Uh oh… The insurance company denied your claim. Or maybe they made you a low ball offer that won’t even pay your medical bills.

Either way, it stings.

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Fact: Insurance companies are a business. They exist to pay out as little money as possible — even if that means cheating real victims of car accidents. If that happens to you, suing may be your only option.

A lawsuit against insurance sounds scary. But it doesn’t have to be.

Learn step-by-step exactly how a lawsuit against an insurance company unfolds from a car accident, why you would ever want to file one, and what to expect during the process.

Let’s jump in!

Here’s the breakdown:

Why Lawsuits Against Insurance Companies Happen
When To File A Lawsuit After A Car Accident
The Step-By-Step Lawsuit Process
What You Could Actually Win
Common Mistakes That Can Tank A Case

Why Lawsuits Against Insurance Companies Happen

A car accident lawsuit usually isn’t the first move…

The majority of claims are settled with the insurance company. Surprisingly, only 3 to 5 percent of car accidents result in a lawsuit. So what causes that small percentage to go to court?

Here are some common tactics insurance companies will use to lowball you:

Deny the claim outright
Drag out the process for months
Offer a settlement way below the case value
Argue that the victim was actually at fault
Question the severity of the injuries

When this occurs with larger insurers, having the right legal guidance makes all the difference. A helpful resource on filing a lawsuit against State Farm walks accident victims through the claims process step-by-step. State Farm is one of the largest auto insurers in the nation, and knowing how to approach claims with major carriers gives victims a real shot at the compensation they deserve. That’s precisely why many accident victims benefit from professional legal action to stand up for themselves.

The bottom line?

If insurance companies won’t act fairly, litigation is the stick that will make them.

When To File A Lawsuit After A Car Accident

Not all car accidents warrant a lawsuit. There are certain signs that it may be time to move forward.

The most common reasons to file:

The insurance company denied the claim
The settlement offer is too low to cover medical costs
The at-fault driver doesn’t have enough coverage
Liability is being disputed
Injuries are serious or permanent

Time is also important. Every state has something called a statute of limitations. That’s just lawyer-talk for deadline. If you miss it, you’re dead in the water.

Most states allow between 1-4 years for car accident victims to file a lawsuit. Statutes typically begin running on the day of the accident, so delaying can be one of the worst mistakes a victim can make.

If the insurance company is bullying you, consulting with an attorney early provides the best opportunity to meet filing deadlines.

The Step-By-Step Lawsuit Process

Here’s what actually happens when a lawsuit gets filed…

Step 1: Retain a personal injury attorney. Big step. According to statistics, those who have an attorney receive settlements that are nearly THREE TIMES higher than those who don’t. That should convince you to call one.

Step 2: File the complaint. Your lawyer will draft a document known as a complaint. The complaint is filed with the court and sets forth the facts, injuries and demands for compensation.

Step 3: Discovery. Both sides are required to exchange information. This could be medical records, police reports of the accident, witness statements and depositions. This stage can last several months.

Step 4: Negotiation and mediation. The majority of cases are resolved during this phase. Once an insurance company understands the evidence, they will likely make you a fair offer.

Step 5: Trial (if necessary). If the parties don’t agree, the case goes before a judge or jury. Trials are rare — most car accident lawsuits never reach trial.

It could take several months to a few years depending on the circumstances of your case.

What You Could Actually Win

Now to the part everyone wants to know about… The money.

A car accident lawsuit can recover damages for:

Medical bills (past and future)
Lost wages
Property damage
Pain and suffering
Long-term disability or rehabilitation

How much can one realistically hope to receive? It depends. Using recent statistics, the average car accident injury payout is $30,416. Severe cases with permanent injury or permanent disability can settle for much higher.

Did you know… Here’s something interesting. Investors who waited for a better offer wound up with substantially larger settlements than investors who accepted the first offer.

So don’t accept the first lowball settlement.

It’s almost always less than the case is actually worth.

Common Mistakes That Can Tank A Case

The best case can be undone by simple errors. Eliminate them completely.

Talking To The Adjuster Without A Lawyer

Insurance adjusters are taught to obtain damaging statements. Your off-the-cuff “I’m doing okay” could be used to prove your injuries weren’t that bad.

Always run statements through a lawyer first.

Skipping Medical Treatment

Canceling doctor appointments is free money for the insurance company. They can use it against you to say your injuries weren’t serious.

Continue treatments even when you feel better. It creates a paper trail to support your case.

Posting On Social Media

A photo of you smiling at a BBQ can ruin your case. Insurance companies scour social media for reasons to deny car accident injury claims.

Stay off social during a pending lawsuit. Seriously.

Waiting Too Long

Statute of limitations are merciless. When they run, the case is gone — forever. Even if you had the best case ever.

Talk to a lawyer as soon as possible after the accident.

Final Thoughts

Suing insurance following a car accident is no one’s idea of a good time. Sometimes it’s necessary to level the playing field against an obstinate insurance company.

To recap quickly:

Lawsuits happen when insurance companies deny claims or lowball victims
Hiring a lawyer dramatically increases payout amounts
The process takes months but most cases settle before trial
Patience and solid evidence are the keys to maximising the settlement
Don’t make rookie mistakes that hand easy wins to the insurance company

Having a car accident is stressful enough. Having to battle your insurance company afterwards is the last thing you want to do.

Understanding the process though makes it a lot easier. And with the right attorney in your corner, even the hardest insurance lawsuit can end in a very favorable outcome.