Steps to Sue a Car Insurance Company Successfully

Learn When You Can Sue

There are many situations in which you can and should sue your insurance company rather than allowing a bad settlement offer, the denials to stand, or their bad faith actions cause you to suffer more pain and suffering. The most common scenarios involve denied claims , low settlement offers, and bad faith actions (such as demanding an exam under oath and claiming fraud). While these situations are rather common, the situation always needs to be examined by an attorney to see if the legal requirements are met.

Review Your Insurance Policy

In addition to the policy held by the driver who caused the accident, you should carefully scrutinize your own policy. Read the document thoroughly, paying particular attention to any statements you did not previously know existed. Look for sections that could affect your case, such as dispute resolution and coverage limits. Many people are unaware of these policy details and they can have a detrimental impact on your outcome if a dispute arises and your insurance provider is on the opposing side.

Collect Key Evidence

You will need to collect the following types of essential evidence to back up your lawsuit:
Accident reports. A police report about your car accident will have all the details you need.
Correspondences with the insurer. Save all insurance correspondences, and use them to show a pattern of violations by the insurance company.
Photographs. Pictures of your injuries and your property damage can provide hard evidence of the extent of your injuries and the losses you suffered.
Witness statements. Eyewitness testimony about the accident can be critical to proving fault in an auto injury case. If police talked to witnesses at the accident scene, and then you delay in filing a lawsuit (beyond six months in Pennsylvania), those witnesses could be gone and unable to testify later.

Speak to a Lawyer

A lawyer experienced in handling these types of matters can sort out any complexities in your case that you might not even be aware of. An insurance dispute case can become very complicated, very quickly, and the last thing you want to do is set yourself up for failure by improperly presenting your case. Insurance companies know the law as well as the legal process and they will use this knowledge to their advantage to try and minimize payouts or avoid paying altogether. With the assistance of a good attorney, you can level the playing field. An attorney will review all evidence related to your case and will often consult professionals who will determine what your losses are worth. Lawyers know just how much information to present to the judge or jury to persuade them to award the compensation you deserve.

File a Case in Court

If the insurer has continued to not respond or offer a satisfactory settlement, you can pursue a lawsuit directly against the insurance company. In order to file a lawsuit against the insurance provider, you will need to prepare a complaint, which is a legal document that tells the court what the problem is, and explain what type of compensation you are seeking. You will then need to determine if the case should be heard in front of a judge or jury, and get the paperwork in order to file your case within your state’s statutes of limitation.
Preparing a Complaint
In order to sue the insurance provider, you must be able to prove that the provider was in breach of their contract. However, if you signed up for additional coverage for certain injuries or damage, you may be able to sue them for a claim that they can’t fulfill. Your complaint must include the name and contact information for the insurance company you’re suing, as well as the details about your policy coverage, and a strong explanation of the accident and its damages. You don’t have to file a complaint by yourself. A car crash lawyer can help you file the documents, as well as prepare you for case presentation and discovery .
Choosing a Jury or Judge
When filing a lawsuit, you will need to decide if you will have the case tried in front of a judge only, or if you would like a jury trial. With a court bench trial, a judge will hear the evidence and make a judgment. Since a judge has more experience with these types of cases, they might be able to catch what a jury would overlook. However, you might still be judged for the accident — which could negatively affect the case. Jury trials can take much longer and can be more expensive than a court bench trial. If you choose a jury trial, you will be able to select a jury while you prepare for the case. During the jury selection process, both you and the insurance company will have an opportunity to reject certain jurors.
Filing Fees and Deadlines
Court filing fees can vary. If you’re not able to pay for the fees, ask your local courthouse if they have a procedure to file with the fee waiver. These fees are typically paid at the same time that the documents are filed. The statute of limitations for suing an insurance company varies in each state, so you should make sure that your deadline is not up before you file. A car crash lawyer can help you determine when you need to file to avoid losing your ability to sue.

Prepare for Lawsuit

If you’ve gone through the initial steps outlined above and the insurance company is still refusing to pay you what you’re owed, the next step in most cases will be to bring the claim to a lawsuit. Even if a case ultimately has to go to litigation, most have the possibility of being settled beforehand through careful negotiation.
Once your claim moves forward to litigation, and even leading up to that point, you can generally expect to experience the following:
Discovery
Once a lawsuit has been filed, each party will conduct what is called "discovery." This consists of exchanging information and evidence between each party. This will take the form of requests for documents, answers to questions that each party has prepared, an inspection of a physical setting, or interrogatories. The idea will be to collect the largest possible pool of information in order to strengthen the case. For instance, if you are filing suit because your insurance company wrongfully denied payment, you might be able to obtain a copy of your policy or investigate why it was rejected. If you are asking for payment for a car accident claim, it may be pertinent to collect photographs of the scene, reports of the accident, medical treatment receipts, etc. The idea is to be as thorough as possible in this stage of the process.
Depositions
In addition to written discovery, a lawyer on one side may take the deposition of someone on the other side. A deposition is when a person gives oral information (under oath) that will be used at trial. A deposition is recorded by a court reporter and turned into a transcript. It is a chance for both sides to gather a large body of evidence concerning the case.
Settlement Negotiations
Even if the case proceeds to litigation, it is important to be prepared to enter negotiations. Even as both sides are going through the discovery process, settlement negotiations may be an option. The lawyer on the other side may extend an offer to settle the case outside of court. It is up to you to accept or reject that offer, but make sure you discuss it with your legal counsel beforehand. You may find that the amount of your settlement offer is substandard compared to how much your case would be worth in a ruling. If a case seems like it would be worth pursuing beyond the offer, you can continue to negotiate and see if you reach an agreeable amount. If not, you can move forward with the case.

Learn About Possible Conclusions

The outcome of a lawsuit against a car insurance company may vary significantly. Most often, the case will settle before it reaches trial. Plaintiffs get compensated without the time and expense of going to court. Neither side has to prove anything in a trial so both may consider that a reasonable outcome. Another scenario involves the plaintiff winning the case. The car insurance company is then obligated to pay a specified amount of damages. Depending on the claim, this could be a considerable sum. The insurance company also has to pay the plaintiff’s legal fees and court costs. Winning the case means a greater amount of compensation, but there are benefits to settling as well. Plaintiff cases sometimes lose. The car insurance company will gain nothing from losing. A judge’s ruling in the defendant’s favor may be the outflow of a case that was never really strong in the first place. The plaintiff, on the other hand , may have introduced weaknesses in the case that lead to the loss. Still, a plaintiff may gain something through the case. He or she gained a better awareness of the facts regarding the car accident. Sometimes, the plaintiff makes the decision to settle out of court. In general, this means the plaintiff received payment for damages without accepting fault. After settling, there is no going back for more. The plaintiff signed off on the case, probably with paperwork confirming the plaintiff understands he or she isn’t entitled to additional compensation even if the damages turn out to be greater after the settlement. Settling may not be the best option. When considering a settlement, plaintiffs may want to evaluate factors like the extent of injuries and whether the bill is likely to increase. In cases where damages are high, forcing a resolution of the case can be better for a plaintiff than accepting a lower amount through settlement.