How To Sue an Insurance Company After an Auto Accident

You have the right to sue an insurance company for a “bad faith denial” after an auto accident if the insurance company rejects your claim.

However, it would be best if you attempted to resolve the issue with the insurance company outside court first.

To win the case against your insurance company, you’ll need to prove that the insurance company failed to act in good faith and fair dealing.

Read on to find out when and how to sue an auto insurance company after an accident.

An image illustrating how to sue an insurance after an auto accident
How to sue an insurance comapny after an auto accident.
Source: florinroebig

When Can I Sue an Auto Insurance Company Following an Accident?

Car accidents happen so often. It’s therefore crucial to protect yourself and others involved.

When accidents occur, they can cost a lot of money in medical bills and fixing your car or other property.

If you’re hurt because someone due to someone else’s carelessness, you shouldn’t have to pay for everything.

But sometimes, insurance companies make it hard to get the money you need to cover your losses.

They might say no to your claim or offer you less than what you deserve.

Instead of agreeing to less money, you might have to sue the insurance company after an accident to get what you deserve.

How To Sue an Insurance Company After an Auto Accident

There are several steps involved when taking legal action against an auto insurance company after an accident.

Your personal injury attorney, or auto accident lawyer, can help you with these steps.

1. Get Your Case Reviewed By A Car Accident Attorney

An experienced attorney can assess your case and tell you if it stands a good chance of getting a settlement.

Most auto insurance accident attorneys will be brutally honest with you since they don’t want to represent you in a weak case.

2. Submit Your Initial Claim

Your personal injury lawyer will prepare and submit your initial auto insurance claim after your accident.

This may involve gathering evidence and looking at information such as medical bills.

3. Go Through Discovery Process

The discovery process allows both parties to exchange evidence to avoid any surprises.

Additionally, this is an opportunity for parties to question each others’ witnesses if needed.

A comprehensive discovery process is essential for a successful auto insurance lawsuit.

4. Begin Car Accident Settlement Negotiations

Another step in the legal process after an accident is negotiations between the auto insurance company and the insured.

Your lawyer will handle all negotiations for you and try to get you a fair settlement for your damages and losses.

In most cases, a claim will be resolved before it goes to court.

5. Take Your Claim To Court

If your claim is not resolved during the negotiations process, you may opt to continue with a lawsuit.

It is important to hire an auto accident lawyer with trial experience in this case.

An auto accident lawyer can give you the best chance of winning your case and getting your deserved compensation.

Evidence Required to Sue an Auto Insurance Company After an Accident

Various types of evidence can support your case against your insurer in a lawsuit.

Examples of evidence commonly used in an auto insurance litigation include:

  • Medical Records: Documents detailing your injuries and the medical care received.
  • Loss Record: Written documentation outlining all losses incurred due to the accident.
  • Insurance Paperwork: Records of filed claims and any correspondence exchanged.
  • Witness Testimonies: Statements provided by individuals present during the accident.
  • Police Report: Official report compiled by responding law enforcement at the accident scene.

What’s the Timeframe for Suing an Auto Insurance Company?

The statute of limitations dictates how long you can wait after an accident to sue an auto insurance company.

Typically, this timeframe ranges from two to three years from the date of the incident, though it differs depending on your state’s laws.

Partnering with a knowledgeable auto accident attorney ensures you’re aware of the specific statute of limitations in your area.

Furthermore, insurance companies might prolong your claim until the statute expires. An attorney can prevent this by actively managing your claim or lawsuit.

Varieties of Accidents Eligible for Auto Insurance Lawsuits

Generally, any accident resulting in damages may be suitable for an auto insurance lawsuit if adequate compensation wasn’t provided by the company.

Examples of qualifying accidents include:

  • Collisions at red lights
  • Incidents involving drunk driving
  • T-bone collisions
  • Head-on collisions
  • Accidents with trucks
  • Motorcycle collisions
  • Pedestrian accidents
  • Violations such as running a stop sign
  • Accidents caused by speeding

Average Settlement Figures in Car Insurance Lawsuits

In 2020, the typical settlement for bodily injury stemming from car accidents averaged $20,235, while property damage settlements averaged $4,711.

Data from a different source spanning 2015 to 2020 showed that the average auto accident settlement amounted to approximately $24,000.

Numerous factors influence the final settlement, including lost wages, medical costs, injury severity, and property damage.

Additionally, considerations such as fault or negligence, the insurance coverage of the other party, and the state’s negligence laws play significant roles in determining the settlement amount.

Types of Damages to Pursue in case you sue an Auto Insurance Company

When taking legal action against a car insurance company, various types of damages can be claimed.

Some common ones include:

  • Medical Expenses for Car Accident Injuries: This covers costs like emergency room visits, hospital stays, diagnostic tests, and surgeries resulting from accident-related injuries.
  • Loss of Earning Capacity: If injuries impair your ability to earn the same wages as before the accident, you can seek compensation for the difference.
  • Loss of Wages: Claiming lost income for the period you couldn’t work due to the accident is possible.
  • Pain and Suffering: This encompasses any adverse impact on your life resulting from the accident, including psychological effects like post-traumatic stress disorder.
  • Loss of Consortium: If injuries prevent you or a loved one from maintaining the same level of companionship or support, this can be considered as damages.
  • Wrongful Death: In cases of fatal accidents, compensation can cover lost wages, funeral expenses, medical bills, and related costs.

Reasons to Sue an Insurance Company

Insurance companies often try to pay you less than you deserve.

You are at liberty to sue your insurance company after an auto accident if:

  • they won’t settle your claim
  • deny your claim without a good reason
  • take too long to handle your claim
  • offer you less money than you deserve
  • if they question your injuries or don’t investigate properly
  • if they act unfairly
  • pay you less than they agreed.

Before you sue, talk to a auto accident lawyer who can help you build a strong case.

Once you file a lawsuit, both sides exchange evidence in a process called discovery.

Ensure you have all the documents you need to prove your case.


To sue an insurance company after an auto accident can be a complex and challenging process.

However, if the company acts in bad faith and denies your claim without a valid reason, you have the right to sue and seek fair compensation for your damages and losses.

To do so, you will need to follow several steps, such as getting your case reviewed by a car accident attorney, filing your initial claim, undergoing discovery, negotiating a settlement, and taking your claim to court if necessary.

An auto accident attorney can help you with each of these steps and represent your best interests in court.

By suing an auto insurance company post an accident, you can hold them accountable for their actions and get the justice you deserve.

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