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Can I Sue State Farm After A Car Accident?

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Yes, you can sue State Farm after an auto accident if the company has failed to act in an appropriate and fair way regarding your insurance claim.

Examples of instances when you may want to file an injury lawsuit against State Farm is if they deny your claim, close it out without providing fair pay, or otherwise act in bad faith.

Suing your auto insurance company can help you receive the settlement you deserve to cover damages and losses after a motor vehicle accident. If you feel suing State Farm is the right option, consider working with a car accident attorney who has experience in this field.

A personal injury attorney, or auto accident lawyer, can help ensure your rights are upheld throughout the legal process and that you win the compensation you deserve.

Reading State Farm car insurance policy with red car toy

What To Know About Suing State Farm For An Insurance Claim

Suing State Farm for a personal injury claim related to a car accident can allow victims to recover compensation for what they lost in a collision.

Depending on the at-fault laws in your state, you may be suing your own insurance company or that of the at-fault motorist.

For example, if you live in a no-fault state, you would file a lawsuit against your own insurance company as the policyholder. In a fault state, the at-fault driver’s insurance company is responsible for compensating victims, so this is who you would sue.

Is Suing State Farm The Same As An Insurance Claim?

Filing a State Farm insurance claim is typically the first step accident victims will take following a car crash. This claim helps accident victims to seek compensation for accident injuries, property damage, and other losses.

If your attorney and that of the insurance company’s do not reach an agreement on a fair settlement amount, you may consider suing the company. This entails filing a lawsuit with your local court to pursue sufficient compensation.

It’s important to work with a personal injury lawyer when making this decision. They can help you better understand your eligibility according to your insurance policy and whether the settlement offer is fair.

An attorney can also help you through the initial claims process and help make sure you receive compensation for all losses and damages.

Eligibility For Filing A Car Accident Lawsuit Against State Farm

Whether you’re eligible to pursue a lawsuit against State Farm will likely depend on how the company handled your claim.

In most cases, claimants choose to file a lawsuit against an insurance company as a result of the company acting in bad faith.

Examples of bad faith may include:

  • Not handling a claim in a sufficient amount of time
  • Denying claims that are valid and should legally be honored
  • Lowballing the cost of damages to pay out less than what’s fair
  • Asking claimants to meet unrealistic demands to prove damages

What Type Of Lawsuit Can You File Against State Farm?

There are two primary types of lawsuits you may file against an insurance company like State Farm. The law firm you work with can help you decide which one is appropriate for your personal injury case.

The two types of lawsuits include:

  • Personal injury lawsuit: A lawsuit against the liable party with the intent to seek fair compensation for damages and losses sustained in an accident
  • Wrongful death lawsuit: A lawsuit against the at-fault party’s insurance provider intended to seek compensation for the loss of a loved one and damages and expenses that arose as a result

Factors In Car Accident Lawsuits Against Insurance Companies

There are several factors taken into account when filing a lawsuit against big insurance companies such as Allstate, Progressive, or State Farm.

Some of the most important factors include:

  • Fault in the collision: The at-fault driver must have also been acting negligently in order for you to file a lawsuit against their insurance company.
  • Fault vs. no-fault states: If you live in a no-fault state, you would sue your own insurance provider. If you live in a fault state, you’d file a lawsuit against that of the at-fault driver.
  • Level of negligence: If you are found to have acted negligently in a way that contributed to your damages and losses, this can impact how much you can sue for and your eligibility.
  • Liability for the accident: You can only sue the other driver’s insurance company if they are found liable for the accident.
  • Insurance coverage for the at-fault motorist: The at-fault driver’s level of insurance coverage and policy limits can play a role in your ability to sue their company in your car accident case.

How To Sue State Farm Insurance After An Auto Accident

It’s important to follow the necessary steps when filing a lawsuit against State Farm. The injury law firm you’re working with can help you through these steps.

1. Get A Free Case Evaluation With A Car Accident Lawyer

If you haven’t already done so, you’ll want to have your case evaluated by an experienced auto accident attorney. They can provide you with legal advice and a better idea of whether your case is worth pursuing.

2. File Your Car Accident Claim

Before you can sue an insurance company like State Farm, you first must file a car accident claim with the provider.

Your attorney can help you through this process and ensure you have all necessary evidence when submitting the claim. They may also work directly with the claims adjuster on your behalf.

3. Start Settlement Negotiations

After filing the claim, your attorney will begin negotiating with the legal representation of the liable party. This is when your lawyer fights on your behalf to ensure you receive fair compensation for losses and damages.

4. Move Your Lawsuit To Court

If a fair settlement cannot be reached outside of court, your lawyer may recommend that you file a lawsuit to further pursue compensation. This will involve filing a case with your local court.

Evidence You Need To Sue State Farm For An Insurance Claim

There are several important pieces of evidence you can gather to best support your case. Your legal representation can help you determine which evidence is necessary for your claim.

Common evidence needed to sue State Farm includes:

  • Police report: This will be filled out by the police who arrive at the scene of the accident and will include information such as who was at fault and the parties involved.
  • Medical records: Be sure to keep track of any medical records, including medical expenses, obtained as a result of injuries sustained from the accident.
  • Contact information: This includes the contact information of the other parties involved and contact information for any witnesses you obtain statements from.
  • Recorded statements: If you collect any witness statements, include this in the evidence for your claim.

State Farm Insurance Coverage And How It Affects Lawsuits

There are a few different types of coverage options you or the at-fault driver may have with State Farm. The type of coverage a person has can affect how much and the type of compensation they’re eligible for in a lawsuit.

Common types of State Farm auto insurance coverage include:

  • Liability coverage: If you’re liable for a car crash and hold liability insurance, this coverage will compensate the other victims of the accident for their losses and damages.
  • Collision coverage: This type of insurance will provide coverage to you directly should you experience losses and damages in an accident regardless of fault.
  • Comprehensive coverage: If you hold comprehensive coverage and experience damages to your car due to natural causes, your insurance will compensate you for these damages.

How Long Do You Have To Sue State Farm After An Accident?

How long you have to sue State Farm after an auto accident will depend on the statute of limitations in your state. The statute of limitations dictates the length of time you have to file a claim or lawsuit from the date of your accident.

In most cases, the statute of limitations is two years from the day your collision occurred. Working with an experienced attorney can help ensure you know this deadline and file your lawsuit within the appropriate time frame.

State Farm Car Insurance Lawsuit Settlements

While there isn’t any readily available information on typical settlement amounts for State Farm car accident lawsuits, there is for auto insurance lawsuits in general. These numbers factor in settlement numbers from large insurance companies like State Farm.

The following are some settlement averages in recent years:

  • The average settlement amount for a bodily injury lawsuit in 2020 was $20,235.
  • The average settlement amount for property damage resulting from a crash was $4,711.
  • The average car settlement amount in general from 2015 to 2020 was $24,00.

Types Of Damages In State Farm Car Accident Lawsuits

There are a number of damages that can arise as a result of a crash and that you can claim in an insurance lawsuit.

Common types of damages seen in State Farm car accident lawsuits include:

  • Medical bills: If you suffered injuries during your accident, you likely incurred medical expenses to tend to those injuries. Common medical expenses include hospital stays, surgery, doctor’s visits, and ER visits.
  • Pain and suffering: Pain and suffering is any negative impact the car accident had on you, such as experiencing psychological and physical issues.
  • Lost wages: If you were unable to work for a period of time due to injuries incurred in the accident, you may be able to sue for lost wages.
  • Lost earning capacity: If the car collision affected your capacity to earn what you once did, this may be a viable damage to include in your lawsuit.
  • Wrongful death: If a loved one was wrongfully killed in a car crash, you may be eligible to sue State Farm for compensation related to their loss.

State Farm Auto Insurance Statistics

State Farm offers an annual financial statement that includes details related to auto insurance payouts. In 2022, the company’s claims and loss adjustment costs totaled $48.4 billion.

This means that State Farm paid out almost $50 billion in claims to accident victims.

While State Farm paid out billions to auto policyholders in 2022, many were still left without the compensation they needed to cover damages after an accident. If you were one of these victims, reach out for a free consultation with a car accident lawyer today.

Get Help Suing State Farm After A Car Crash Today

If you feel that State Farm did not handle your car accident claim fairly or they denied your claim entirely, you may want to consider filing a lawsuit to seek compensation.

The legal process of suing a large insurance company can be intricate and complicated, so working with an experienced car accident lawyer is imperative.

Your attorney can help you better understand your coverage, damages, and chances at a successful lawsuit. They will also work with insurance adjusters, lawyers, and other individuals throughout the process on your behalf.

Contact LegalFinders today to get connected with a trusted auto accident lawyer in your area today.

State Farm Car Accident Lawsuit FAQs

The following are frequently asked questions related to State Farm car accident lawsuits:

How long does State Farm take to offer a settlement?

How long it will take State Farm to offer a settlement depends on several factors, including the severity of the collision and state laws. In most cases, you won’t wait more than a few months to receive information on a settlement offer.

How to negotiate a settlement with State Farm?

The best way to negotiate a settlement with State Farm is through your auto accident attorney. They will keep an open line of communication with the insurance provider’s legal team and negotiate on your behalf.

Why does State Farm deny so many claims?

There are several reasons why insurance companies deny auto accident claims.

Some of the most common reasons for claim denial include:

  • You were acting illegally at the time of the accident.
  • You didn’t immediately report the accident to State Farm.
  • You don’t have the necessary insurance policy to receive coverage.
  • Your claim exceeds your policy limit.

If State Farm has denied your claim and you believe you’re entitled to compensation, consider hiring an experienced car accident law firm to take your case to the next level.

Does State Farm have a good reputation for paying claims?

The J.D. Power 2022 U.S. Auto Claims Satisfaction Study found that State Farm ranked higher than many other insurance companies in terms of customer claim satisfaction. They received 882 points out of an available 1,000.

Article Sources

Forbes Advisor. “Typical Car Accident Settlement Amounts (2023).” Retrieved from: https://www.forbes.com/advisor/legal/auto-accident/typical-car-settlement-amounts/.

J.D. Power. “​​Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase, J.D. Power Find.” Retrieved from https://www.jdpower.com/business/press-releases/2022-us-auto-claims-satisfaction-study.

Investopedia. “What Is Bad Faith Insurance and How Companies Can Act.” Retrieved from: https://www.investopedia.com/terms/b/bad-faith-insurance.asp.

Progressive. “How long does it take to get a settlement check after a car accident?” Retrieved from: https://www.progressive.com/answers/car-insurance-claim-settlement-time-limits/.

State Farm Mutual Automobile Insurance Company. “State Farm® announces 2022 financial results.” Retrieved from: https://newsroom.statefarm.com/2022-by-the-numbers/.

ValuePenguin. “Why Your Car Insurance Claim Was Denied & How to Appeal.” Retrieved from: https://www.valuepenguin.com/why-your-auto-insurance-claim-may-be-denied-and-what-do-if-it.

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