How to Sue an Insurance Firm Following a Car Crash

Exploring Car Crash Claims

In order to sue an insurance company after a car accident, it is important to understand the basics of car accident claims. Most car accidents are caused by the negligence of at least one of the drivers. In many car accidents, the negligent party admits fault. However, even in cases where fault is clear, it is still necessary to file an insurance claim to recover damages. After a car accident, it is good practice to collect the names and contact info for any witnesses. If the police are called, they will likely interview all those involved after an accident. The drivers involved are interviewed by police if their physical conditions permit. These interviews, witness statements, and physical documentation are crucial in proving fault. It is essential to the accident case that the accident scene and injuries be thoroughly documented. This includes photos of vehicles, roads, and skid marks. It is also helpful to write down the details of the accident while they are fresh in the mind. It is necessary to file an insurance claim after an accident caused by the negligence of another driver. The claim should include as much information about the accident , injuries, and vehicle damage as possible. The insurance company of the negligent driver will then begin investigating the claim. Eyewitnesses may be interviewed, and the coverage limits should be verified. In some cases, the accident victim may be asked to give a recorded statement. The insurance company may send an adjuster to document the injuries. In the event of catastrophic injuries, an insurance adjustor may be sent to examine long-term care needs. Once the insurance company has investigated the accident, they will likely make a settlement offer. At this point, the accident victim and personal injury lawyer can demand compensation. A letter of protection should also be sent to the negligent driver’s insurance company, allowing the personal injury lawyer to pursue the injuries without worrying about paying a hospital out-of-pocket. If all negotiations go well, an out-of-court settlement can occur. This benefits the insurance company, the victim, and the negligent driver. Should an out-of-court settlement not be reached, filing a small claims action or personal injury lawsuit may be necessary.

Why Sue an Insurance Company

If the insurance company denies my claim, then I will go to court and let a judge decide between us. That is a common belief about how insurance works. In reality, going to court is rarely necessary. Instead a lawsuit may be the best option if you have unreasonable or excessive delay from your insurance company after a car accident. Most of the time a lawsuit only becomes necessary when you get the runaround from the insurance company.
Common Reasons to Sue a Car Insurance Company

1. Denied Claims

A late denial of a claim is almost never a basis for a lawsuit. For example, if you provide the insurance company with your claim immediately after a car accident, they are required to respond within a reasonable time to your claim. Reasonable varies based on the circumstances of the claim. However, if an insurance company takes months to respond to the claim, you may have a lawsuit.

2. Lowball Settlement Offers

Lowball offers are almost never a basis for a lawsuit. Unless, there is no reason for a lowball offer and you have serious injuries. An insurance company has a business incentive to make lowball settlement offers. You will take the settlement offer in a panic. You are confused. You have car bills. Doctors want to be paid. You missed work because of your injuries. An insurance company will wait as long as you linger without treatment and then make a lowball offer.

3. Delays in Payment

Payment delays are almost never a basis for a lawsuit. For example, the insurance company should pay your medical bills within 30 days of a car accident. If the insurance company does not pay your medical bills within 30 days, they owe interest on the unpaid medical bills and penalties. However, this is not a basis for a lawsuit. It is a basis for telling a judge to order the insurance company to pay the claim plus penalties and interest.

Legal Considerations for a Lawsuit

Before you can sue an insurance company for any reason, you must have legal grounds to do so. Breach of contract and bad faith insurance practices are the two most common reasons you can sue your insurance company.
Breach of Contract
Most insurers operate under a contract with their customers. When you buy an insurance policy, you’re typically signing your name to something that states you’ll pay X amount per month if they agree to insure you, and there are certain circumstances they will pay you a specific amount of money. Determining whether or not your insurance company is in breach of its contract with you is often the first step to filing a lawsuit.
You must speak with your attorney to understand the exact terms of your contract and what portion of the contract your insurance company may have violated. If they are in breach of contract, that’s when they have opened themselves up to a lawsuit.
Bad Faith Insurance Practices
Not every insult to your intelligence by your insurance company is enough grounds to sue them based on breaching your contract. When assessing to see if you have grounds for taking legal action by filing a lawsuit, your attorney will determine if your insurer is guilty of a tort known as bad faith insurance. There are a number of situations that can fall into the realm of bad faith insurance. Some examples include a mal-adjusted claims process that fails to comply with the standards that are required for insurers to follow, or purposely drawing out the claims process with the intent to gain from future interest.
Simply failing to pay you what you’re owed, even if it’s not in bad faith, is not always grounds for a lawsuit. The law requires evidence of misconduct on the part of the insurance company if you’re going to hold them accountable via a lawsuit.
The situation can vary from case to case so it’s essential that you speak with your attorney about the details of your insurance company’s response in order to determine if your lawsuit is warranted.

What to Do Before Filing a Lawsuit

Before taking the matter to court with a lawsuit, policyholders must take certain steps. First, you should review your policy so you can understand the coverage, limits and standard exclusions provided. Additionally, you should make sure your vehicle was compliant with the coverage requirements, as many insurers have specific rules on levels of tint, type of stereo system installed, etc. Next, you must document the accident and damages properly so you have sufficient evidence to support your claim. You should take pictures or even videos of the collision scene documenting everything that happened from multiple perspectives. If injuries were sustained, you should record them in a journal. Keep track of all your medical treatment information including dates, locations and a summary of the symptoms you were experiencing. Lastly, you should attempt to contact your insurance adjuster to see if you can reach a settlement without having to sue. Sometimes the losses are small and any discrepancies can be easily worked out through negotiating. If the dispute cannot be settled, there is the option of filing a complaint with the Georgia Department of Insurance.

Lawsuit Filing

Filing a lawsuit against an insurance company can be a complex and lengthy process, but it is sometimes necessary to ensure that you are fairly compensated for your injuries. The first step in filing a lawsuit is to choose an attorney who has experience with lawsuits against insurance companies. Your attorney will be able to guide you through the process and help you make the best decisions for your case.
After you have chosen an attorney, you will need to prepare your case by gathering all of the relevant documentation and information. This may include medical records, police reports, and any witness statements. Your attorney will help you gather this information and build a strong case for your claim.
Once you have prepared your case, you will need to file a complaint with the court. This complaint will outline your case and the relief that you are seeking. After filing the complaint , there is usually a period of discovery where both parties are required to exchange relevant information and evidence. This may include depositions, production of documents, and interrogatories.
After the discovery period is over, your case will likely go to trial. At trial, you and your attorney will present your case to a judge or jury and make your arguments for why you should be compensated. The judge or jury will then make a decision on your case and determine the outcome.
If you are successful in your case, you will likely be awarded a settlement or judgment from the insurance company. This compensation can help you cover your medical bills, lost wages, and other expenses related to your injuries. However, if you are not successful, you may have to pay your attorney and other legal fees out of pocket.

Possible Lawsuit Outcomes

Statistically speaking, about 97% of all car accident cases settle without the need for litigation. But for the other 3%, litigation may be required. Getting where you want to go as quickly and easily as possible is the name of the game when it comes to these kinds of lawsuits.
In some cases, litigation or even a threat of litigation may be enough to get an insurance company to step up and offer you the compensation you need. In fact, most insurers like to avoid litigation, and will do what they can to encourage settlement before going to court.
However, this approach isn’t guaranteed, and depending on the case it may be necessary for you to file a suit against the insurer in the district court in the state where the accident happened. If this becomes necessary, expect the following possible outcomes related to your case:
If you are able to successfully sue an insurance company after a car accident, compensation may be awarded for any past and future medical bills, lost wages from time off work to cope with injuries, compensation for loss of normal life from occurring due to accident injuries, compensation for pain, suffering and inconvenience caused by the accident, compensation for damage to property (i.e., damage to your own vehicle caused by the accident), and in some cases, a punitive award when the defendant is found to have acted especially badly.

Lawsuit Alternatives

Insurance companies often use mediation and arbitration, which are forms of alternative dispute resolution, to resolve claims. In fact, some insurance contracts require parties to mediate or arbitrate disputes in lieu of suing in court.
Mediation
Both sides select a neutral third party, the mediator, who helps them work out temporary solutions to disagreements. Mediation is strictly voluntary. It’s up to the parties how binding or non-binding they want the mediator’s decisions to be. For example, they may agree with their insurers to non-binding decisions, but if they reach that same decision later in court, it will become binding (and vise versa). If mediation doesn’t work, there’s nothing lost. It was voluntary, so it didn’t cost either party anything.
Arbitration
Arbitration is similar to a trial. A neutral third party, the arbitrator, listens to both sides and then makes a decision. Arbitration may or may not include discovery (pre-trial procedures to find more out about the case). Unlike mediation, arbitration is binding. This means that once the arbitrator makes a decision, the parties are compelled to stick to the terms of the judgment. Both sides can still sue in court after arbitration. However, without any new evidence or information coming to light, suing in court does not usually win. Courts will usually only overturn an arbitrator’s decision in these circumstances: Some courts may not allow any appeals from an arbitration award. If you’re unsure, check your local rules.

Consult with a Lawyer

In each state, insurance companies are required to handle claims in good faith and to treat their insureds fairly. Every state has statutes and regulations that govern insurance company behavior. An insurance company may breach these insurance laws, or also some common law duties, in a variety of ways. For example, the insurance company might attempt to settle your claim for a lot less than it is worth. The insurance company might refuse to pay at all for medical treatment or for vehicle repairs. The insurance company might delay payment unreasonably . An insurance company might ask many questions that are not relevant to the claim in an attempt to dig up dirt on the insured. An insurance company might even attempt to deny the claim based on some pretext.
Knowing exactly how your insurance company as well as the liable insurance company violated insurance laws might not be apparent to you. Even if the violations were uncovered, you would still need to know how to best deal with the violations. We highly recommend consulting with a legal professional experienced in insurance disputes to find out exactly what you are entitled to and how to force the insurance company to pay what is rightfully owed to you.