When you pay for car insurance, you expect your provider to be there when you need them most. Unfortunately, that’s not always the case. From lowball settlements to outright denial of valid claims, many policyholders feel frustrated and overwhelmed when their insurance company denies an accident claim. If this sounds familiar, you may have legal grounds for suing a car insurance company for acting in bad faith.
Bad faith insurance claims arise when an insurer fails to uphold its legal duty to handle your claim fairly and in good faith. Whether they delayed payment without reason, ignored critical evidence, or wrongfully denied your claim, these actions can justify filing a car insurance lawsuit in Florida.
This guide explains how to sue an insurance company, prove bad faith insurance, and what steps to take if your insurer refuses to cooperate. At LJW Legal, our attorneys have extensive experience holding insurers accountable. We’re here to help you fight for the compensation and justice you deserve. However, due to Florida’s statute of limitations in personal injury cases, you must act quickly.
Call 954-388-9841 about a free case evaluation.
What to Do After a Car Accident
The steps you take immediately after a car accident can significantly affect your ability to recover compensation, especially if your insurance company denies your accident claim later. Acting quickly and documenting everything helps protect your health and legal rights.
Here are the proper steps to take following an accident:
- Get medical attention: Even if injuries seem minor, get checked by a doctor. Medical records are critical in both injury claims and car insurance lawsuits.
- Call the police: A police report is an official incident record and can help support your version of events.
- Document the scene: Take photos of the vehicles, damage, injuries, license plates, and road conditions.
- Collect information: Exchange contact and insurance details with all parties involved, and gather names of witnesses.
- Notify your insurance company: Report the accident as soon as possible, but be cautious with what you say. Avoid admitting fault.
- Track all expenses: Save bills, repair invoices, and receipts for your accident and recovery.
If your insurer fails to respond fairly, these early actions can become key evidence in a bad faith insurance claim or car insurance lawsuit in Florida.
Immediate Steps to Take After an Accident
Your first priority after any accident should be seeking medical care, even if you think your injuries are not serious. Adrenaline can temporarily mask the pain and hide the seriousness of your injury. In addition, you may not notice whiplash and other neck and back injuries until the morning after the accident.
In addition to seeking medical care, be sure to alert law enforcement and file a report immediately. This will serve as key documentation later in the insurance claim process and will be absolutely crucial if you decide to sue the insurance company.
How Long Do You Have to Sue an Insurance Company after an Accident?
The time limit to sue is called the statute of limitations. In Florida, you generally have two years from the date of the car accident to sue an insurance company for personal injury claims. However, there are some exceptions to this rule.
Exceptions to the Two-Year Statute of Limitations
Although you have two years to file a lawsuit for injuries as a result of a car accident, this applies mainly to legal action based on negligence. Unless there are extraordinary circumstances, a court will not hear an injury case after four years.
Wrongful Death Lawsuits
When a loved one dies in a car accident, it is considered a wrongful death car accident, and the statute of limitations is two years after the passing of the injured person.
Defective Product Lawsuits
If the accident was caused by a defective car or car part, the manufacturer can be sued. The lawsuit must follow the same statute of limitations as any other personal injury (two years) or wrongful death (two years) case.
Government Lawsuits
In a case where the driver who causes the accident is a government employee, or if the accident is due to poorly maintained roads, victims can sue the government. The statute of limitations for this is three years.
Understanding Florida’s No-Fault Insurance Laws
Florida follows a no-fault insurance system, which means that after a car accident, your insurance company, regardless of who caused the crash, is responsible for covering certain expenses through Personal Injury Protection (PIP). PIP benefits typically include:
- Medical Costs
- Lost Wages
- Specific Related Expenses
However, each insurance policy has a limit, or a “cap”, on the coverage and compensation they’ll provide in the event of an accident. This can leave victims without the money they need to properly recover following a crash.
Additionally, insurance companies sometimes deny claims, delay payments, or offer far less than what victims are entitled to. In these cases, filing a bad faith insurance claim or suing a car insurance company may become necessary.
It’s important to understand that PIP does not cover common compensatory elements, including:
- Pain and Suffering
- Property Damage
- Cost of Repairs
- Medical Treatment Beyond $10,000
- Injuries from Intentional Acts
Generally, victims must meet serious injury thresholds before they can step outside the no-fault system and pursue a liability claim against another driver. If your insurance company denies an accident claim unjustly or refuses to pay what is owed under PIP, this may be grounds for a car insurance lawsuit in Florida.
Knowing your rights under no-fault law is essential to protecting yourself after an accident and holding insurers accountable when they don’t play by the rules.
Legal Grounds for Suing a Car Insurance Company
While many insurance claims are resolved without issue, there are times when a policyholder must consider suing a car insurance company. Florida law provides two primary legal pathways to hold insurers accountable: breach of contract and bad faith insurance claims.
Understanding the difference between the two is critical when evaluating your legal options.
Breach of Insurance Contract
Every insurance policy is a legally binding contract. If your insurer fails to fulfill its obligations, such as refusing to pay a valid claim, delaying payment without justification, or misinterpreting policy terms, it may be in breach of contract. This gives you the right to file a car insurance lawsuit in Florida to recover the compensation you were promised under the policy.
Breach of contract claims focus on the insurer’s failure to uphold specific terms of the agreement, regardless of whether they acted in bad faith. These cases are often easier to prove and may lead to damages equal to the policy benefits you were denied.
Bad Faith Insurance Practices
Bad faith insurance claims go a step further, alleging that the insurer didn’t just make a mistake, but acted dishonestly or unreasonably. Common examples include:
- Intentionally undervaluing your claim
- Refusing to investigate your accident properly
- Ignoring submitted evidence
- Unreasonable delays or stalling tactics
- Denying your claim without a valid explanation
To succeed in a bad faith claim, you must understand how to prove bad faith insurance, which typically involves showing the insurer had no reasonable basis to deny or delay your claim and failed to act in your best interest as required by law.
In Florida, if you win a bad faith lawsuit, you may be entitled to additional damages beyond the policy limits, including compensation for emotional distress, legal fees, and, in some cases, punitive damages.
Challenges When Suing an Insurance Company
Filing a car insurance lawsuit in Florida is not always straightforward. Insurance companies have vast legal resources and are often prepared to dispute claims aggressively. Understanding the potential obstacles can help you prepare and protect your rights with the right legal support.
Common challenges when suing an insurance company often include:
- Proving bad faith: It’s not enough to show the insurer was wrong — you must show they acted unreasonably or dishonestly.
- Complex policy language: Insurance contracts with vague or confusing terms are often written to favor the insurer.
- Delays and tactics: Insurers may use stalling strategies to pressure you into settling for less.
- Burden of proof: The responsibility to prove breach or bad faith falls on you as the policyholder.
- Limited access to evidence: Insurers may withhold internal documents unless forced through legal discovery.
Having an experienced attorney can make all the difference in overcoming these hurdles and ensuring your bad faith insurance claim is taken seriously. The team at LJW Law is ready to fight for you.
Compensation and Damages You May Be Entitled To
When you pursue a car insurance lawsuit in Florida, your goal is to recover the wrongfully withheld compensation, and, in some cases, more.
Depending on the details of your case, you may be eligible for both compensatory and punitive damages, especially in situations involving bad-faith insurance claims.
Types of Compensatory Damages
Compensatory damages are designed to make you whole again by covering the actual losses you’ve suffered due to the insurer’s misconduct. It’s a monetary award for the damage done and suffering imposed by the actions or negligence of another person (or driver).
These monetary awards may include:
- Unpaid policy benefits: The original amount the insurer refused to pay.
- Medical expenses: Out-of-pocket costs from accident-related care.
- Repair or replacement costs: Damage to your vehicle or property.
- Lost wages: Income lost while dealing with the aftermath of the accident.
- Attorney’s fees and legal costs: In certain bad-faith cases, Florida law allows recovery of legal expenses.
- Emotional distress: Anxiety, frustration, or mental anguish caused by the insurer’s refusal to act in good faith.
Understanding Punitive Damages
Punitive damages are not about reimbursement — they’re about punishment. A judge may award these damages if you prove that the insurer acted with gross misconduct, malice, or intentional deception.
While less common, they can significantly increase the value of your bad faith insurance claim and convey that negligent practices have consequences. Less than 5% of all personal injury claim verdicts result in awards for punitive damages, as they are reserved for the most egregious cases.
Because these cases are complex, working with a skilled attorney who can sue an insurance company and argue for full damages is critical.
How Long Should a Settlement Take When Suing an Insurance Company After a Car Accident?
There is no real way to predict how long your case will take to settle. It often hinges on a variety of factors, including:
- The strength of your case
- How large a sum you are seeking
- The nature and extent of your injuries
Some cases settle in just a few months, while others take years to resolve. Generally, lawsuits that proceed to trial take longer than cases where the victim accepts a settlement.
Choose the Right Personal Injury Lawyer to Fight for You
If you or a loved one has been injured in a car accident and are considering suing a car insurance company, contact a personal injury lawyer in Pompano Beach right away. LJW Legal will work tirelessly to get the settlement you deserve.
