Can I sue my auto insurance company?

Dealing with the aftermath of a car accident is stressful. You are busy getting medical attention post-accident, repairing your car, filing an insurance claim, and working out how to get around while your vehicle is out of action. 

Usually, your stress is eased a little because you know you can rely on your insurance company to support you and cover your financial losses. But what happens when your insurance claim gets rejected or your insurance company doesn’t pay on time? 

Can you sue your insurance company if they deny your 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. 

There are laws to protect consumers from insurers in each state. It is fairly common for policyholders to sue a car insurance company. However, it’s important to remember that insurers have the right to deny specific claims. You need to prove your claim was wrongfully denied before you will be successful in court.

Suing an insurer is an expensive business. Before you decide to sue your insurer, make sure you have a strong case and have consulted an experienced lawyer to get a legal opinion on the matter. 

Read more: How to Get an Attorney Auto Insurance Discount

When can you sue the insurance company for denying your claim? 

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 insurance coverage.

These obligations mean that an insurance company 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
• 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 use is to fully understand your auto insurance policy when your claim is denied. 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.  For more information on how a denied auto insurance claim will affect your rates, click here.

What kind of legal action can you take against your 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 insurance laws are regulated by states. The types of lawsuits you can bring against the insurer will change, but one type that remains constant for all states is a breach of contract action. This is because insurance is a contract, and you sue if they deny the claim and breach the terms of the contract. 

Tip For Suing Your Auto Insurance Company

If you’re contemplating using your auto insurance company, it is important to be prepared. 

• 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 take your insurance company to the court, don’t go it alone. Make a compelling case and hire a lawyer to defend your interest. 

Can you sue your auto insurer? 

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.