Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
Yes and auto insurance carrier at their discretion can bring a law suit against you. Auto insurance companies only sue to recover their loss and no more. So for example you caused an accident and they person you hit used his or her insurance to pay for the damage to their car because you had no insurance. The insurance company may want to recover what they paid out since their client was not at fault. Therefore the insurance company could take you to court to recover the monies spent for the repairs. No lets take it a step further. Say you were the one who was hit and were also injured. Your insurance company if they did not pay for your injuries will not sue for injury, pain and suffering and so on since the insurance company did not suffer a loss in this area. Again, insurance companies will only try to recover their own loss.
Owner/Agent, Pelfrey Financial Services, Lexington, KY
You can be sued by an auto insurance company. If you are involved in an accident and determined to be at fault but do not have any or enough insurance to cover the claims, the company can sue you for the amount paid to their client.
A company could also sue if a claim was paid to you and it was later determined to have been overpaid or fraud. The company can sue to get the money that should not have been paid.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An insurance company issues a policy. The policy is a legal contract. There are obligations on the part of you, the insured, and the company. If you fail to meet the obligations of the contract you could be sued. It certainly isn’t a common practice. Sometimes a company will file a suit in order to get the court to assist in determining the proper course of action. Companies are very aggressive if they suspect that an insured is trying to defraud them. Rather than seeking a remedy by lawsuit they usually turn the case over to a prosecutor.
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A company could also sue if a claim was paid to you and it was later determined to have been overpaid or fraud. The company can sue to get the money that should not have been paid.