Home Car insurance Car insurance claims You did me wrong: What to do before you sue your insurer You did me wrong: What to do before you sue your insurer View Carriers Please enter valid zip Compare top carriers in your area Written by Emmet Pierce Reviewed by Michelle Megna Michelle Megna Michelle, the former editorial director, insurance, at QuinStreet, is a writer, editor and expert on car insurance and personal finance. Prior to joining QuinStreet, she reported and edited articles on technology, lifestyle, education and government for magazines, websites and major newspapers, including the New York Daily News. Posted on: March 5, 2012 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Are you steaming mad about the way your insuranceclaim was handled? Before you commit to taking your case to court, make sure this is a battle for which you’re truly prepared. Lawsuits can be very costly in terms of time and energy, as well as cash. They often take a heavy emotional toll on the participants. So don’t enter into litigation lightly. If there is a chance of resolving the dispute amicably, consider that option. You may never have gone to court before, but insurance companies do it all the time. Their lawyers know the ins and outs of the legal system Even so, the last thing an insurance company wants to do is get into litigation with one of its customers, says Peter Foley, vice president for claims administration for the American Insurance Association (AIA) trade group. “Typically, a claim that goes into litigation, just from a handling standpoint, costs twice as much as one that doesn’t for an insurance company,” he says. “We don’t go looking for lawsuits.” That’s why most insurance disputes don’t result in a lawsuit, and the bulk of those that do are settled before reaching trial, he says. Here are steps you can take before resting your fate on the scales of justice. 1. Read your insurance policy This sounds like a no-brainer, but people often neglect to read their policies. A lawsuit will do you no good if the insurer did not violate the terms of your policy. A policy is a contract and you’re responsible for understanding its terms. It doesn’t matter what your agent told you or what you heard in a clever television ad; the rules your company must follow are within the document you signed. “A lot of times, people do not have the insurance document,” says Edie Mermelstein, a California attorney who handles insurance and consumer issues in Los Angeles and Orange counties. “You need to know up front what your insurance company has agreed to in writing. The written word is what the company is going to be held to.” According to Michael Cohen, a Los Angeles attorney who litigates against insurers, familiarity with insurance policies is a rare thing among consumers. “Most people even have trouble finding their policies.” If you don’t understand your policy, consult your agent. 2. Consider your chances of winning Never go to court unless you believe you have a very good chance of winning. The legal process is too costly to use merely to prove a point or assert your rights. If you file a suit to punish your insurer for things that went wrong during the claims process, you may end up being the one who is punished by wasting time and money. “The civil justice system is highly imperfect,” says Cohen. “There is not always complete justice.” 3. Work in good faith with your insurance company Florida public claims adjuster Ron Papa, who represents consumers, says you always should give your insurance company a chance “to right the wrong” before resorting to a lawsuit. Frequently, policies contain dispute-resolution language. Often the language is nonbinding, however, and policyholders proceed directly into court without seeking a resolution, says Foley. He recommends that you give the process a chance. QuickTake Car insurance claims: Who gets the claims check? Does insurance cover damage from road debris? What happens if you keep auto insurance claim money instead of making repairs? 7 magic words to expedite insurance claims Want to sue your insurance company? 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Find a lawyer with true grit If you decide to go forward with your lawsuit, you may need to find an attorney who will work on a contingency basis, taking his or her pay out of any settlement you win. If you agree to pay your lawyer this way, the fee will be a percentage of whatever is awarded. In highly adversarial insurance disputes, lawsuits can drag on for years, however. While a large insurance company can absorb the legal fees, many plaintiff attorneys get restless. They may start worrying about all the time they are investing and whether they ever will be paid. This makes them prone to recommending settlements that may not be in your best interest. Find an advocate who isn’t afraid to go up against the big guys. “You need someone who has a track record for sticking with it,” says Cohen. 5. Check your bank account Your lawyer may agree to work on a contingency basis, but you still may incur expenses. If you bring in expert witnesses, they will charge for their services. Attorneys “almost always want expenses to be paid [by their client], but there are attorneys who will take it on a full contingency,” says Papa. Cohen says attorneys have to be prudent when deferring payment. “We look at it on a case-by-case basis,” he says. “There are cases where we will advance expenses. There are cases where we don’t.” You may be on a tight budget, but your insurance company won’t face this problem. It will spend whatever it takes, as long as it feels that victory is likely. Before you get started, have a serious chat with your lawyer about how much money you are likely to spend. 6. Get it in writing Even if you think you have a good reason to sue, your insurance company will work to prove that whatever happened to cause your damages was not its fault. So get things in writing from the beginning. If representatives from your insurer make promises — such as to back up the work of preferred provider contractors — make sure you can prove it in court. If it is your word against theirs, that probably won’t be enough to sway a jury. If you have a letter to back up your claim, you’ll fare much better. If you hire an experienced public claims adjuster to make sure your insurer lives up to the terms of your policy, you likely will have a written record of how your claim was handled, says Steven Venook, a public adjuster in Florida. “We keep a detailed timeline of events prior to the attorneys getting involved.” 7. Keep a journal Memories get hazy after a few months, but you’ll need to provide an accurate narrative in order to convince a judge or jury that you deserve compensation. If you misrepresent the facts, your case could fall apart. That’s why you’ll need to keep a diary that details all of your dealings with your insurance company. Start on the day you file your claim, even if you think a lawsuit is unlikely. Get a notebook and start logging conversations with names and dates. Be sure to write down any failings on your insurer’s part, but don’t exaggerate or embellish. You’ll do better in court if you stick to the hard facts. “Write down all of your contacts,” says Mermelstein. “A timeline is very helpful.” 8. Be patient, lawsuits take time Lawsuits often become waiting games. It easily can take a year or more to resolve a case. Attorneys sometimes use delaying tactics to throw their opponents off their game or build up their own hourly fees. Expect these kinds of legal maneuvers and don’t let them shake you. In case you missed it Best Car Insurance Companies of 2024 Car insurance rates by state in 2024 What is full coverage car insurance? How much does car insurance cost for seniors in 2024? A complete guide to adding a teenager to your car insurance policy in 2024 What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Used car insurance costs: Most and least expensive models to insure The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to car insurance discounts Proper insurance coverage for college-bound children How to read your auto insurance policy A complete list of car insurance companies New driver insurance grace period: What you need to know How much do insurance agents make? Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 On this page 1. Read your insurance policy2. Consider your chances of winning3. Work in good faith with your insurance company4. Find a lawyer with true grit5. Check your bank account6. Get it in writing7. Keep a journal 8. Be patient, lawsuits take time ZIP Code Please enter valid ZIP See rates