Being unable to get the money you deserve after a car accident can be incredibly frustrating. In some cases, turning to a lawsuit might be the correct option, but you should always review your case with a lawyer to check.
When you file a claim after a car crash, you might file part of the claim with your own insurance but also file the whole claim with the defendant’s insurance. If the defendant’s insurance fails to pay, you can typically sue the defendant directly, and their insurance will cover the lawsuit. When your own insurance fails to pay, you might have a lawsuit against them for breach of contract (the insurance policy) or even a bad faith insurance claim.
For help with your case, call (504) 688-7760 for a free case review with the Lafayette, LA car accident lawyers at Schoenfeld Law Firm.
What is My Insurance Company Supposed to Pay After a Car Accident?
Getting damages paid after a car crash is exceedingly confusing, especially since there are so many possible policies and coverages you might have. Louisiana uses an at-fault or tort system for car insurance claims, meaning the defendant actually pays damages through their insurance, but your own policy might still have some coverages:
- Comprehensive coverage pays for vehicle damage from non-accident sources.
- Collision coverage pays for damage from crashes, regardless of fault.
- Medical payment coverage pays for your medical treatment regardless of fault.
- Uninsured/Underinsured Motorist coverage of various levels pays for damages when the other driver has low or no insurance.
What if They Deny My Claim? Can I Sue?
When you use things like collision coverage or medical payment coverage, your insurance should pay regardless of fault. When you use uninsured or underinsured motorist coverage, your insurance pays in place of the at-fault driver, so fault still needs to be proven.
When the insurance company fails to pay, you typically have three options:
Use Their Appeals Processes
You can often appeal decisions from your insurance company. Sometimes reconsideration and appeals unveil mistakes that your insurance company made, so you can get the payments processed.
However, you are essentially asking the insurance company to double-check their work, so their answer is unlikely to change.
Have Your Lawyer Negotiate
If you get our Louisiana car accident lawyers on your side, we can contact your insurance company and demand payment, then negotiate with them. It often takes back-and-forth discussions to uncover why your insurance company has a problem with your claim, and this can sometimes get the claim resolved without a lawsuit.
Sue
If all else fails, a lawsuit might be necessary. However, the grounds can vary, depending on how bad your insurance company’s actions were.
An insurance policy is a contract, so they must pay cases that fall within the covered areas. With simple mistakes or a failure to understand the facts of the case, your insurance company may be in breach of their contract with you.
If their actions are worse and they fail to even make a good faith effort to pay in the first place, then you can often sue for insurance bad faith. This requires serious problems, like canceling your insurance policy behind your back or denying that you were up to date on premiums when you have proof you were.
Can You Sue the Other Driver’s Insurance After a Crash?
When the other driver was at fault, they pay for the damages through their insurance. They are supposed to have a minimum coverage of at least $15,000 per person and $30,000 per accident for injuries, plus $25,000 per accident for property damage.
If their insurance company refuses to pay, we can similarly appeal the claim or negotiate with their insurance company and lawyers. We can also just take the driver to court.
When you sue a driver, their insurance steps in and offers them a lawyer, and the insurance company still pays the damages when we win in court. You do not typically sue their insurance.
FAQs for Suing After an Insurance Denial in Louisiana
What About Other Accidents Outside of Car Crashes?
While insurance is most common in car accidents, you can also file claims against an at-fault party’s homeowners or business insurance for a slip and fall, and businesses have other liability insurance to cover other injuries during operations.
Those policies are the defendant’s policies, however, so you would just sue the defendant if the claim is denied. There are no lawsuits for breach of contract or bad faith like you would file against your own insurance.
What is Insurance Bad Faith?
Insurance companies are held to a requirement to make a good faith effort to pay insurance claims that fit the policy’s coverage. If they fail to do so, they can often be sued for the original payout value you should have received, plus punitive damages.
Insurance bad faith usually requires serious malfeasance, such as
- Ignoring communications from the policyholder.
- Retroactively canceling policies.
- Giving you the runaround.
- Conveniently “losing” or actively destroying records and documentation.
- Denying you paid your premiums when you actually did.
- Other lies and misrepresentations.
Do You Sue the Other Driver or Their Insurance?
Generally, if the other driver was the one to cause your accident, you would sue them directly, not their insurance company. The insurance company then steps in to provide them with a lawyer and to pay their damages if they lose the case.
You would not typically have a case directly against their insurance company, even for a denial, because you have no contract (policy) with that insurance company for coverage; it’s the defendant’s policy, not yours.
Call Our Car Accident Lawyers in Louisiana Today
Call the New Orleans, LA car accident lawyers at Schoenfeld Law Firm for a free case review at (504) 688-7760.
