The rate of the questions “Can you sue insurance companies,” how to sue insurance companies for denying claims, for emotional distress? and many others are increasing daily. However, Insurance is essential in many aspects of a person’s life. Because there is such a high demand for Insurance, the insurance sector receives more than $1 trillion in premiums yearly.

As a result, insurance providers are subject to several state and federal requirements. These safeguard laws give consumers trust in the insurance businesses they engage with.

When a person purchases an insurance policy, they are putting their trust in the provider. However, the buyer does not just trust the company. They also believe in the insurance agent in charge of their policy. 

However, if an insurance company or provider acts carelessly, you can sue the insurance company.

If you believe that your broker or provider has failed to fulfill their responsibilities, you may choose to consider suing an insurance company for negligence. Speaking with an experienced tort lawyer will assist you in determining the best course of action.

You have the right to sue insurance companies if they breach or fail to meet the terms of your policy.

 Common infractions include failing to pay claims on time, failing to pay correctly submitted claims, and filing lousy faith claims. 

Fortunately, several rules are in place to protect consumers like you, and it is not rare for a policyholder to sue insurance companies.

It’s difficult enough to deal with property loss, injuries, the death of a loved one, or some other disaster. So, when you have to fight your insurance provider on top of everything else, it’s easy to feel overwhelmed.

Continue reading to discover the fundamentals of suing insurance companies for refusing your claim or other wrongdoing.

Reasons Insurance Companies May Deny Claims

An insurance company has many legitimate and illegitimate reasons for dismissing your claim. Some of the more typical reasons are as follows:

Lack of coverage: They may claim that your policy does not cover your claim. The exclusions section of Insurance states what is not covered.

Ambiguities in the policy are interpreted in favor of the policyholder rather than the insurer.

Application errors: An insurer may allege that you made certain misrepresentations on your original application, which invalidates your policy’s coverage.

Errors in claims: Check your policy to learn the requirements for reporting a claim to the insurance company. Some deadlines are as short as 24 hours.

Insurance fraud: Submitting false or overstated claims, with civil and criminal penalties, may constitute insurance fraud.

Lousy faith denial: Of course, they won’t give you this explanation, but an insurer may present a variety of justifications, couched in convoluted policy jargon, to conceal the reality that they don’t want to pay for the claim.

When to Sue Insurance Companies for Denying Claims?

Every insurer owes a great deal to its policyholders. They must follow the terms of the contract (the policy), behave in good faith, and refrain from engaging in unfair trade practices.

The insurance industry is controlled at the state level. Their responsibilities differ from state to state. However, in most cases, these duties oblige the insurance firm to refrain from the following:

  • An unsatisfactory and prolonged study into the claim
  • Refusing to pay a claim where a fault is quite obvious
  • Failure to approve or refuse a claim within a reasonable or predetermined time frame
  • Denying a claim with little or no explanation as to why it was denied
  • Failure to defend you in a liability case where your liability policy may cover at least one of the claims.
  • After contestability has passed, denying a claim based on an application misstatement.

However, You may call an insurance attorney before your claim is dismissed if you believe your insurance company is unfair. When an experienced insurance professional is present, it can sometimes encourage the company to honor its commitments better and agree to a fair settlement.

Again, each state has its own regulations and case law that govern the insurance sector.

 Because your insurance coverage is a contract, every state provides for a breach of contract lawsuit.

In several places, you can also file a bad-faith tort action. You may also be eligible to sue under your state’s unfair trade practices statutes. 

Many states have rules or statutes that explicitly address insurance sector trading practices.

Because each state has distinct rules regarding the types of damages you can pursue in a specific lawsuit, an insurance attorney can clarify the damages accessible to you.

However, compensatory damages, such as medical expenses and lost income, are available in each type of litigation. On the other hand, penalty damages are only available in certain circumstances and may be governed by state laws or a court of law.

Tips on How to Sue Insurance Companies for Denying Claims

how to sue insurance companies for denied claims

Whether you plan to sue insurance companies for denying claims, preparing and keeping accurate documents is always a good idea. Consider the following suggestions:

  • Document correspondence with the insurance company and its representatives. Keep copies of emails and take detailed notes on phone interactions, including dates and representatives’ names. Maintain your calm and presume they’re recording your calls.
  • Document your insured items, including receipts and photographs of what is covered. Take pictures of your property, such as your car or home, right after an accident.
  • Record all expenses, including medical bills, repairs, attorney’s fees, and missed wages. Be truthful in your evaluations and record-keeping.
  • Record all expenses, including medical bills, repairs, attorney’s fees, and missed wages. Be truthful in your evaluations and record-keeping. This can help you sue the insurance company.

If you decide to sue insurance companies for denying claims, this documentation can help your attorney build a solid case.

What To Expect When You’re Suing An Insurance Company

  • You and the insurance company both employ attorneys. You aim to select a knowledgeable attorney with expertise in litigating insurance companies. You should also check the lawyer’s references.
  • Your lawyer and the insurance company’s lawyer will conduct “discovery” investigations into the facts and history of the dispute. Documents are exchanged during discovery, and “depositions” are held. A formal fact-finding process conducted under oath by the attorney for the insurance company is called a deposition. 
  • The insurance company and you spend money on court costs, experts, discovery, and travel.
  • During the lawsuit, your lawyer will prepare you for a “deposition.” A “deponent” swears to answer inquiries accurately. Your lawyer should protect you from unfair questions during a deposition by filing “objections.”
  • You will be obliged to testify in Court if your case goes to trial.
  • The conclusion of a case may take several years. You’ll need to wait patiently for the result.
  • You ought to be able to rely on your attorney to manage the case while providing you with periodic “check-ins” to keep you informed of the progress.
  • There’s a good chance that you’ll have to take part in negotiations for a settlement.
  • Throughout the case, you will have to evaluate settlement proposals and make choices. 

Do not Go Up Against  Insurance Companies Alone.

If you want to sue insurance companies for denied claims or engaging in other wrongdoing, it’s important to find a local insurance attorney who can represent your interests.

You’ve already had to deal with the events that led to the insurance claim and the annoyance of an unhelpful insurer.

 Furthermore, you can be sure that the insurance company will be well prepared, with their own team of skilled lawyers working tirelessly to defend their client.

Frequently Asked Questions (FAQs)

Can I Sue Geico for Bad Auto Insurance?

In some instances involving automobile accidents, you may file a lawsuit against Geico Insurance.

 In contrast to the case mentioned above, most of these vehicle accident cases are the result of the victim not receiving adequate compensation from the Geico insurance adjuster.

If you have Geico auto accident insurance and are involved in an accident, insurance claims will be filed. According to the rules, you are due a settlement offer, which is money. 

However, they will make accident victims a lowball offer due to your motor vehicle accident. You might have a legal claim against your insurer, but you should consult a lawyer specializing in auto accidents and insurance claim fraud.

How Do I Sue an Insurance Company Without a Lawyer?

With a lawyer, it is significantly easier to sue an insurance company.

 However, you can do it yourself by speaking with the insurance adjuster, carefully reading your auto insurance policy, and writing to your insurance provider. Be aware that the process may take longer and cost more than you anticipated.

Can I Sue Insurance Companies for Emotional Distress?

Yes, you have the right to sue the insurance companies for emotional distress. 

Remember that you and your lawyer must demonstrate that you incurred emotional distress due to the act of the insurance companies to be able to sue them.

Summary:

Even if you were the at-fault driver, you can sue your insurance company, but this might be not easy.

 You are unlikely to win your case if the insurance company declines your claim despite you being clearly at fault.

 If your insurance company determines you were at fault and third parties agree, you cannot win a lawsuit claiming you were not.

Related article:

What Happens When You Get A DUI? Penalties Explained

How Long Does DUI Stay on Record? Best US Practices & All You Need

Is California a No-Fault State?

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