suing an insurance company

5 Things to Know Before Suing an Insurance Company

What happens when your insurance company denies a reasonable claim, charges you an unfair amount, or drops coverage without warning?

Well, suing an insurance company might seem drastic, but it is a possibility. When you keep experiencing unfair treatment, the threat of a lawsuit might be the only power you can wield over the situation. We’ll walk you through what you need to know before it happens.

So if you’ve ever wondered how to sue an insurance company, keep reading.

1. Negotiate First

Filing a lawsuit takes time and money—there’s no skirting around that fact. So it might be a good idea to explore your negotiation options before entering into the lawsuit territory.

However, this doesn’t mean you need to do it alone. You can still contact specialized attorneys like the folks at to get some help and guidance. Getting in touch early on might also make things easier if things do escalate to a more serious level.

2. Your Claims Agent Won’t Be There For You

Once you decide to sue your insurance company, your claims agent will no longer be on your side. In fact, don’t be surprised if representatives from the company stop talking to you at all.

In the end, the employees of the insurance company work for the company, not you. Even if they’ve developed a kind and helpful rapport with you, they will likely stop helping out once you decide to sue.

3. The Statute of Limitations

Look into the details of your insurance policy to find something called a statute of limitations. This is a time limit or deadline by which you need to file a lawsuit in order for it to go through. It’ll be tied to the specifics of the case—usually one year after the date of a problem event.

You will likely need a lawyer to do this step for you, which is another reason why early contact can be useful.

4. Mediation is Still a Possibility

Even if your initial negotiations with the insurance company fell through, there’s still a way to avoid going to court. You and your legal team can set up a meeting with the insurance company and a mediator.

This way, the lawyers can hash out the details and settle disagreements without the hassle of an entire court case. Reaching an insurance company settlement will likely be the preferred route for you and the company both.

5. Suing an Insurance Company Requires a Good Team

Let’s say your insurance company has made bad faith claims. Even if the case seems cut-and-dry to you, trying to do the lawsuit alone can be messy. You will likely need a skilled legal team on your side.

Insurance companies are used to the threat of lawsuits, and the company you’re trying to sue probably has excellent lawyers. So you’ll need to be prepared as well.

Good Luck Out There!

Suing an insurance company can seem daunting, but it can be an important way of protecting yourself from unjust behavior. So negotiate first, put together a good team, and fight your case while you still have time.   And for more key tips on topics like this one, check out the rest of our blog!  

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