Most people assume that filing a claim means the insurance company will do the right thing. They won't. Insurance companies are corporations, and their first obligation is to their shareholders, not to you. When they delay your claim, lowball your offer, or deny you outright, you have more options than you think. So, can you sue an insurance company in Texas? Yes — and sometimes, it's the only way to get what you're truly owed.
Here's when Texas law may give you the right to take them to court:
- Their denial was wrongful: the claim was valid, and they refused to pay without a legitimate reason
- They acted in bad faith: delaying, misrepresenting your policy, or using deceptive tactics to minimize your payout
- They breached your policy: failing to honor the coverage you paid for
- They were negligent: careless handling of your claim that directly caused you additional harm
- They violated the Texas Insurance Code: engaging in unfair claims settlement practices
If any of this sounds familiar, you don't have to fight alone. Insurance giants are counting on you feeling overwhelmed, outgunned, and out of options — but that's exactly what we're here to change. Call the Houston insurance lawyers who fight giants: Mark Thiessen and Mike "The Insider" Pita at (713) 864-9000 for a free consultation and find out exactly what your case is worth.
“They fought for me and got me an incredible 6-figure settlement. When Jesenia told me the final number, I literally cried happy tears. This law firm isn’t just good, they’re legendary. They’ve officially earned the title of ‘my attorneys for life.’”
— Ashley B
When can you sue your insurance company?
Insurance companies have armies of adjusters, lawyers, and investigators whose sole job is to pay you as little as possible. But paying as little as possible isn't always legal — and when they cross the line, Texas law gives you the right to fight back.
Here's a breakdown of the five main situations where you have grounds to sue your insurance company:
Their denial was wrongful
A denial isn't automatically a dead end. Insurance companies count on you accepting their decision and walking away — but if your claim was valid and they refused to pay it, that denial may be legally actionable. Wrongful denials happen more often than most people realize, and they're not always obvious.
Common examples of wrongful denials include:
- Denying a legitimate medical claim without reviewing the evidence
- Claiming your injuries (like neck pain after an accident) weren't caused by the incident
- Disputing the severity of your injuries despite clear medical documentation
- Ignoring or dismissing expert opinions that support your claim
To fight a wrongful denial, you need to demonstrate that your claim fell within your policy's coverage, that you submitted the required documentation, and that the insurer had no valid basis for the denial. Policy documents, medical records, and the denial letter itself are all critical. That's exactly the kind of evidence we build our cases around.
They acted in bad faith
Bad faith isn't just getting the answer wrong — it's knowingly acting improperly. It occurs when an insurance company engages in dishonest practices or fraud when dealing with claimants, and in Texas, it's not just unethical. It's actionable.
Common examples of bad faith insurance practices include:
- Delaying or denying payment without a valid reason
- Offering a settlement so low it doesn't begin to cover your pain and suffering damages in Texas
- Conducting an inadequate or deliberately delayed investigation
- Misrepresenting your policy terms to avoid paying what they owe
- Asking for more documentation when more than enough has already been provided
To prove bad faith, you must demonstrate that the insurer acted unreasonably and knew — or should have known — that its conduct was improper. Communication records, claim denial letters, internal adjuster notes, and policy documents are all essential evidence. Insurance companies are counting on you not having any of it. We make sure you do.
That they were negligent
Negligence claims against an insurance company are less common than bad faith or breach of contract claims, but they do exist. This typically arises when an insurer's careless handling of your claim directly causes you additional harm — beyond simply failing to pay what you were owed.
What is an example of negligence in insurance? Examples include:
- Failing to properly investigate a claim, resulting in a wrongful denial
- Mishandling or losing critical documentation that damages your case
- Providing incorrect information about your coverage that causes you to make decisions against your own interest
- Negligently settling a third-party claim for more than your policy limits, leaving you personally exposed
To prove negligence, you must show that the insurance company owed you a duty of care, that they breached that duty through careless conduct, and that their breach directly caused you measurable damages.
Negligence claims are harder to prove than breach of contract — but when insurers screw up badly enough to cause you measurable harm, they don't get to walk away clean.
They breached your policy
You paid your premiums. You held up your end of the contract. An insurance policy is a legally binding agreement, and when an insurer fails to honor the coverage you paid for, they've broken it — plain and simple.
Signs that your insurer may have breached your policy include:
- Refusing to cover treatments that fall within your policy's stated terms
- Underpaying your claim using a manipulated or unsupported valuation
- Denying compensation for emotional distress after a car accident despite applicable coverage
- Applying exclusions selectively or incorrectly to reduce your payout
To pursue a breach of contract claim, you need to show that a valid policy existed, that you met your obligations under it, that the insurer failed to meet theirs, and that you suffered real damages as a result. Documentation is everything — and building airtight documentation is something we do better than anyone.
They violated the Texas Insurance Code
Texas has some of the strongest insurance consumer protections in the country, and the Texas Insurance Code sets clear, enforceable rules for how insurers must handle claims, communicate with policyholders, and conduct investigations. When they break those rules, you have a direct legal claim against them — sometimes entitling you to damages beyond the original value of your claim.
Common Texas Insurance Code violations include:
- Failing to acknowledge receipt of a claim within 15 days
- Not accepting or denying a claim within 15 business days of receiving all required documentation
- Making false or misleading statements about your policy or claim status
- Refusing to pay a valid claim without conducting a reasonable investigation
These aren't technicalities — they're protections Texas built specifically for people like you. At Thiessen Law Firm, we know exactly where insurance companies cut corners, and we know how to use every violation against them.
When you don't have a case against your insurance company
Not every dispute with an insurance company rises to the level of a lawsuit. Sometimes, as frustrating as it is, the insurance company is technically within their rights — and filing suit without a viable legal claim will cost you time, money, and energy you can't afford to waste.
Here's when you likely don't have a case:
- Your claim falls outside the terms of your policy: If your claim genuinely falls outside your policy terms, the insurer isn't breaking the law by denying it — they're just doing what the contract allows.
- You missed a critical deadline: Late filings can void your right to recover, regardless of how valid your claim is.
- You failed to provide sufficient documentation: An insurer can't be held liable for denying a claim that wasn't properly supported.
- The insurer's denial was reasonable: If they had a legitimate, good-faith basis for their decision, it may not meet the legal threshold for a lawsuit.
- Your damages are minimal: If the cost of litigation outweighs what you stand to recover, pursuing a lawsuit may not be practical.
If you're not sure which side of that line you fall on, that's exactly the conversation to have with an attorney before you make any decisions. Insurance companies are sophisticated — they know how to make a defensible denial look like bad faith, and they know how to make bad faith look like a simple misunderstanding.
Who holds insurance companies accountable in Texas?
Insurance companies don't operate without oversight — but the agencies and courts that hold them accountable aren't going to come knocking on your door. You have to know who to turn to and when. Here's how accountability actually works in Texas:
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The Texas Department of Insurance (TDI) is the state agency responsible for regulation. |
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If your insurer violates the Texas Insurance Code, you can file a complaint with the TDI. They investigate, fine, and in extreme cases revoke licenses — but they can't force an insurer to pay your claim. That's where the courts come in. |
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The Texas court system is where real accountability happens. |
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When an insurance company has wrongfully denied your claim, acted in bad faith, or breached your policy, a lawsuit is often the only mechanism that actually compels them to pay. Texas courts can award you the full value of your original claim, additional damages for bad faith conduct, and in egregious cases, punitive damages designed to punish the insurer for their behavior. |
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Your attorney is the most important piece of the puzzle. |
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The TDI can regulate, and the courts can rule — but neither does you much good without someone who knows how to build a case, navigate the system, and apply real pressure on the insurance company. Insurance giants have entire legal departments dedicated to protecting their bottom line. The only way to level that playing field is to have an attorney in your corner who has been there before and knows exactly how to win. |
How to fight with an insurance company
Fighting an insurance company isn't just about being right — it's about being prepared. Insurance companies have sophisticated legal teams, experienced adjusters, and decades of practice finding reasons not to pay. If you're going to take them on, you need to do it the right way. Here's how:
Document everything from day one.
Every phone call, every email, every letter — keep a record of it all. Note the date, time, and name of every person you speak with. Insurance companies are experts at claiming they never said what they said, and a paper trail is your best defense against that tactic.
Get your medical treatment and stick with it.
Insurance companies will use any gap in your treatment as evidence that you weren't seriously injured. Whether you're dealing with a traumatic brain injury or neck pain after an accident, consistent, documented medical care is the backbone of any strong claim.
Don't give a recorded statement without an attorney.
Adjusters are trained to ask questions in ways that lead you into saying something that can be used to minimize your claim. You are not required to provide a recorded statement, and doing so without legal counsel is one of the most common — and costly — mistakes injury victims make.
Send everything in writing.
Verbal agreements mean nothing. Any communication with your insurance company about your claim, your coverage, or any settlement discussions should be documented in writing so there's no room for misrepresentation later.
Know when to escalate.
If your insurer is stonewalling, lowballing, or outright denying a valid claim, negotiating politely isn't going to move the needle. Suing an insurance company is sometimes the only language they respond to — and the moment you retain an attorney with a reputation for going to trial, the entire dynamic of your claim changes.
Hire the right attorney.
Not just any attorney — a Houston car accident lawyer who has taken on insurance giants before and won. Insurance companies track which attorneys settle every case and which ones aren't afraid of a courtroom. When they see a firm with a proven trial record on the other side, they take the claim seriously. When they don't, they won't.
Suing an insurance company — FAQs
How much can I sue an insurance company for?
The amount you can sue for depends on the value of your original claim, the damages their misconduct caused you, and whether bad faith or Texas Insurance Code violations are involved.
In bad faith cases, Texas law may entitle you to compensation beyond the original claim value — including court costs, attorney's fees, and in cases involving wrongful death or catastrophic injury, punitive damages. The worse they behaved, the more exposure they face.
Can you sue an insurance company for a car accident?
Yes — if the at-fault driver's insurance company wrongfully denies your claim, acts in bad faith, or refuses to offer fair compensation, you have legal grounds to sue. You may also have a claim against your own insurer if they fail to honor your uninsured or underinsured motorist coverage. Either way, a valid car accident claim that goes unpaid doesn't have to stay that way.
Can I sue my insurance company for emotional distress?
Yes — emotional distress is a recognized category of non-economic damages in Texas, and if your insurer refuses to compensate you for it despite policy coverage, you may have grounds to sue.
This is equally true in cases involving a truck accident, where commercial carriers and their insurers are notorious for deploying aggressive legal teams the moment a claim is filed. Either way, a valid car accident claim that goes unpaid doesn't have to stay that way.
Can you sue an insurance company for taking too long?
Absolutely — and Texas law is specific about it. Under the Texas Insurance Code, insurers are required to acknowledge your claim within 15 days and accept or deny it within 15 business days of receiving all documentation. When they miss those deadlines without justification, they may be in violation of the Code and subject to additional damages on top of your original claim.
How to sue an insurance company without a lawyer?
Technically, you can — but it's one of the most costly mistakes you can make. Insurance companies have entire legal departments whose job is to protect their bottom line, and going up against them alone means facing that machine without the tools, experience, or leverage to compete. Most personal injury attorneys work on contingency, meaning you pay nothing unless you win — so there's no good reason to go it alone.
Ready to fight back? Thiessen Law Firm takes on the giants — and wins.
The question isn't just can you sue an insurance company in Texas — it's whether you have the right team in your corner when you do. Insurance companies are not on your side. They have limitless resources, experienced legal teams, and a playbook designed to wear you down until you settle for less than you deserve. But they're not unbeatable — and we've proven that time and time again.
At Thiessen Law Firm, taking on the giants isn't just what we do. It's who we are. Mark Thiessen and Mike "The Insider" Pita have spent their careers going toe-to-toe with billion-dollar insurance corporations on behalf of real people who deserved better — and winning. We know their tactics, we know their pressure points, and we know exactly how to use that against them.
If your claim has been denied, delayed, or undervalued, don't accept it. Don't walk away. And don't try to fight them alone. Call Thiessen Law Firm at (713) 864-9000 or contact us online for a free consultation — because the giants have had the upper hand long enough.
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