Finances

Sue an insurance company? Yes you can, in some circumstances

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This guide outlines when you can sue an insurance company, and tips to help you prepare successfully for the lawsuit.

Suppose you have a personal injury claim that has been wrongfully denied, or you are currently in the claim process. When dealing with an insurance company, you must be aware of all the scenarios and be prepared if you need to file a lawsuit. You can click for more here if you want to learn more about how to sue an insurance company.

When can you sue an insurance company?

It is critical to know that you can sue an insurance company if they violated or failed the terms of your insurance policy. An insurer must abide by the contract terms, avoid unfair trade practices, and act in good faith. While their duties differ from state to state, the following obligations require the insurance company to refrain from the following:

  • Refuse to pay a claim when liability is crystal clear
  • Deny a claim with no explanation for the denial
  • Deny a claim based on application misstatement after the period of contestability has passed
  • Fail to approve or deny a claim without a reasonable timeframe
  • Delay the investigation of the claim
  • Fail to defend you in a liability lawsuit where at least one of the claims is covered by your liability policy

Since an insurance policy is a contract, every state allows for a breach of contract action. You can even pursue a bad faith tort lawsuit or sue an insurance company under your state’s unfair trade practices laws.

What Are The Risks of Going to Court against Your Insurance Company?

There are a few risks associated with going to court against your insurance company. First, if you lose your case, you may have to pay the insurance company’s legal fees and other costs. Second, even if you win your case, the judge may not award you the full amount of money you’re asking for.

Finally, if you go to trial, it will take longer to resolve your claim than if you had simply accepted the insurance company’s initial offer. However, if you feel that the insurance company has wrongfully denied your claim or delayed paying you what you’re owed, going to court may be the best option for getting the compensation you deserve.

Preparing to sue an insurance company

Whether you are thinking about suing your insurance company or not, it is best to be prepared and keep detailed records. Here are some tips for when you take your insurer to court:

#1. Seek legal assistance from an attorney with experience in insurance litigation

Insurance law is very complex and requires an experienced insurance litigation attorney to understand its nuances fully. It is highly recommended you look for attorneys with trial experience, as they may impact your recovery through a settlement. Having experienced legal assistance by your side early on in the claim process will significantly increase the chances of your success and help you understand your claim’s status when you sue an insurance company.

#2. Document all your communication with the insurer

By meticulously documenting your communications with the insurer, you will be able to refer to an accurate timeline of events.

#3. Document details related to your claim

The same goes for all the documents you have sent to or received from the insurer. You can include the letter from the insurer, letters in response, a copy of any claim forms you filled out, or any enclosures you have sent with the letters, when you sue an insurance company.

#4. Prepare your case for appeal or litigation

Make sure to keep copies of the documents related to your claim. If you wish to claim damages beyond what your policy benefits provide, you must gather evidence and present it to your attorney. Additionally, keep track of all your expenses, including medical bills, lost wages, repair bills, or attorney’s fees.

#5. Be prepared for the long haul

Once your insurer denies your claim, you should prepare for a long process to sue an insurance company. Generally, insurance companies have all the resources to sustain litigation for as long as possible. This is to try and wear you down and get you to take whatever they offer you, which is likely to be less than what you deserve. If you decide to sue your insurer, choose an attorney with extensive experience in insurance litigation.

Is it worth it?

Most people know that they sue an insurance company if they feel like they have been wronged. However, many people are unsure if this is worth their time and effort. After all, going to court can be a long and drawn-out process, and it may not even result in the outcome you were hoping for. So, is it worth it to take your insurance company to court?

Well, that depends on a few different factors. First of all, you will need to decide if you have a case against your insurance company. If you do not have a strong case, it is probably not worth your time to go to court. However, if you feel you have been wronged and have a strong case, it may be worth your while to pursue legal action.

Another factor to consider is the amount of money you seek from your insurance company. If you are only seeking a small amount of money, it is probably not worth your time in court to sue an insurance company. However, if you seek a large sum of money, it may be worth your while to take your insurance company to court.

Finally, you will need to consider the time commitment that going to court will require. If you do not have a lot of free time, then it is probably not worth your while to take your insurance company to court. However, if you have the time and energy to pursue your case, it may be worth your while to take your insurance company to court.

Overall, there is no right or wrong answer when it comes to whether or not it is worth it to take your insurance company to court. It depends on your situation and what you are hoping to accomplish. If you have a strong case against your insurance company and seek a large amount of money, it may be worth your while to go to court. However, if you do not have a strong case and only seek a small amount of money, then going to court may not be worth your time. Ultimately, whether or not it is worth it to take your insurance company to court is up to you.

Conclusion

If you’ve been wronged by your insurance company, taking them to court may be the best way to get the justice and compensation you deserve. With the help of a skilled attorney, you can build a strong case and fight for the outcome you deserve. Though going to court can be stressful, it may be the best way to protect your rights and get the compensation you need.

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