Can You Sue Your Own Car Insurance Company After a Car Accident?
The short answer is yes; you can sue your own insurance company following a car accident. Regardless of who is at fault, your own car insurance provider will be a source for compensation as long as you carry uninsured/underinsured motorist coverage. In some cases, however, the insurance company may deny claims, which is when a personal injury lawyer will have to file a lawsuit against your insurance company.
Uninsured/Underinsured Motorist (UIM) Coverage
UIM coverage protects you in two distinct scenarios. The first and more obvious situation is a car accident in which the other vehicle (presumably the at-fault vehicle) is owned and operated by an uninsured party. After every accident, the Dolman Law Group will investigate both the owner and the operator/driver of the at-fault vehicle (often the same person). In such a situation, UIM coverage will form a basis of coverage for the harms and losses you sustain as a result of the negligence exhibited by an uninsured driver or owner.
The less obvious scenario exists when the at-fault party (both driver and owner) has bodily injury coverage, but such coverage is insufficient to properly compensate for your injuries and/or medical bills.
For example, imagine you are in an accident that results in injuries that require surgical intervention. The surgery may cost over $30,000.00 due to the fees for the surgeon, anesthesiologist, and the surgery center or hospital. If the at-fault party only has $10,000.00 or even $25,000.00 in bodily injury coverage, they would be underinsured.
UIM coverage also covers anticipated future medical treatment recommended by a treating physician, surgeon, or expert witness. This means UIM could cover a surgery you might need in a few years, or one you will definitely need after a set period, which might occur after the case is closed. That’s why taking future medical care into account is so important.
In such a case, we may file suit against the other driver’s insurer and your insurer to ensure proper financial compensation.
Circumstances that Lead You to Sue
The following instances may push you to choose to sue your own insurance company:
1. Not Being Offered a Fair Compensation Package
Unless you meet specific requirements and prove that the insurance company is liable for the type of damages you seek, you may not be able to file a personal injury claim against your insurance company. Sometimes these companies act when placed under legal pressure; if they wrongfully refuse to pay under the policy, you may sue not only for the compensation owed but also for damages for emotional distress.
Other damages you may be eligible for may include:
- Legal costs
- Medical bills
- Property damage
- Loss of use of your home or car
- Loss of future wages
- Pain and suffering
Keep in mind that pain and suffering vary from case to case. When suing for pain and suffering, you will have to determine how your injuries negatively affect your lifestyle, while emotional distress is a separate harm you may also claim. When insurance companies see a strong case against them for pain and suffering, they may offer a settlement to prevent you from going to court.
2. Issues with Uninsured Motorists Causing Your Injuries and Damages
If you or your loved one is involved in a car wreck and the uninsured driver causes your injuries, you may choose to file a claim against your own insurance company. In Florida, underinsured and uninsured motorist coverage is designed to protect you if the at-fault person has little insurance coverage or no bodily liability insurance to compensate for your injuries or damages.
If your auto insurance policy or your own policy provides UM/UIM benefits and the insurer fails to pay owed damages, you may sue for breach of contract. Florida is a “no-fault state,” which means you must claim some of your lost wages and medical bills under your Personal Injury Protection (PIP) insurance. PIP is the main way to protect yourself if you are injured in a car accident because it enables you to cover up to 80% of your medical expenses regardless of who is at fault.
Additionally, you can elect to add UM coverage to your already existing insurance policy. This allows you to seek compensation for injuries and damages sustained after the other driver has no insurance. You can also add UIM coverage when the at-fault driver lacks enough insurance to cover your losses.
3. Suing Your Insurance Company for Denying Claims
Insurers must avoid unfair trade practices, adhere to policy rules, and act in good faith. An auto insurance company has a legal obligation to handle claims fairly, and a wrongful denial can support legal action, including a breach-of-contract claim when benefits owed under the policy are refused. If you feel inadequately compensated, contact an attorney or your state’s insurance department and ask for the proper guidance or a second opinion on how a third party could have reviewed the case to hold the insurer accountable.
Keep in mind that some reasons for denying a claim may be legitimate. Before you file suit, document all interactions with your own insurance provider. Common causes may include:
- Claiming errors on your part on behalf of the insurance company
- Bad faith tactics, which may support a bad faith lawsuit and, in cases of malicious misconduct, punitive damages
- Lack of enough insurance coverage
In Florida, you generally have five years to sue for breach of contract.
4. When You Are Involved in a Hit-and-Run Accident
If the hit-and-run driver flees from the scene and is not identified, or if they have no insurance coverage, you may have to use your Uninsured Motorist Bodily Injury coverage for your damages and injuries through your own car insurance company. In addition to that, you will need to file a claim against your own Uninsured Motorist Insurance coverage if you fail to identify the at-fault person.
However, the policy requires you to report the accident to the police first. By doing so, your own insurer will act as the liability insurance provider for the at-fault driver. Collision coverage may also help pay for vehicle damage while the uninsured-driver claim is being investigated. You must provide the following information in order to win this type of lawsuit:
- Proof that the hit-and-run driver caused the accident
- Verification that you indeed have insurance with the insurance provider
- Proof of the severe injuries and damages that you suffered due to the accident
- Basic crash details, including the date, time, and location of the accident, are submitted with the claim
Dolman Law Group Can Help
Before filing a lawsuit against your insurance company, consult an experienced attorney and, when needed, accident lawyers who handle disputes with an insurance company after a car accident. Our law firm understands how insurance companies operate and that cases against them can be challenging, which is why we at the Dolman Law Group are here to help you; our legal team can help hold the insurer accountable and pursue full compensation when it refuses to honor coverage. Contact us today at 833-552-7274 to learn more about our services and schedule a free consultation and free case review.
