Table of Contents
After a car accident, legal concerns often follow the shock and injuries. If you’re wondering whether your auto insurance will pay for a lawyer, the answer depends on several factors, including your policy, who caused the crash, and whether you’re filing or defending a claim.
Most policies only pay for legal defense if you’re the defendant in a lawsuit, not when you’re the one pursuing compensation for your injuries or losses. In this situation, you’ll likely need to hire a lawyer. Many car accident attorneys work on a contingency fee, meaning you won’t pay anything upfront. Instead, the lawyer’s fee comes from the settlement or court award if your case succeeds.
At Arash Law, we help clients navigate the claims process and seek the compensation they may be entitled to under California law. Call us at (888) 488-1391 to schedule a free initial consultation with one of our car accident attorneys.
When Does Car Insurance Cover Legal Fees?
Most car insurance policies do not cover legal fees for someone taking legal action after a traffic accident. Instead, you may work with car accident lawyers who take cases on contingency.
The court may order your insurance company to cover your legal costs in certain cases. This can happen if they wrongfully deny your claim or delay payment without a valid reason. If their actions are considered bad faith, the law may hold them responsible for the extra costs, including attorney fees.
Here is a quick breakdown of situations where your insurance might or might not cover attorneys’ fees:
- You file a lawsuit against the at-fault driver.
- Insurance does not cover your legal fees.
- You pay your attorney, usually through a contingency fee taken from your settlement.
- You file a UM/UIM or MedPay claim with your own insurer.
- This usually happens when the at-fault driver has no insurance or not enough to cover your losses.
- Your insurer does not pay for your attorney in this case.
- You are responsible for legal fees, typically through a contingency agreement.
- Your insurer acts in bad faith (when you’re filing a UM/UIM or MedPay claim).
- This happens when your insurer unreasonably delays, denies, or undervalues your valid claim.
- If the court finds the insurer acted in bad faith, it may order them to pay your attorney’s fees on top of your settlement/award.
- Until then, you pay, often through a contingency arrangement.
What Does Insurance Cover In Car Accidents?
If you got hurt in a crash caused by someone else, their car insurance may have to pay for your losses. This could include your medical bills, missed work, pain, and damage to your car. Their insurance company may offer a settlement or cover a court judgment, but only up to the amount listed in their policy.
The at-fault driver’s insurance may also pay for their lawyer. This is called the duty to defend, which means their insurance company hires a lawyer to protect them. If you file the claim, you don’t get a lawyer from their insurance, but you can hire your own. Many car accident lawyers, like those at Arash Law, work on a contingency fee, which means you don’t pay unless you win.
Here’s what the other driver’s insurance might pay for:
- Doctor visits and hospital stays.
- Ongoing care, like physical therapy.
- Lost wages from time off work.
- Pain and suffering.
- Car repairs or property damage.
- Other injury-related costs.
Injury attorneys can help you gather proof and deal with the auto insurance company. If you need assistance understanding your claim, call the accident lawyers at Arash Law at (888) 488-1391 for a free consultation.
Should I Notify My Car Insurance If Another Driver Is At Fault?
Yes, you should let your insurance company know, even if the other driver caused the accident. Telling them doesn’t mean you’re claiming against your own policy. It simply keeps them informed in case the other driver’s insurance delays payment or denies the claim.
There are situations where your own coverage might still help. If the other driver has no insurance or not enough to cover your costs, your policy could step in if you have specific coverage, such as:
- Collision coverage pays for damage to your vehicle, even if the other driver is unknown, like in hit-and-run accidents.
- Uninsured/Underinsured Motorist (UM/UIM) coverage helps cover your losses if the other driver has little or no insurance.
- Medical Payments (MedPay) may cover medical expenses for you and your passengers, regardless of who caused the accident. It may cover hospital stays, emergency care, and necessary treatments. Depending on the injuries, doctors may recommend physical therapy, chiropractic care, or prescription medication.
These types of coverage are usually optional. The car accident attorneys at Arash Law can help you check your policy and figure out what applies to your case.
Car accident lawyers can also look at other people who may be partly at fault. These can include a car maker, a repair shop, a company that owns the car, or a city that didn’t fix a dangerous road. If someone else helped cause the crash, your lawyer can help you file a claim against them, too. This may help you get more money for your injuries.
When Can Car Insurance Deny Coverage?
Car insurance does not always pay for your losses. Sometimes, the insurer may refuse to cover a claim. Here are common reasons why:
- The Accident Isn’t Covered — Car insurance typically covers crashes, injuries, and damage from driving. The insurer may refuse coverage if the claim arises from commercial use, unauthorized activity, or an unrelated legal issue.
- Insurer Was Not Informed In Time — The driver who caused the crash must report the accident immediately to their insurer. If they wait too long, the company may refuse to pay.
- Accident Happened Outside The Coverage Period — Insurance only applies if the policy was active at the time of the crash.
- Driver Caused Harm On Purpose — Insurance does not pay for intentional acts. The insurer may not cover the damages if the at-fault driver intentionally hurt someone.
If the at-fault driver’s insurance refuses to pay your claim during negotiations, you have the right to file a lawsuit to pursue compensation. A personal injury lawyer can help you build a strong case and represent your interests in court if needed.
If you claim under your UM/UIM coverage, your insurer must act in good faith. If they delay or deny a valid claim without reason, you may also have grounds for a bad faith action. Either way, legal guidance can make a difference in holding insurers accountable and helping you recover what they owe you under the law.
What Is Bad Faith In Car Insurance?
If you were hurt in a crash caused by someone else, their insurance should cover your losses. However, insurers don’t always agree to pay. They may deny your claim for several reasons. When that happens, you can take legal action and let the court decide.
Common reasons why the at-fault party’s insurer may deny your claim:
- They dispute who was at fault.
- They claim your injuries are unrelated to the crash.
- They argue your medical treatment was unnecessary or excessive.
- They say your damages exceed the policy limits.
If you’re filing a claim through uninsured/underinsured motorist coverage, your insurer can also deny payment. This might happen if:
- They say the other driver wasn’t at fault.
- They dispute the severity of your injuries.
- They believe your losses don’t qualify for coverage.
In these cases, you may have a bad faith claim if your insurer unreasonably delays or denies payment. Signs of bad faith include:
- Ignoring your claim or failing to respond.
- Misrepresenting policy details.
- Delaying payment without a valid reason.
If your claim is denied by the other driver’s insurance or your own, an experienced personal injury lawyer can help you understand your legal options and take the next step.
Can Victims Recover Attorney Fees In A Bad Faith Claim?
You may be able to recover attorney’s fees if you hired a lawyer to get the money you were owed. If your insurance company acted in bad faith, you might get more than the original claim. This could include:
- Contract Damages — The amount of the denied claim plus interest (e.g., 10% annually in California).
- Economic Losses — Reimbursement for financial harm caused by the denial, such as:
- Interest on loans taken to cover medical bills.
- Credit damage caused by missed payments.
- Costs related to bankruptcy or debt.
You might also get money for the stress and anxiety the claim denial caused. A car accident lawyer can examine your case and determine if your insurance company acted in bad faith.
Evidence To Prove Bad Faith In UM/UIM Claims
To prove bad faith in a UM/UIM claim, you must show that your insurance company unfairly treated your valid claim. This may involve delays, low offers, or refusing to explain why your claim was denied.
Helpful evidence may include:
- Communication Records — Emails, letters, or call logs showing delays, denials, or lack of clear explanations.
- Expert Testimony — Professionals can explain how the insurer mishandled your UM/UIM claim.
- Internal Documents — Company notes that reveal unfair claim practices or ignoring medical or repair evidence.
Car accident attorneys can assist victims in gathering these pieces of evidence to support their bad faith claims.
What To Do If The Insurer Denies A Car Accident Claim
If your insurer denies your car accident claim, you still have options. Follow these steps to protect your rights and strengthen your case:
- Review The Denial Letter — Carefully read the letter to understand why the claim was denied. Common reasons include:
- The treatment was labeled “unnecessary”.
- The claim doesn’t fall under your policy.
- There were filing errors or disputes over fault.
Our attorneys for car accidents can help you cross-check your insurance policy to confirm whether the denial is valid.
- Gather Supporting Evidence — You’ll need strong documentation to challenge the decision. Collect:
- Photos from the crash scene and of your injuries
- Medical records and bills
- Police reports
- Witness statements
- Repair estimates
- Any communication with the insurer
Organize these documents clearly to support your case.
- Work With A Lawyer — If you think, “I need a personal injury lawyer” after your claim gets denied, you’re not alone. Legal help can make a big difference. Do not speak directly with the insurer. A car accident lawyer can handle all communication, present evidence, and protect your rights. Many offer free consultations and only charge fees if they recover compensation for you.
- File An Appeal And Report Misconduct — If your claim is still denied, you can file a formal appeal following your policy’s procedures with the help of an attorney for car accidents. Include all evidence and meet any deadlines.
If the appeal fails, report the issue to the California Department of Insurance (CDI) or your state’s insurance regulator. They can investigate whether your insurer acted unfairly.
Insurance companies are required to handle claims in good faith. If they don’t, legal action may be an option. Speak with an accident lawyer to protect your rights to fair compensation.
Frequently Asked Questions About Car Insurance Coverage For Attorney Fees
Below are some common legal questions victims ask about insurance coverage after a car accident. We have compiled them to help other victims in similar situations. However, you can fill out this contact form to schedule a free initial consultation if you need personalized advice.
How Long Do I Have To File An Insurance Bad Faith Claim?
The statute of limitations outlines the time limit for insurance claims as a breach of written contract. Policyholders typically have four years to file a bad faith claim. This period starts from the date the insurance company acts improperly. However, the time limit can be shorter depending on the case details. Talk to a car accident attorney about your situation as soon as possible.
How Long Does A Bad Faith Claim Take To Settle?
There is no exact time frame for how long a bad-faith insurance claim will take to settle. Some claims may get resolved in a few months, particularly if there is clear evidence that the insurance company acted in bad faith.
However, the case can take much longer if the insurance company denies the claim and refuses to settle. It might take several months or even a few years. In some situations, going to court and having a jury decide the case may be the only way to reach a fair result.
It is best to know about the strength of your claim early on. Fill out our “Do I Have a Case?” form. One of our car accident attorneys can look at your case and help you decide what to do next.
Can The California Department Of Insurance Make My Provider Pay My Claim?
The California Department of Insurance does not have the power to force your insurance company to pay a disputed claim. However, if you file a complaint, the CDI can investigate how your insurer handled the claim and determine whether they followed state regulations and acted in good faith.
During the review, the CDI may request documentation. They will evaluate the insurer’s conduct and determine whether the company handled your claim fairly. If the agency finds wrongdoing, it can pressure the insurer to make things right. However, it cannot mandate payment.
If your claim still gets denied after CDI involvement, you may need to take legal action. Filing a lawsuit in a California court may be the next step to pursue the compensation you believe you’re due.
Car Accident Victim? You Still Have Options For Legal Help
Automobile insurance mostly protects clients from liability. Your insurer may not cover your attorney fees if you are an accident victim. However, that doesn’t mean you’re out of options. Our car accident attorneys at AK Law work on a contingency fee basis. You don’t have to pay attorney’s fees upfront.
We will explain all possible costs, like court fees and other expenses. We will evaluate your damages, investigate the crash, and pursue compensation from the at-fault party’s insurance provider. If your insurer is delaying, denying, or mishandling your claim, we can also take action.
Every claim is different. That’s why our lawyers for car accident cases take the time to assess your claim and determine the best path forward. Call (888) 488-1391 today to get free accident lawyer advice during your initial consultation.
