When to Take Your Auto Insurance Company to Court in 2024 (+Case Studies)
It's best to take your auto insurance company to court if you have evidence they wrongly denied your claim. Since 95% of bodily injury cases get settled out of court, you'll have good odds when suing your car insurance company. Below, we'll explain the process of suing a car insurance company for denying a claim.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
UPDATED: Aug 9, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Aug 9, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
If you have proof that your car insurance company unjustly denied your claim, you might consider filing a lawsuit against the car insurance company. It is essential to consult with a lawyer to help you navigate your car insurance claim going to court and the associated legal complexities.
Read more: How to File an Auto Insurance Claim
So the answer to “Can I sue my car insurance company?” is yes. Below, we’ll explain how to sue your car insurance company, the process of suing a car insurance company for denying your claim, and whether you can sue an insurance company for taking too long with your claim. Enter your ZIP code into our free quote comparison tool above if you’re looking for another insurer.
- You can sue your insurer if it wrongfully denies your claim
- Get advice from an insurance lawyer before you decide to sue
- 95% of bodily injury cases get settled out of court
When to Sue Your Auto Insurance Company for Claim Denial
An insurance company has an obligation to its policyholders. The insurance company must abide by the terms of your contract, avoid unfair practices, and act in good faith. Your insurer is legally bound to pay for the damages suffered by you. The payout will depend on your type of auto insurance coverage.
These obligations mean that the best auto insurance companies should refrain from doing the following things:
- Launch an inadequate and delayed investigation
- Refusing to pay the claim amount even when the liability is clear
- Failing to act on the claim within a reasonable period (see our article How long can an insurance claim stay open?)
- Denying a claim without a valid reason
- Failing to defend the insured in a liability case even when one of the claims is potentially covered by liability auto insurance
A smart thing to do before you decide to sue is to fully understand your auto insurance policy when your claim is denied.
Read more: What to Do if Your Auto Insurance Company Won’t Pay a Claim
If you still believe that your claim was wrongly denied and your insurer isn’t ready to listen to you, you can look into suing your car insurance company. You can sue not only to recover damage suffered by your car but also for medical bills, liability, etc. Learn more about how a denied auto insurance claim will affect your rates.
How to Take an Insurance Company to Court
So what happens if you sue your own insurance company? If you decide to sue your insurer, it will be a civil suit. The exact course of action will depend on the state you’re in, as auto insurance laws are regulated by states.
In addition, there are various legal fees and court costs associated with suing an insurance company. Check out the map below to see how much it costs to sue an insurer:
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Winning in Court Against an Auto Insurance Company for Denying a Claim
You can sue your auto insurance company if it denies your claim.
Common grounds for suing an auto insurance company are not paying claims in a timely manner, denying properly filed claims, or denying claims in bad faith. In all these cases, you can take your insurance company to court.Jeffrey Johnson Insurance Lawyer
In every state, there are laws designed to safeguard consumers from insurers. It is not uncommon for auto insurance policyholders to take legal action against a car insurance company. However, it is crucial to understand that insurers have the right to reject certain claims. To win in court, you must demonstrate that your claim was wrongfully denied. This is part of the basic mandate of the insurance commission. Even under the strict no-fault liability rule, you should not lose the claim if you’re not at fault.
Suing a car insurance company for denying your claim can be costly. Before taking action, ensure you have a solid case and seek advice from an experienced lawyer for a legal opinion on the matter, especially when dealing with an SD casualty producer.
Read more: How to Get an Attorney Auto Insurance Discount
Tips to Sue an Auto Insurance Company
If you’re contemplating suing your auto insurance company, it is important to be prepared. Here are some tips on how to sue a car insurance company:
- Keep a record of all your correspondence with your insurance company.
- Maintain a record of your car’s condition. Take a picture of your car the day it was insured.
- Keep a record of all the expenses you incur. Preserve the repair bills, medical bills, lawyer’s fees, and lost time at work. Be honest in your record keeping.
- Choose an experienced lawyer who has a background in insurance litigation.
If you decide to hold your insurance company responsible for the accident and take them to court, avoid going alone. Make a compelling case involving non-accidental damage and no fault liability by hiring a lawyer to defend your interests.
More About How to Sue a Car Insurance Company for Claim Denial
Taking legal action against your car insurance company for denying a claim can be both costly and lengthy. This step shouldn’t be taken lightly and can often be avoided by selecting a reputable and trustworthy auto insurance provider that will properly manage your claims. Understanding the difference between no-fault vs liability, knowing how insurance works when it’s not your fault, and being aware of the impact on your no-claims after an accident are essential. Additionally, being mindful of the consequences of not paying excess can help you navigate the claims process more effectively.
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— AutoInsurance.org (@AutoInsurance) September 13, 2023
We hope we have given you a good preparation for how to sue your car insurance company. If you’re looking for other options for auto insurance, enter your ZIP code into our free auto insurance comparison tool to evaluate auto insurance quotes from the top providers near you.
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Frequently Asked Questions
When should I consider taking an auto insurance company to court?
You may consider taking an auto insurance company to court if you believe they have acted in bad faith, denied your valid claim without proper justification, or you have encountered unreasonable delays or unfair practices during the claims process.
What steps should I take before going to court with an auto insurance company?
Before going to court, it is important to exhaust all possible options for resolving the dispute outside of litigation. Start by communicating with the insurance company directly and documenting all interactions.
Consider filing a complaint with your state’s insurance department and consulting with an attorney specializing in insurance law. Learn more in our article How to File a Complaint Against Your Auto Insurance Company.
Should I hire a lawyer if I decide to sue my insurance company?
Yes, it is highly recommended to hire a lawyer if you decide to sue your insurance company. An experienced lawyer will guide you through the legal process, build a strong case, and communicate with the insurance company on your behalf. They will ensure your interests are properly represented and increase your chances of a successful outcome.
What should I do to prepare for suing my auto insurance company?
To get ready for suing auto insurance companies, maintain a comprehensive record of all your communications with them. Capture your vehicle’s condition with photographs and keep track of any costs you incur, such as repair bills, medical expenses, legal fees, and lost wages. Additionally, it’s essential to engage a skilled attorney with experience in insurance litigation to advocate for your case.
How can I sue my insurance company?
If you decide to pursue a lawsuit against a car insurance company, it will typically be a civil suit. The exact course of action will depend on the laws and regulations in your state. One common type of lawsuit is a breach of contract action, as insurance is a contractual agreement. It’s important to work with a lawyer who specializes in insurance litigation to navigate the legal process effectively.
Can I sue my auto insurance company for bad faith?
Yes, you can sue your auto insurance company for bad faith if they have acted dishonestly, unfairly, or unreasonably in handling your claim. Examples of bad faith include intentionally delaying claim processing, making unreasonable settlement offers, or denying a claim without a valid reason.
Is there a time limit for suing my auto insurance company?
Yes, there is a statute of limitations that sets a time limit for filing a lawsuit against your auto insurance company. The specific time frame varies by state, so it’s crucial to consult with a lawyer promptly to ensure you meet the deadline.
Can I sue my car insurance for underpayment of a claim?
Yes, you can sue your auto insurance company if they underpay your claim. If you believe that the settlement offered by the insurer is insufficient to cover your losses, you may choose to pursue legal action to seek the appropriate compensation.
What should I expect during the court process?
The court process can vary depending on your jurisdiction and the specific circumstances of your case. Generally, you can expect pre-trial procedures such as discovery, negotiations, and potentially mediation or arbitration.
If the case proceeds to trial, you will present your evidence, arguments, and witnesses before a judge or jury.
What factors can influence the outcome of the case?
The outcome of the case can be influenced by various factors, including the strength of your evidence, the expertise of your attorney, the applicable laws and regulations, the judge’s interpretation of the case, and the credibility of witnesses.
Can you sue your car insurance company?
You can sue your insurer for breach of contract if they are wrongfully denying your claim. Before you decide to sue your insurer, show your case to a lawyer and get their legal opinion and then decide if you want to sue or not.
If you decide to sue, engage an experienced lawyer and be truthful with them. Let them lead the communication with the insurance company and let the law take its course.
When you sue an auto insurance company, does the company want to go to court?
Generally, insurance companies settle most accident claims out of court to prevent paying a lot in legal expenses.
Can I sue my insurance company for emotional distress?
Your car insurance company could be held liable for emotional distress stemming from a denied claim or “bad faith” practices.
Do insurance companies want to settle quickly?
Most insurance companies want to resolve claims fast to avoid the cost of a lengthy trial.
Can you sue an insurance company for taking too long?
Yes, you have the right to pursue legal action against an insurance company that takes a long time to process your claim. Generally, this scenario would fall under the “bad faith” legal concept.
How often do insurance companies settle before deposition?
Studies estimate that 95% of bodily injury cases get settled before they head to trial.
Can I sue an insurance company for not fixing my car?
You might have grounds for legal action if your policy says the insurer must cover your vehicle repairs in certain cases but doesn’t. However, talk to your insurance company to find out why they didn’t fix your car.
How do I sue an insurance company?
To sue an insurance company, you typically need to follow these steps:
- Review Your Policy: Understand the terms of your insurance policy and why your claim was denied.
- Document Everything: Gather all relevant documents, including correspondence with the insurance company, policy details, and evidence supporting your claim.
- Consult an Attorney: Seek legal advice from an attorney who specializes in insurance law to assess the strength of your case and guide you through the process.
- File a Complaint: Consider filing a complaint with your state’s insurance regulatory agency before proceeding to court.
- Prepare for Litigation: If necessary, your attorney will help you file a lawsuit and prepare for court proceedings, including discovery and presenting evidence.
Can you sue your own auto insurance company?
Yes, you can sue your own auto insurance company if they have wrongfully denied your claim or acted in bad faith. It’s essential to review your policy and consult with an attorney to determine if you have a valid case and to guide you through the legal process.
Can I sue my car insurance company for emotional distress?
Yes, you can sue your car insurance company for emotional distress if you can demonstrate that their actions caused significant emotional suffering. This typically requires proving that the insurance company acted in bad faith or engaged in unreasonable behavior that directly resulted in emotional harm.
Can I sue my car insurance company for taking too long?
Yes, you can sue your car insurance company for taking too long to process your claim if it constitutes bad faith. Insurance companies are expected to handle claims in a timely manner, and unreasonable delays can be grounds for legal action if they negatively impact you.
Can I sue my insurance company for not fixing my car?
Yes, you can sue your insurance company if your policy includes coverage for vehicle repairs and they fail to honor that coverage. Before taking legal action, ensure that you have thoroughly documented your claim and have communicated your concerns with the insurer.
How to sue a car insurance company without a lawyer?
To sue a car insurance company without a lawyer, follow these steps:
- Research: Understand your policy and the legal grounds for your claim.
- File a Complaint: Start by filing a complaint with the insurance company and your state’s insurance department.
- Prepare Your Case: Gather evidence, documents, and correspondence related to your claim.
- Small Claims Court: Consider filing in small claims court if the amount is within the court’s limits and the process is simpler.
- Follow Procedures: Adhere to court procedures and deadlines, and present your case clearly and effectively.
Why is my car accident claim going to court?
Your car accident claim may be going to court if the insurance company denies your claim, disputes the amount of compensation, or if there are unresolved issues that cannot be settled through negotiation or arbitration. Going to court allows for a legal resolution based on evidence and legal arguments.
Can you claim insurance if it was your fault?
Yes, you can claim insurance even if the accident was your fault, depending on your coverage. For example, if you have collision coverage, it will cover damage to your vehicle regardless of fault. However, claiming may affect your premiums and potentially your no-claims discount.
Where can I report a company?
You can report a company to relevant authorities such as the Better Business Bureau (BBB), your local consumer protection agency, or regulatory bodies specific to the industry the company operates in. For insurance companies, you might report to your state’s insurance department.
In which of the following cases is the insurer liable?
The insurer is typically liable in cases where the claim falls within the terms of the insurance policy, such as damage or loss covered by the policy, provided that all conditions and procedures are followed.
What is the period of own damage cover in car insurance?
The period of own damage cover in car insurance refers to the duration for which the insurance policy provides coverage for damage to your vehicle. This period is usually outlined in the policy and often corresponds with the term of the insurance contract.
How does insurance work when it’s not your fault?
When the accident is not your fault, your insurance company may pursue a claim against the at-fault driver’s insurer to recover costs. You may also use your own insurance for repairs or medical costs and then seek reimbursement from the at-fault party’s insurance.
Do I lose no-claims if it wasn’t my fault?
Typically, you do not lose your no-claims discount if the accident was not your fault, provided you can prove it was the other party’s fault and that you have reported the claim accordingly.
Do I need to pay excess if it wasn’t my fault?
In most cases, you will still need to pay the excess amount upfront, even if the accident was not your fault. However, if the other party is found liable, you might be reimbursed for the excess amount.
How should I complain effectively?
To complain effectively, clearly state your issue, provide all relevant details and documentation, and specify your desired resolution. Be polite and concise in your communication. Consider escalating the complaint to higher authorities if necessary.
How do I write a complaint to a company?
When writing a complaint, start with a clear statement of the problem, include relevant details and any supporting documentation, describe the impact of the issue, and specify what you would like the company to do to resolve the problem.
What is negligence in insurance law?
Negligence in insurance law refers to a failure to exercise reasonable care, resulting in damage or harm. In insurance claims, establishing negligence may involve proving that a party failed to uphold their duty of care, leading to an accident or loss.
What limits the liability of the insurer?
The rights of indemnity holder damages and no-fault liability in certain cases are governed by the insurer’s liability, which is constrained by the terms of the insurance policy. This includes coverage limits, exclusions, and deductibles, which set the maximum amount the insurer will pay for a claim and specify situations where coverage may not apply.
What are the liabilities of the insurer?
The liabilities of the insurer include paying valid claims within the coverage limits of the policy, adhering to the terms and conditions outlined in the policy, and providing timely and fair settlement of claims.
Which insurance company is the most expensive?
The cost of insurance can vary widely based on factors such as coverage type, location, and individual risk profiles. Generally, the most expensive insurance companies may offer comprehensive coverage or higher limits but can vary depending on specific needs.
Which insurance company is the richest?
The richest insurance companies are typically those with the largest market capitalization and assets. Companies like Berkshire Hathaway, Allianz, and Prudential are examples of large and financially robust insurance firms.
Which company offers the best insurance?
The best insurance company depends on individual needs and preferences. Factors to consider include coverage options, customer service, claims process, and cost. Companies like State Farm, Geico, and Progressive are often noted for their strong offerings.
Is a vehicular accident a criminal case?
A vehicular accident is typically not a criminal case unless it involves criminal actions such as driving under the influence, reckless driving, or vehicular manslaughter. Most accidents are handled as civil matters involving insurance claims and damages.
What is the period for personal accident insurance claim?
The period for filing a personal accident insurance claim varies by policy and insurer. Generally, claims should be filed as soon as possible after the accident occurs. Check your policy for specific time limits and requirements for filing a claim.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.