Can You Sue Your Car Insurance for Bad Faith in Florida?

Can You Sue Your Car Insurance for Bad Faith in Florida?

You paid your premiums. You filed your claim. And now your insurance company is stalling, underpaying, or outright denying what you're owed after an accident or property damage. If this sounds familiar, you may be wondering: can you actually sue your car insurance company for bad faith?

The short answer is yes — and in Florida, the law gives you real tools to do it.

What Is Insurance Bad Faith?

Insurance bad faith happens when an insurance company fails to handle a claim fairly and honestly. Insurance companies have a legal duty to act in good faith toward their policyholders. When they deliberately or unreasonably violate that duty, they can be held accountable in court.

Bad faith isn't just a denied claim. It includes a pattern of conduct designed to avoid paying what you're rightfully owed. Examples include:

• Refusing to investigate your claim properly
• Delaying payment without a legitimate reason
• Offering a settlement far below the actual value of your damages
• Misrepresenting your policy language to justify a denial
• Failing to communicate claim status or decisions in a reasonable time
• Ignoring evidence that supports your claim

These aren't just annoying — they're potentially illegal under Florida law.

Florida's Bad Faith Insurance Laws

Florida has two main legal frameworks for bad faith insurance claims:

Florida Statute § 624.155 covers first-party bad faith — meaning claims you file against your own insurance company. This law allows you to sue your insurer if they fail to attempt in good faith to settle your claim when they could and should have done so. Before filing a lawsuit, Florida law requires you to send a Civil Remedy Notice (CRN) to the insurer and the Florida Department of Financial Services. The insurer then has 60 days to cure the violation. If they don't, you can proceed with your lawsuit.

Florida Statute § 626.9541 addresses unfair insurance trade practices, which overlap with bad faith behavior. This statute prohibits misrepresentation, deceptive practices, and unfair claim settlement tactics.

Under these statutes, if you win a bad faith lawsuit, you may be entitled to more than just your original claim amount. You can potentially recover consequential damages — the additional losses you suffered because of the insurer's bad faith conduct — along with attorney's fees.

Common Signs Your Insurance Company Is Acting in Bad Faith

Not every claim dispute rises to the level of bad faith. But here are clear warning signs that something more serious may be happening:

• Unreasonable delays: The insurer takes weeks or months to respond to communications or make a coverage decision without explanation.
• Lowball offers: The settlement offer is significantly less than repair estimates, medical bills, or other documented damages.
• Shifting reasons for denial: The company keeps changing the stated reason for denying or limiting your claim.
• Failure to investigate: No adjuster contacted you, no inspection was scheduled, or your documentation was ignored.
• Pressure tactics: The insurer pressures you to accept a quick, inadequate settlement before you fully understand your damages.

If you're experiencing any of these, the situation may have crossed from a routine dispute into bad faith territory.

The Process for Suing Your Car Insurance for Bad Faith

Suing your insurer for bad faith in Florida follows a specific process:

1. Document everything: Save all correspondence, denial letters, claim numbers, adjuster notes, and estimates. This evidence is critical.
2. File a Civil Remedy Notice: Before you can sue under § 624.155, you must file a CRN with the Department of Financial Services. This puts the insurer on official notice and starts the 60-day cure window.
3. Wait for the cure period: The insurer has 60 days to fix the problem — pay the claim, reopen the investigation, or otherwise remedy the bad faith conduct.
4. File suit if unresolved: If the insurer doesn't cure the violation within 60 days, you can file a bad faith lawsuit in civil court.

This process has strict procedural requirements. Missing steps or deadlines can jeopardize your case. Working with an experienced attorney early makes a significant difference.

What Damages Can You Recover in a Bad Faith Lawsuit?

Winning a bad faith claim can result in more than just the original insurance benefit you were owed. Florida courts may award:

• The full policy benefit you were denied or underpaid
• Consequential damages: losses caused by the insurer's delay or denial, such as rental costs, out-of-pocket repairs, or lost income
• Attorney's fees and court costs: Florida law allows fee-shifting in bad faith cases, meaning the insurer may be required to pay your legal fees
• Extracontractual damages: In some cases, courts have awarded damages beyond the policy limits when an insurer's bad faith caused additional harm

The potential for recovering attorney's fees is significant — it means many bad faith cases can be pursued without upfront legal costs to the policyholder.

When to Contact a Florida Bad Faith Attorney

You don't need to wait until your claim is fully denied to speak with an attorney. If your insurer is dragging its feet, offering far less than your damages are worth, or treating you unfairly at any stage of the process, getting legal guidance early can protect your rights.

Louis Law Group handles property damage insurance claims throughout Florida, including bad faith cases. Our attorneys know the tactics insurers use to underpay and delay claims — and we know how to fight back. We've helped Florida policyholders recover what they were rightfully owed when insurance companies failed to honor their obligations.

Time matters in these cases. Florida's statute of limitations and the CRN filing process have deadlines that can affect your ability to pursue a bad faith claim. The sooner you act, the stronger your position.

If your Florida property damage claim was denied or underpaid, Louis Law Group fights for your full compensation. Call us for a free case review.

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