When Can You Sue for Pain and Suffering Damages?
You can sue if your insurance company unjustly denies or delays payment on a valid claim in a way that causes extra pain and suffering.
For example, if their delay means you have to wait to get surgery and endure more pain. Their actions have to show bad faith.
How Much Money Does Suing an Insurance Company Cost?
If the case settles quickly, costs may only be $2,000 – $5,000. But if it requires a full trial, costs can be over $50,000. Attorney fees also vary a lot but are often 30-40% of any settlement or judgment. Even just filing the lawsuit can cost several thousand dollars.
Some Insurance Guides to Read:
- Does Pet Insurance Cover Parvo In USA
- How Long Does Health Insurance Last After Quitting Job
- Is laser Teeth Cleaning Covered by Health Insurance
Step-by-Step Process of Suing Your Insurance Company
1. Gather Evidence
Keep detailed records of all exchanges with the insurance company showing their unreasonable denial or delay. Get written denials. Note conversations. Keep emails and letters. Medical records can show harm done.
2. Send a Demand Letter
Have your attorney send a formal letter to the insurance company demanding they settle the claim fairly. Explain how their bad faith caused damage and suffering. Provide evidence. Give them a settlement deadline.
3. File Lawsuit
If the insurer refuses to settle, your attorney will file a civil lawsuit in state court for breach of contract and bad faith. The lawsuit seeks compensation for financial losses plus pain and suffering damages.
4. Litigation Process Starts
The insurance company will likely file motions to dismiss the case early on. If the case continues, the standard litigation process starts. Both sides exchange information through discovery requests. Depositions may be taken.
5. Attempt Settlement Negotiations
Before the trial, your attorney will likely try to negotiate a settlement with the insurer to avoid trial. This can take time to find an amount acceptable to both sides.
6. Trial
If no settlement is reached, the case will go to trial before a judge or jury. Both sides present evidence and testimony aiming to win the case. The judgment or settlement amount is determined.
7. Collect Compensation
If you win, the insurance company must pay the judgment amount including any damages for pain and suffering. Your attorney will assist in collecting what you are owed.
4 Tips for Getting a Good Settlement
1. Hire a Good Lawyer
Get an attorney who’s really experienced at bad faith insurance cases. They’ll know how to build your case and negotiate the best settlement. This is not a DIY situation. The lawyer’s fees will be worth it in the end.
2. Keep Great Records
Save all letters, emails, call logs, medical bills, and anything else related to your claim and case. Good records prove the insurance company’s unreasonable actions and your damages. This evidence gives you leverage when negotiating.
3. Get Expert Opinions
Ask doctors, car repair shops, or other experts to evaluate your situation and write reports supporting your claim. This independent confirmation makes your case stronger if it goes to trial. Insurers know juries listen to expert testimony.
4. Stay Calm and Flexible
During settlement talks, don’t get angry or make extreme demands. Be willing to compromise a little. Calmly insist on fairness. Make it clear you’d rather settle than fight an expensive trial, but you won’t back down if necessary.
While suing an insurer takes time and effort, staying prepared and reasonable when negotiating your bad faith claim settlement can result in the fair outcome you deserve.