You can sue an insurance company in Wisconsin in some situations, especially if it refuses to pay a valid claim or treats the claim unfairly. Insurance companies must handle claims honestly and fairly. If they do not, the injured person may be able to take legal action.
After a serious car accident, working with an insurance company to resolve a claim can become challenging. Adjusters may question the claim, delay payment, or dispute the amount of damages owed.
You don’t have to take on the insurance company alone. Our Milwaukee insurance bad faith lawyer will review the situation, explain your rights, and determine whether the insurance company may be sued.
Situations Where You May Sue an Insurance Company in Wisconsin
Not every insurance dispute leads to a lawsuit. However, Wisconsin law allows legal action when an insurer fails to meet its legal responsibilities.
A lawsuit may arise when any of the following apply:
- There‘s a claim denial without a valid reason: The insurer refuses to pay a claim that appears covered by the policy.
- Unreasonable delays: The insurance company takes too long to investigate or respond to a claim.
- Low settlement offers: The insurer offers far less than the damages appear to be worth.
- Bad faith practices: The company knowingly handles the claim unfairly or dishonestly.
Insurance companies must treat policyholders fairly during the claims process. If they don’t, the injured person may have the right to take legal action.
Our car accident lawyer in Milwaukee will review how the insurance company handled your claim and explain whether filing a lawsuit may be an option.
For a free legal consultation, call (414) 276-6666
Wisconsin’s ‘Direct Action’ Rule
Wisconsin law allows injured people to sue an insurance company directly in many cases. This rule is often called the direct action statute (Wisconsin Statute § 632.24).
Under this rule, a person injured in a crash may file a lawsuit against the at-fault driver, the driver’s insurance company, or both at the same time.
This law can make the legal process simpler because the insurer may be included in the case from the start. The purpose is to allow injured people to pursue damages after a crash.
What Is Insurance Bad Faith?
Insurance bad faith occurs when an insurance company fails to treat a claim honestly or fairly. Insurance companies must evaluate claims carefully and make reasonable decisions based on the policy and the evidence.
If any of the following occur, bad faith is possible:
- Ignoring evidence that supports the claim.
- Misrepresenting what the policy covers.
- Failing to investigate the accident properly.
- Refusing to communicate with the policyholder.
- Delaying payment without explanation.
When bad faith occurs, the injured person may be able to pursue damages beyond the initial claim.
Click to contact our personal injury lawyers today
What Damages May Be Recovered in a Bad Faith Lawsuit?
When an insurance company doesn’t handle a claim properly, a lawsuit may seek damages connected to the accident and the insurer’s conduct.
Depending on the case, damages may include:
- Medical bills related to the accident
- Future medical care and rehabilitation
- Lost income from missed work
- Reduced ability to earn a living
- Pain and suffering
- Property damage
If bad faith is proven, additional damages may sometimes apply. Each case depends on the facts and the available evidence.
Complete a Free Case Evaluation form now
Steps That Commonly Happen Before a Lawsuit
A lawsuit is usually not the first step in a car accident claim. Most cases begin with an insurance claim and settlement negotiations.
We will guide you through the process, which involves:
- Reporting the accident and opening an insurance claim.
- Investigating the crash and gathering records.
- Reviewing medical treatment and expenses.
- Negotiating a settlement with the insurance company.
If the insurer refuses to pay fair damages or delays the claim without good reason, filing a lawsuit may become necessary.
Why Insurance Disputes Can Become Complicated
Insurance policies contain many rules, exclusions, and coverage limits. Understanding those terms can be difficult without legal experience.
Insurance disputes may involve questions such as:
- Whether the policy actually covers the accident
- Whether the injuries meet the policy requirements
- Whether multiple insurance policies apply
- Whether the insurer followed Wisconsin claim-handling laws
Because of these complexities, disputes sometimes require legal review before the next step becomes clear.
Time Limits for Filing a Lawsuit in Wisconsin
Wisconsin law places time limits on filing personal injury lawsuits. In many car accident cases, the injured person has three years from the date of the crash to sue for damages.
Some situations follow different deadlines. Claims involving government entities or certain insurance disputes may have different rules. Our attorney reviews the timeline early and helps protect your right to file.
Evidence That Can Support a Lawsuit Against an Insurance Company
Strong evidence often plays an important role when disputes arise with an insurance company.
Helpful proof may include:
- Police accident reports
- Medical records and treatment notes
- Photos or video from the crash scene
- Witness statements
- Vehicle damage reports
- Insurance policy documents
These records can help show how the accident happened and how the insurer handled the claim.
When Legal Help May Become Important When Suing an Insurer
Insurance companies handle claims every day and often have teams focused on limiting payouts. When there’s disagreement over a claim, the injured person may face challenges understanding policy language or negotiating with the insurer.
Getting help from a Milwaukee personal injury lawyer from our firm can help when a claim is denied or an insurance company’s settlement offer is too low. An attorney can also lead the case when communication with the insurer stops, or they delay the payment for a long time.
We will review the claim, evaluate damages, and determine whether legal action against the insurer may be appropriate.
Get Help After an Insurance Company Refuses to Pay Your Claim
Suing an insurance company in Wisconsin can become necessary when an insurer refuses to handle a claim fairly or refuses to pay the damages owed after a car accident.
Gruber Law Offices, based in Milwaukee, proudly serves communities throughout Wisconsin. We have helped tens of thousands of people over more than 40 years. With 130+ legal professionals, we have the resources and experience to take on insurance companies.
Insurance companies have teams working to protect their financial interests. You should not face them alone. We work on a contingency fee basis, which means you pay nothing up front to hire us. Once we secure your settlement, our legal fees come out of that payment.
Make “One Call…That’s All” for a free consultation. We can discuss the accident and how we can help you hold an insurance company accountable.
Call or text (414) 276-6666 or complete a Free Case Evaluation form
