Can you Sue your Auto Insurance Company?

Can you Sue your Auto Insurance Company?

The million-dollar question is answered with a YES.

Success in a lawsuit against your insurance company hinges on valid insurance coverage when the damage or injury occurred.

Insurance is a contract, and breaches can lead to legal consequences.

Common scenarios for suing your insurer include uninsured at-fault drivers in accidents.

Your insurance can provide benefits like replacement car value, medical, funeral, and more.

Insurance companies may resist payouts and use tactics to reduce compensation.

If your claim is denied, don’t give up.

This post outlines the process of suing your insurance company for denied claims and identifies situations where they can be found negligent.

An image illustration if you can Sue your Auto Insurance Company
Can you Sue your Auto Insurance Company
Source: (dolmanlaw)

Instances of Negligence by Insurance Providers

Most circumstances leading to legal action against insurance companies revolve around negligence.

A legal concept in tort law, occurring when one party breaches their duty of care to another.

Within the insurance sector, some typical situations warranting consideration for a negligence lawsuit against an insurance provider include:

  1. Insurance agents not reporting claims to the company.
  2. Providing incorrect information regarding policy coverage.
  3. Neglecting to inform clients about the insurer’s financial difficulties.
  4. Denying clients the coverage they’ve requested.

Why Insurance Claims Get Denied

Making a successful insurance claim isn’t always straightforward.

Insurance companies may try to prevent payouts.

They consider factors like the insured’s policy, coverage issues, and timely submission of claims.

If there’s no valid coverage or the type of damage isn’t covered, your claim may be denied.

But if bad faith is suspected, you can take legal action against the insurer.

Types of Lawsuits Against Insurance Companies

You can pursue various lawsuits against insurance companies.

Common cases involve insured parties’ negligence, like in auto accidents where the insurer refuses compensation for medical bills.

Breach of contract suits arise when the insurer fails to fulfill their coverage obligations despite timely premium payments.

Consumer protection law violations may lead to legal action, and if the company acts in bad faith by manipulating policy terms, you can file a lawsuit against them.

An image illustration of Sueing your Auto Insurance Company
Sueing your Auto Insurance Company
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When Can I Take Legal Action Against My Insurance Company?

Keep in mind that insurance companies must honor their coverage commitments.

If they breach this duty through unlawful actions or bad faith, you have grounds to sue.

Since insurance regulations vary by state, specific obligations differ, but a breach may occur when the insurer:

  1. Rejects a claim with clear liability.
  2. Fails to provide a reason for claim denial.
  3. Unreasonably delays claim investigations.
  4. Denies a claim based on misstatements after the contestability period.
  5. Doesn’t approve or deny a claim promptly.
  6. Refuses to represent you in a liability lawsuit with potential policy coverage.

How to Sue an Insurance Company for Negligence

When pursuing a negligence lawsuit against an insurance company, your initial action should be to consult a skilled attorney experienced in insurance litigation.

Having a capable lawyer who can navigate the insurer’s tactics is your best chance for a favorable outcome.

-Ensure you’ve adhered to the insurer’s reporting process as stated in your policy.

Often, this involves exhausting internal remedies before considering legal action.

-Maintain records of all communications with the insurance provider as they may prove vital to your negligence claim. Additionally, document any expenses incurred.

-Choosing the right court for your case is crucial.

It’s advisable to seek advice from an experienced insurance attorney to avoid filing in the wrong court and risking case dismissal.

-In essence, your key to a fair resolution starts with step one: hiring a competent attorney, who will guide you through the rest of the process.

Tips for Filing a Lawsuit Against Your Insurer

For Claim Denial If you’re considering suing your insurance company for denying your claim, follow these steps for a smoother process:

  1. Document All Communication: Keep copies of all email and phone correspondence with the insurance company.
  2. Track Expenses: Maintain a thorough record of expenses, including medical bills, lost wages, attorney fees, and repair costs. A contingency fee arrangement with your lawyer, where they get paid a percentage of the benefits recovered, can be a cost-effective choice.
  3. Hire an Experienced Attorney: Seek an attorney with insurance litigation expertise for proper guidance and insight into dealing with insurance companies.
  4. Maintain Property Records: If your policy covers property, document damage promptly with photos and records. Keep receipts and essential information.

While you can sue an insurance company without an attorney, it’s advisable to have professional legal assistance to enhance your chances of success and avoid costly mistakes.

Finding the Right Attorney

Consult law firms, conduct online searches for insurance lawyers, and ask for recommendations from successful claimants.


Don’t let an insurance company deny your rightful compensation.

They often use tricks and legal experts to resist payouts.

So enlist the support of an experienced insurance lawyer to protect your rights and secure your claim.

ALSO READ : Can you get Auto Insurance if you owe another Company?

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