How to Sue a Car Insurance Company

You may have filed a claim after getting involved in an accident, but your insurance firm is stalling. This article provides a step-by-step guide on how and when to sue your car insurance company.

How to sue a car insurance company

Steps to Suing Your Car Insurance Company

Once you pay for car insurance, you are entitled to certain benefits specified in the agreement. If your auto insurance company fails to provide the benefits, you can file a lawsuit against them. Here are the steps to using your car insurance company:

Claim Rejected

If an insurance firm rejects your claim, you will receive a denial letter explaining why you were rejected. The insurance firm would reject your claim if the insurance did not cover the driver involved in the accident. The insurance provider may also reject your claim if you were the at-fault driver in the accident.

If you disagree with the denial of the claim, you can gather all the evidence and file a lawsuit against the insurance provider.

Paperwork

Before filing a lawsuit against your insurance provider, you must get all your paperwork right. You will have to provide a copy of the car insurance policy in the form that it was when you filed the claim.

You will also need all copies of relevant conversations between you and the insurance firm. The copies may include letters, forms and mailings between you and the insurance provider.

Appeals

Most car insurance companies provide a window of appeal once your claim is rejected. Once you appeal, you need to keep copies of your appeal requests and the response from the insurance firm.

Timeline

When suing your insurance company, you must understand that there are timelines known as statutes of limitations. The length of these deadlines usually varies depending on your state. 

When Can I Sue My Insurance Company for Denying My Claim?

Insurance companies must oblige by the guidelines outlined in the policy. If your insurance company doesn’t abide by the agreement, you can file a lawsuit against them. Here are some of the instances that may prompt you to sue your auto insurance company:

  • Delayed investigations into your claim.
  • Failure to defend you in a liability lawsuit where your liability policy covers the claim.
  • Refusal to pay a claim that is legal.
  • Failure to approve or deny a claim within a certain timeframe
  • Rejecting a claim without providing reasons for the denial

Can You Sue a Car Insurance Company For Negligence?

Policyholders have the right to sue insurance companies if they behave negligently. If you have evidence that your insurance provider has failed to deliver, you can sue the insurance firm for negligence.

However, before filing a lawsuit, it is important to consult a skilled attorney to advise you accordingly.

Can You Sue a Car Insurance Company in Florida?

Florida state laws allow policyholders to sue auto insurance companies if they act in bad faith. If your insurance provider fails to abide by the rules of the policy, you can pursue a civil claim. Here are some examples of an insurance company acting in bad faith:

  1. Refusing to investigate your claim.
  2. Failure to pay for your legitimate case.
  3. Breaching the guidelines outlined in the insurance policy contract
  4. Intentionally undervaluing the cost of your claim.

Summary

As a policyholder, you can sue your insurance company if they do not abide by the policy contract. You can file a lawsuit against your insurance provider for acting in bad faith, negligence or denying your claim. However, you must work with an experienced lawyer to help you in the legal process.

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