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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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Mar 18, 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: Mar 18, 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
- 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
You should consider taking your auto insurance company to court if you have evidence they wrongly denied your claim. However, you should always seek out a lawyer to help you navigate your case and the 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.
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:
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.
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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
There are laws to protect consumers from insurers in each state. It is fairly common for auto insurance 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 a car insurance company for denying your claim 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
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 take your insurance company to court, don’t go it alone. Make a compelling case and hire a lawyer to defend your interest.
More About How to Sue a Car Insurance Company for Claim Denial
Suing your car insurance company for denying a claim can be expensive and time-consuming. It is not something to be taken lightly and can be avoided altogether by choosing a reliable and legitimate auto insurance company that will handle your claims.
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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.
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 prepare for suing your auto insurance company, keep a detailed record of all your correspondence with them. Document your car’s condition with photos and keep records of any expenses you incur, including repair bills, medical bills, legal fees, and lost time at work. It’s also crucial to hire an experienced lawyer who has a background in insurance litigation to represent your interests.
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.
Can an auto insurance company sue me?
It’s not common, but there are exceptions, including if they detect insurance fraud. Learn more in our article Can my auto insurance company sue me?
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto 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.