Can You Sue Your Own Insurance Company?

Colburn Law

Posted by Greg Colburn in Car Accidents on February 17, 2025

A common question we hear from clients is: “Can you sue your own insurance company?” The answer is yes. In Washington State, policyholders are protected by strong consumer laws that allow them to take legal action when their insurer fails to act reasonably or honor the terms of their policy. Whether it’s a denied claim, unreasonable delay, or bad faith practices, you can hold your insurance provider accountable and seek compensation for your losses. Colburn Law – Accident and Injury Lawyers stands up to insurance companies on behalf of Washington residents and is committed to helping you protect your rights and recover what you’re owed.

Can I Sue My Own Auto Insurance Company in WA?

Yes. Under the Insurance Fair Conduct Act (IFCA) in Washington, you can sue your insurer if they unreasonably deny your claim or fail to pay benefits covered by your policy. Insurance companies must treat policyholders fairly and act in good faith. You have legal recourse when they fail to uphold their end of the contract.

Circumstances for Suing Your Own Insurance Company

You may have grounds for a lawsuit against your insurer in the following scenarios:

Coverage Denial or Delay

If your insurer denies a valid claim or delays payment without a reasonable explanation, it can cause financial and emotional distress. In some cases, insurers may use delay tactics to pressure you into accepting a lowball settlement. This is a deceptive practice and may be grounds for legal action. These delays can leave you unable to pay for necessary medical treatment, vehicle repairs, or even basic living expenses, significantly damaging your life. According to the Washington State Office of the Insurance Commissioner, if your car is declared a total loss, your insurer must promptly provide a settlement offer based on the vehicle’s fair market value. Any unreasonable delay in this process may violate consumer protection laws. An experienced Seattle car accident attorney can help you assess whether your insurer’s actions rise to the level of a legal violation.

Breach of Contract

Your insurance policy is a legally binding contract. If your insurer fails to fulfill their obligations, such as denying coverage clearly outlined in your policy, they may be in breach of contract. An attorney’s legal review of your policy can help determine if this applies to your case. Breach of contract claims often stems from insurers exploiting vague language or denying coverage without a proper investigation, both of which can be challenged in court. It’s essential to have an attorney evaluate the details of your claim and policy.

Bad Faith Practices

Insurance companies are required by law to act in good faith. Examples of bad faith behavior include:

• Misrepresenting policy terms

• Failing to acknowledge or investigate claims promptly

• Unreasonable denial or underpayment of claims Bad faith actions are more than mistakes. They represent a willful disregard of the insurer’s obligations. Washington courts may award additional damages in bad faith cases, including up to three times the actual damages, as a punitive measure to discourage such conduct and protect consumers.

Steps to Take if Considering Legal Action

Before taking legal action against your insurance company, follow these essential steps:

1. Review Your Policy – Understand your coverage, exclusions, and claims procedures. Be sure to read the fine print, as insurers may use specific policy language to justify a denial.

2. Document Everything – Keep all communication with your insurer, including emails, letters, and notes from phone calls. This paper trail can be invaluable if your claim is wrongfully denied or delayed.

3. File a Complaint – You must send written notice to both your insurer and the Washington State Office of the Insurance Commissioner (OIC) at least 20 days before filing a lawsuit. This step is legally required and gives the insurer a chance to respond. According to the Washington OIC, complaints are commonly filed for claims delays, unfair denials, and misrepresenting policy terms. Referring to the OIC’s complaint categories can help you correctly classify your issue and provide supporting documentation.

4. Gather Evidence – Collect photos, accident reports, medical records, and witness statements to support your case. The stronger your documentation, the better your chances of a successful claim or lawsuit.

5. Consult an Attorney – An experienced insurance dispute lawyer can assess your situation, explain your legal options, and help you avoid common pitfalls. They’ll ensure deadlines are met and build the strongest case possible on your behalf.

How do I file a claim against my own insurance company?

If you’re ready to pursue action against your insurer:

• Notify Your Insurer – Inform them of your intent to file a claim and submit all relevant documents. Do this in writing and request confirmation to have a formal record.

• Submit Required Forms – Complete and return any documentation your insurance provider requires. Ensure all forms are filled out accurately to prevent unnecessary delays.

• Cooperate with Investigations— Respond promptly to requests for additional information. Providing prompt and thorough responses demonstrates good faith and can strengthen your case.

• Follow Up Regularly – Stay engaged with your insurer to track the progress of your claim. Consistent follow-up shows persistence and can keep your claim moving forward.

• Explore Mediation Options—In some cases, disputes can be resolved through mediation rather than a lawsuit. Mediation may save time and money and result in a mutually agreeable outcome without going to court.

What benefits can I obtain when I sue my own insurance company?

If your lawsuit is successful, you may be entitled to:

• Denied Policy Benefits – Compensation for claims your insurer wrongfully denied, like repairs, medical bills, or property damage. These benefits represent what you were initially promised under your insurance contract.

• Financial Losses – Reimbursement for out-of-pocket costs, delayed payments, rental fees, or lost income. This helps restore your financial situation to where it should have been.

• Attorney’s Fees – Legal fees and litigation costs may be recoverable under IFCA. This can reduce your financial burden during the legal process.

• Treble Damages—In bad faith cases, Courts may award up to three times actual damages. This is intended to penalize insurers and discourage unfair practices.

• Emotional Distress – Damages for stress, anxiety, or hardship caused by unfair treatment. These awards recognize the personal toll of insurance misconduct.

How to Find the Best Attorney for Your Case

When facing a powerful insurance company, the lawyer you choose makes a difference:

• Proven Track Record – Choose a firm with a history of successfully handling insurance disputes.
• Local Knowledge – Make sure your lawyer knows Washington insurance laws.
• Positive Reputation – Look for strong client reviews and community trust.
• Free Consultations – Use them to assess if the lawyer fits your needs.
• Results-driven – Choose a firm focused on outcomes in cases like yours.

Get Help from Colburn Law Today

If you’re wondering, “Can I sue my own insurance company?” you don’t have to face the process alone. At Colburn Law, we specialize in fighting for policyholders’ rights across Washington State. Call now: (206) 823-4953.

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