — deliberately breaking the rules, ignoring their legal obligations, and hurting riders and families when they’re already vulnerable.

At McCarthy Motorcycle Law, we see this all the time. Riders call us after months of waiting, fighting, begging for answers — only to realize the insurer never intended to treat them fairly in the first place.

This guide explains what bad faith is, how to spot it, and what you can do if an insurance company refuses to deal honestly after a motorcycle injury or wrongful death in California.

What Is Insurance Bad Faith?

Under California law, insurers have a legal duty to:

  • Act fairly

  • Investigate claims promptly

  • Pay valid claims

  • Not misrepresent policy terms

  • Not stall or ignore communication

  • Not pressure you into unfair settlements

  • Not look for excuses to deny legitimate claims

When an insurer violates that duty — intentionally or recklessly — they’re acting in bad faith.

This applies to:

  • The other driver’s insurance company

  • Your own insurance company (important in UM/UIM claims)

  • Commercial insurers (trucking companies, delivery services, fleet vehicles)

  • Insurance companies involved in wrongful death settlements

Bad faith isn’t just unethical — it’s illegal.
California allows riders and families to sue insurers that break the rules and recover much more than the value of the original claim, including punitive damages in some cases.

Why Riders Experience Bad Faith More Than Most

Insurance companies treat motorcycle claims differently — and not in a good way.

Motorcycle crashes:

  • Cost more

  • Cause more severe injuries

  • Lead to more lost wages

  • Require more medical care

  • Are more likely to involve long-term disabilities

When insurers see a motorcycle claim, they see a high-value payout — and they start looking for ways to minimize or deny it. Some adjusters will even admit, off the record, that large motorcycle claims are flagged internally because they “threaten reserves.”

That pressure leads to shortcuts, stalling, manipulation, and ultimately — bad faith conduct.

Common Examples of Insurance Bad Faith in Motorcycle Cases

Insurance companies have dozens of tricks, but bad faith goes beyond “annoying” or “unfair” and crosses into illegalterritory.

Here’s what to watch for:

1. Unreasonable Delays

If the insurer keeps stalling — asking for the same documents over and over, ignoring your calls, or taking months to respond — they may be acting in bad faith.

California requires insurers to:

  • Respond to claims promptly

  • Make decisions within a reasonable time

  • Communicate clearly about delays

Delays are often intentional. They’re meant to exhaust you financially and emotionally so you’ll accept a lower settlement.

2. Denying Claims Without a Valid Reason

A flat denial, with no meaningful explanation, is a classic sign of bad faith.

Examples include:

  • Denying liability despite clear evidence

  • Claiming the rider “was at fault” without investigation

  • Rejecting medical treatment as “unnecessary”

  • Calling injuries “pre-existing” with no proof

  • Refusing to cover UM/UIM claims without basis

A denial must be based on a real legal or factual reason — not a hunch, stereotype, or budget.

3. Misrepresenting Policy Terms

This happens more than people realize.

Insurers sometimes lie about:

  • Your coverage limits

  • What injuries the policy covers

  • Whether UM/UIM applies

  • Exclusions that don’t actually exist

  • What documentation is required

If they quote policy language but won’t show you the full policy, that’s bad faith.

4. Failing to Conduct a Full Investigation

Insurers must actually investigate your claim — not just skim the police report.

Bad faith investigations include:

  • Ignoring witness statements

  • Refusing to inspect the bike

  • Failing to interview key people

  • Rejecting medical evidence without review

  • Not requesting available records

  • Relying solely on biased internal "medical reviewers"

When insurers decide the outcome before gathering facts, that’s illegal.

5. Lowballing With “Take It or Leave It” Offers

Offering pennies on the dollar with no explanation — and pressuring you to accept — is a form of bad faith negotiation.

Especially in:

  • Catastrophic injury cases

  • Wrongful death cases

  • Cases involving permanent disability

  • UM/UIM claims

We routinely see offers that don’t even cover a rider’s hospital bills. That’s not negotiation — that’s exploitation.

6. Blaming the Rider Without Evidence

This includes:

  • Claiming you were speeding without proof

  • Citing lane splitting (legal in California) as negligence

  • Suggesting you "could have avoided the crash"

  • Misinterpreting helmet or gear damage

  • Using bias against motorcyclists as a weapon

When an insurer blames the rider as a default strategy, not based on facts, that’s bad faith.

7. Failing to Settle Within Policy Limits When They Should

This one is huge — and powerful.

When liability is clear and damages exceed policy limits, the insurer has a legal duty to settle within limits to protect their insured (the at-fault driver).

If they refuse and the case goes to trial, the insurer may owe the entire verdict — even if it’s millions more than the policy.

This is one of the biggest leverage points in motorcycle litigation.

8. Cutting Off Medical Treatment Early

When insurers refuse to authorize needed treatment — or force you back to work before you're ready — that’s a breach of their duty to act reasonably.

9. Forcing Unnecessary Arbitration or Litigation

Sometimes insurers intentionally drag you into arbitration or court to increase costs, delay payment, or intimidate you into dropping the claim.

This happens often in UM/UIM cases.

10. Spying, Social Media Monitoring, or Intimidation

Insurers sometimes cross ethical lines — hiring investigators to follow riders, or mining private social media context to misrepresent your condition.

How Insurance Bad Faith Affects Wrongful Death Cases

When a family loses a loved one in a motorcycle crash, insurers often get even more aggressive — trying to minimize the loss or imply the rider “caused their own death.”

Bad faith can appear through:

  • Delays in paying death benefits

  • Denials based on false assumptions

  • Refusing to cover funeral costs

  • Misclassifying the claim

  • Lowballing a grieving family

  • Forcing families to repeatedly relive trauma

Families facing wrongful death deserve compassion — not corporate stonewalling.
We step in immediately to take that burden off them.

What You Can Recover in a Bad-Faith Lawsuit

If an insurer acts in bad faith, you can pursue damages far beyond the value of the original claim, including:

  • The full value of your claim

  • Emotional distress damages

  • Attorney’s fees

  • Punitive damages (in egregious cases)

Punitive damages can be substantial — designed to punish and deter misconduct.

In some motorcycle wrongful death cases, bad-faith actions have led to seven-figure verdicts well above policy limits.

How McCarthy Motorcycle Law Fights Insurance Bad Faith

We know the tricks. We know the tactics.
And we know how to shut them down.

Here's how we protect riders and families:

1. We Document Every Violation

Emails, delays, misrepresentations — we build a paper trail.

2. We Demand Full Disclosure

When insurers misstate policy language, we call them out immediately.

3. We Push Back Against Lowball Offers

We know the value of motorcycle injury and wrongful death cases — and we refuse to let insurers take advantage.

4. We Hold Insurers Accountable in Court

If bad faith continues, we file suit.
And insurers know we prepare every case like it’s going to trial.

5. We Fight Bias With Expertise

Our knowledge of riding, visibility, physics, and motorcycle culture allows us to expose unfair assumptions and force insurers to confront real evidence.

6. We Give You Peace of Mind

You won’t have to talk to adjusters again.
You won’t have to worry about deadlines.
You won’t have to fight this battle alone.

What to Do If You Suspect Bad Faith

  1. Document everything.
    Save letters, emails, call logs, and adjuster names.

  2. Don’t give recorded statements.
    Direct the insurer to your lawyer.

  3. Don’t trust verbal promises.
    Get everything in writing.

  4. Don’t accept a low settlement out of desperation.
    Talk to a motorcycle lawyer first.

  5. Reach out early.
    Bad faith gets worse with time — but also easier to prove if you act quickly.

Why Riders Across California Choose Us

Because we care about riders, we fight for riders, and we’ve built a whole firm around protecting riders.

  • Built by riders, for riders

  • Millions recovered for injured riders and grieving families

  • Direct access to attorney John McCarthy

  • Technology-driven and trial-ready

  • Compassionate, clear communication

Insurance companies try to bully riders.
We don’t let them.

Get Help Today — Before the Insurer Does More Damage

If you think an insurance company is acting in bad faith — delaying, denying, deceiving, or lowballing — reach out now.

Our free case evaluations go straight to our inbox, not a call center.
We respond quickly, explain your rights, and tell you honestly what you’re facing.

Because you deserve better than insurance games.
You deserve truth. You deserve fairness.
And as California’s Motorcycle Law Firm — we’re here to fight for it.