Can You Sue Your Own Car Insurance Company?

You pay your premiums on time, drive carefully, and trust your insurance company to have your back when something goes wrong. But when the accident happens and the bills start piling up, suddenly they’re treating you like the problem, and not the person they promised to protect. So what happens when the company you counted on refuses to play fair? Can you actually sue your own insurance company?

Understanding What It Means to Sue Your Own Insurance

Most drivers never imagine suing their own insurance company, but it happens more often than you’d think. Filing a claim is one thing, which is asking your insurer to honor the coverage you’ve paid for. Suing is different.

It means your insurer failed to uphold that promise, whether by denying payment, delaying your claim, or refusing to cover what’s clearly owed under your policy. In Florida, insurance companies are legally required to act in good faith, handle claims promptly, and treat policyholders fairly. When they don’t, you have the right to hold them accountable in court, in a lawsuit process that often involves proving their wrongdoing and demanding the full compensation your policy guarantees.

Many accident victims end up learning that the fight for fair compensation sometimes begins not with the other driver’s insurer, but with their own. And there are certain cases when it’s possible.

When You Might Need to Sue Your Own Insurance Company

Most people never expect to fight their own insurance company. But for many crash victims, that’s exactly what happens once the dust settles. There are some of the most common situations where a claim turns into a legal battle, and why holding your insurer accountable may be the only way to get the compensation you deserve.

1. The Other Driver’s Coverage Isn’t Enough

This is the situation we see most often. You’re injured by a driver whose insurance barely scratches the surface of your bills. Maybe they carry Florida’s minimum $10,000 policy, while your hospital stay alone costs five times that. When their coverage runs out, your Uninsured or Underinsured Motorist (UM/UIM) coverage steps in.

This part of your policy was designed to protect you when the other driver can’t. It can pay for what the at-fault driver’s insurance won’t, like ongoing treatment, therapy, or lost wages. Yet too often, your own insurer will dispute how serious your injuries are or claim you’ve already been “fairly compensated.” In cases like that, you may have to file suit to make your insurance honor the policy you’ve been paying for all along.

2. Your Insurer Delayed, Denied, or Acted in Bad Faith

Sometimes, the problem isn’t the other driver. It’s your insurer refusing to do its job. Delays, “missing” paperwork, or lowball settlement offers are all red flags. That can look like:

• Failing to properly investigate your crash
• Denying a legitimate claim without evidence
• Misrepresenting what your policy covers
• Ignoring calls, letters, or deadlines
• Offering an unreasonably low settlement

Florida law requires insurers to handle claims promptly and in good faith. But in reality, many companies drag out investigations or deny coverage, hoping you’ll give up or settle cheaply. Under Florida’s bad-faith law (§624.155), insurers that act dishonestly can be held liable for additional compensation or even punitive damages.

If weeks turn into months and you’re still waiting for a fair answer, you or your attorney can push back. In some cases, that means suing for unreasonable delay or denial to force the company to pay what’s owed.

3. You Were in a Hit-and-Run Accident

Florida ranks among the top states for hit-and-run crashes, with almost 98 thousands of hit-and-run accidents reported each year, according to the Florida Department of Highway Safety and Motor Vehicles. If the driver who hit you disappears, your UM coverage is your only safety net.

But getting paid isn’t always easy. Insurers may demand proof that the other driver was uninsured or can’t be located. That is something nearly impossible when the car is long gone. That’s when legal action can make a difference. An attorney can help prove the crash, document your injuries, and file a claim or lawsuit that forces your insurer to fulfill their end of the policy.

4. Your Insurer Breached the Contract

Every insurance policy is a binding contract. When your insurer refuses to pay what it promises, whether for car repairs, medical costs, or lost income, it’s a breach of contract.
This type of lawsuit is about enforcing the agreement you made when you bought your policy. You paid your premiums. They agreed to protect you. If they walk away from that responsibility, you have every right to take them to court and make them live up to their word.

5. Pain and Suffering in UM/UIM Cases

Unlike PIP or MedPay, which only cover medical bills and partial wage loss, UM/UIM coverage can also pay for your emotional distress and loss of enjoyment of life. These non-economic damages often make up a large part of a fair settlement. When an insurer refuses to recognize these losses, a lawsuit may be the only way to secure the compensation you truly deserve.

Each of these situations stems from one truth: your insurance company has a duty to protect you. When they forget that, the law gives you the power to hold them accountable.

What You Can’t Sue For Your Own Insurance

Once you’ve been through the chaos of an accident, the last thing you expect is a fight with your own insurer. But before taking that step, it’s important to know what kind of claim actually gives you legal standing and what doesn’t. Not every disagreement is grounds for a lawsuit against your own insurer.

Accidents Where You Were Fully at Fault

If you caused the accident and your policy doesn’t include PIP, MedPay, or other first-party injury benefits, you can’t sue your insurer for not covering those losses. Florida’s no-fault system ensures your PIP covers basic medical expenses up to $10,000, but beyond that, your options depend on your own coverage limits.

Regular Claim Delays That Don’t Break the Law

Processing claims takes time, especially when multiple parties or injuries are involved. Not every delay is illegal. Lawsuits only make sense when delays are unreasonable or used as a tactic to pressure you into a lower settlement.

Simple Valuation Disagreements

If you and your insurer disagree on how much your totaled car is worth, that alone isn’t enough to sue. It becomes a legal issue only when the insurer manipulates or ignores evidence to undervalue your claim intentionally.

Knowing what you can and can’t sue for helps you focus your energy where it counts. When insurers step outside the law or break their promises, you have every right to fight back. And if you’re unsure whether your situation crosses the line, our Florida insurance attorneys can review your case for free and tell you clearly if there are valid grounds for a lawsuit.

How To Sue Your Own Insurance Company

You’ve filed your claim, sent every document they asked for, and waited patiently for an update. But instead of the help you expected, you’re left with silence, delays, or a payout that doesn’t even begin to cover your losses. At that point, it’s time to take action. Here’s what to expect, and how to prepare, if you need to take legal action against your own insurance company.

1. Gather Every Piece of Evidence
   Start by organizing everything related to your claim. Keep all your communication in writing, such as emails, letters, and text messages from your adjuster. Save your medical records, doctor statements, repair estimates, and proof of lost wages. Add photos or videos of the crash, your injuries, and vehicle damage. If anyone witnessed the accident, get their statements too.
   Document every delay or unanswered message. Keep any denial letters or lowball offers from your insurer; those documents are powerful evidence of bad faith or breach of contract. Missed deadlines, vague excuses, or inconsistent updates can all help prove bad-faith conduct later in court.
2. Ask for a Written Explanation of Benefits
   If your insurer denied or underpaid your claim, request a detailed explanation of how they reached that decision. They’re legally required to provide it. Many bad-faith cases start when insurers give incomplete or misleading reasons for a denial, or none at all. A clear paper trail helps your attorney show exactly where your insurer went wrong.
3. Talk to a Lawyer Before Things Get Worse
   Once your insurer starts delaying payment or questioning your injuries, it’s time to get help. A personal injury attorney can review your policy, identify coverage violations, and handle all communication for you. That prevents the insurance company from twisting your words or running out the clock on deadlines.
   An attorney will also calculate your full damages, including immediate bills and future medical costs, long-term pain, and lost income. If your insurer continues to resist, they’ll be ready to take the next step.
4. File a Civil Remedy Notice (CRN) Before Suing
   In Florida, you can’t immediately file a bad-faith lawsuit against your insurer. State law requires your attorney to first submit a Civil Remedy Notice (CRN) to the Florida Department of Financial Services. This notice outlines how your insurer acted unfairly and gives them 60 days to fix the problem, such as paying what’s owed or correcting the delay.
   If the insurer refuses to act within that time, you then gain the legal right to file a lawsuit in civil court. The CRN acts as both a warning and a test: it gives your insurer one final chance to make things right before you take them to court.
5. File a Lawsuit If the Insurer Refuses to Pay
   If your insurer ignores the CRN or fails to resolve your claim, your attorney can file a civil complaint in court outlining the insurer’s bad faith or breach of contract. From there, both sides exchange evidence, and most cases settle before trial, and often for far more than the insurer’s original offer.
6. Know That You Won’t Pay Out of Pocket If You Win
   Florida’s bad-faith laws protect consumers. If your insurer loses, the court can make them pay your attorney fees and court costs, so you don’t risk your own money by standing up for yourself. That’s part of how the system keeps insurers accountable.

Suing your insurance company may sound intimidating, but it’s often the only way to make them live up to their promises.

How Long Do You Have to Sue in Florida

Time moves fast after a crash. Between medical visits and repair calls, months can slip by before you realize your insurer still hasn’t paid. In Florida, deadlines to sue are strict, and missing them can end your case before it starts. For most insurance-related lawsuits, including bad-faith or breach-of-contract claims, you have five years from the date your insurer violated the policy. But acting early helps your attorney collect records, build evidence, and file before time runs out. You don’t have unlimited time, and your insurance company knows it.

Common Concerns Drivers Have Before Suing Their Own Insurer

When people realize they might have to challenge their own insurance company, the fear often isn’t about money. Worries about losing coverage, rising premiums, or upsetting the insurer that’s supposed to protect you are real, especially when you’re still trying to recover from an accident.

Will My Rates Go Up?

It’s the most common concern, and it’s completely valid. You’ve already suffered enough; a rate hike shouldn’t be part of the fallout. In Florida, insurance companies can’t legally raise your premium for using your UM or UIM coverage after a not-at-fault accident. The law protects drivers who make legitimate claims under their own policies.

Still, some insurers try to get around the rule by quietly choosing not to renew your policy later. Having a lawyer involved early can help prevent that. An attorney can monitor your case, document any retaliation, and hold the insurer accountable if they overstep.

Will My Insurance Drop Me?

Your insurer can’t cancel your policy just because you filed a valid claim. You paid for this coverage; using it doesn’t make you difficult. Major carriers know that dropping a policyholder for exercising their rights can lead to serious legal trouble or even a bad-faith lawsuit.

If you’re still uneasy, your lawyer can handle all communication with your insurer and make sure your coverage stays protected.

Your concerns are valid, and you’re not alone. With the right legal team, you can protect your rights, your coverage, and your peace of mind while you focus on recovery.

Why Having a Lawyer Matters

Taking on an insurance company alone isn’t easy. They have teams trained to delay or undervalue claims, and they know most people don’t have the time or experience to fight back. A skilled Florida personal injury attorney levels the playing field, reviewing your policy, spotting violations, and calculating what your case is truly worth, from medical costs to the pain that’s changed your life.

Let us take it from here. Our personal injury lawyers have helped thousands of Florida residents recover what they were owed. We’ll review your policy for free, explain your options clearly, and hold your insurer accountable if they’re not playing fair. You focus on healing, while we’ll handle the fight.

Call us today for a free case review. We’re ready to stand up for you, just as we’ve done for countless Floridians who refused to let their insurers walk away from responsibility.