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Yes, you can sue an auto insurance company following a car accident if the company wrongfully denies your claim, underpays your claim and closes it out, or otherwise acts in bad faith.
If this is your situation, you may need to file a car accident lawsuit to seek the compensation you rightfully deserve from the insurance company to cover losses and damages.
An auto accident lawyer can be a great resource and assist you throughout the legal process of suing a car insurance company. They can also assist you in getting the maximum settlement possible for your unique case.
Lawsuits against motor vehicle insurance companies allow accident victims to pursue rightful compensation in the event the company does not provide it.
A victim may sue their own insurance company or the at-fault driver’s insurance company depending on the state’s liability requirements.
A person may choose to file a lawsuit against an insurance company if the company acts in bad faith during the insurance claims process.
Examples of bad faith insurance, or tactics used to get out of paying a claim or paying a claim in full, include:
A car accident claim, also called a personal injury claim, is what is filed by insurance policyholders following an accident.
This claim helps accident victims receive compensation for damages and losses incurred in the accident. A claim may be filed with your insurance company or that of the at-fault party’s.
Car accident lawsuits refer to when an accident victim sues the insurance company for not handling the claim properly.
For example, if the insurance company doesn’t provide a proper payout or address your claim, you may choose to sue the company.
A person’s eligibility for suing a car insurance company is typically based on how the insurance company handled their claim.
Most often, people whose injury cases have been ignored, denied, dismissed, or underpaid are eligible to file a lawsuit against the company.
If you received a payout from the insurance company that accurately reflects the damages you experienced, you may not be able to sue the company.
There are different types of lawsuits you can file with an auto insurance provider. Understanding these is an important aspect of the decision to sue in the first place.
The most common types of lawsuits brought against insurance companies on behalf of accident victims include:
Understanding the factors that influence car accident insurance lawsuits can help ensure your case is solid and you receive maximum compensation. A car accident attorney can help you better understand any factors you aren’t familiar with.
A person may be at fault in, or cause, the accident, but that doesn’t always mean you can file a lawsuit against their insurance company. The person must also have been acting negligently at the time of the crash to be found at fault.
For example, if a person had faulty brakes and this resulted in an auto accident, they are at fault but didn’t act negligently.
In a fault state, accident victims file claims with the at-fault driver’s insurance company. This means that you would also sue that driver’s insurance company if they failed to pay your claim or acted in bad faith.
In a no-fault state, driver’s file claims with their own insurance company and would also file a lawsuit against their own provider if the company didn’t pay out or denied their claim.
However, in no-fault states, if your damages exceed that of your own personal injury protection (PIP) policy, you can still sue the at-fault driver’s insurance provider for coverage.
It’s important to establish liability in accident cases to ensure you file a lawsuit with the right insurance company. A driver must be at fault for the accident to be found liable.
However, being at fault doesn’t automatically mean you are liable for an accident. Liability is closely related to the level of negligence present in an auto accident.
Negligence refers to a person’s failure to follow and adhere to the proper traffic laws that would prevent an accident. For example, texting and driving is considered negligent.
There are a few different types of negligence that govern personal injury lawsuits, including:
Types of negligence affect lawsuits in that you can sue the company for not paying your claim but will only be compensated based on your level of negligence for the accident.
While motorists are legally required to have full auto insurance coverage to drive in any state, some are still uninsured or underinsured.
This can affect a lawsuit in that an uninsured or underinsured driver doesn’t have the coverage that would make an insurance company culpable for damages.
As a result, you’d have to sue the underinsured or uninsured at-fault motorist in a civil lawsuit to seek compensation for losses.
There are several steps required when suing a car insurance company following an accident. Your personal injury attorney, or auto accident lawyer, can help you determine and understand these steps.
An experienced attorney can review your case and give you a better idea of whether it has the potential to move forward and secure a settlement.
Because it’s not in their best interest to represent you if your case isn’t a strong one, most car accident attorneys will be truthful with you.
You can use the information gleaned from this case evaluation to determine whether you want to pursue the lawsuit.
Your personal injury lawyer will put together and file your initial insurance claim following your accident. This may include collecting evidence and reviewing information such as medical bills.
The discovery process provides both parties the opportunity to share evidence to ensure there are no surprises. This is also a chance for parties to depose each others’ witnesses if necessary.
A thorough discovery process is crucial to a successful car insurance lawsuit.
Another step in the legal process following an auto accident is negotiations between both parties. Your attorney will handle all negotiations on your behalf and work to get you a fair settlement for your damages and losses.
In most cases, a claim will settle before it goes to court.
If your claim does not settle during the negotiations process, you may choose to proceed with a lawsuit. It is crucial to hire an auto accident lawyer with trial experience in this instance.
This type of attorney can give you the best chance at winning your case and obtaining fair compensation.
There are several pieces of evidence that can support your case when suing a car insurance company.
Examples of evidence used in car insurance lawsuits include:
There are different types of car insurance coverage a motorist can carry. The type of coverage the liable driver has will affect the compensation you may receive from their insurance company.
This type of coverage is used to compensate the insurance carrier for losses or damages as a result of a collision. For example, if you have collision coverage with your insurance provider, they may compensate you for vehicle damages should you be in an accident.
This type of coverage is used to cover losses and damages incurred by other motorists should you be liable for an accident. For example, if you caused a collision and the other driver suffered injuries, your liability coverage may compensate that driver for medical expenses.
This type of coverage provides compensation to motorists should they experience vehicle damage due to natural causes like storms.
A statute of limitations is the amount of time you have from the date of the accident to file a claim or sue an insurance company.
In most cases, the statute of limitations is two to three years from the incident date. However, this can vary from state to state.
Working with an experienced auto accident attorney can ensure you know the exact statute of limitations where you live.
Additionally, insurance companies may try to drag out your claim until the statute ends. An attorney can help stay on top of your claim or lawsuit to ensure this doesn’t happen.
In 2020, the average settlement amount for bodily injury following an auto accident was $20,235. The average settlement amount for property damage as a result of a collision was $4,711.
Data from another source between 2015 and 2020 found that average car accident settlement amounts were around $24,000.
Various factors affect the settlement amount a person will receive, including the amount of lost wages, medical expenses, severity of injuries, and property damage.
Other factors include whether they were at fault or negligent, the other party’s amount of insurance coverage, and negligence laws in the state where they file the claim.
In most cases, any type of accident may qualify for an insurance lawsuit if damages were incurred and the company didn’t sufficiently compensate you.
Examples of types of accidents that may qualify include:
There are several types of damages you may claim when suing a car insurance company. Some of the most common include:
You may incur various medical expenses due to injuries as a result of the accident. Common medical expenses include emergency room visits, hospital stays, diagnostic testing, and surgery.
Any bodily injury caused by an accident involving a negligent driver can be covered by insurance.
Common auto accident injuries include:
Some injuries may affect your ability to earn what you did prior to the accident. If you can no longer earn the same amount of wages due to auto accident injuries, you may be able to claim this in a lawsuit.
If you are unable to work for a period of time following the accident and lose wages as a result, you can claim lost wages in a lawsuit.
Pain and suffering refers to any negative effects on your life you experienced as a result of the accident and can be considered a damage. An example of pain and suffering is any psychological effects suffered as a result of the collision, like post-traumatic stress disorder.
If you or a loved one experienced injuries that resulted in an inability to function as you once did, this may qualify as damages in a lawsuit.
If a loved one suffered a wrongful death in an accident, you can claim damages to compensate for their lost wages, funeral expenses, medical bills, and more.
The following are statistics related to car accident lawsuits in the United States:
The overwhelming cause of personal injury in the United States is motor vehicle accidents. Collisions account for more than half of all personal injury lawsuit cases.
There are many car insurance companies in the United States, but millions of Americans are represented by a few of the largest auto insurance providers.
If you are wondering whether you can sue your insurance provider for underpaid or denied claims, find your insurance provider below:
Car accident lawsuits can be overwhelming, especially when you’re recovering from physical and emotional damages from the collision.
Working with a personal injury attorney can help ease this burden and ensure you receive the maximum settlement possible.
Contact LegalFinders today to get connected with an experienced car accident law firm that can support you every step of the way. We’d be happy to provide you with a free case evaluation.
The following are some of the most frequently asked questions related to auto insurance lawsuits.
