A car accident can leave you with serious injuries, mounting medical bills, and lost wages—but figuring out who to sue (the at-fault driver or their insurance company) isn't always straightforward. While insurance companies are typically the ones who pay settlements, legal action may sometimes require naming the driver directly. The right strategy depends on state laws, insurance policy limits, and the specifics of your case. This guide breaks down the key considerations so you can make an informed decision.

1. Understanding the Role of Insurance in Car Accident Claims

In most cases, you don't sue the insurance company directly—you file a claim, and they pay out based on the driver's policy. However, insurers have a legal duty to act in good faith, and if they unreasonably deny or lowball your claim, you may have grounds for a bad faith lawsuit. If the driver has insufficient coverage, you might need to sue them personally to access additional assets.

Key points:

• Insurance companies pay claims but aren't automatically defendants.

• Bad faith lawsuits apply if the insurer unfairly denies or delays payment.

• If policy limits are too low, suing the driver personally may be necessary.

2. When Suing the Driver Makes Sense

A. The Driver Has Significant Personal Assets

If your damages exceed the at-fault driver's insurance limits, suing them personally may be the only way to recover full compensation. For example, if they have property, investments, or high earnings, a court could order wage garnishment or asset seizure.

B. The Driver Was Uninsured or Underinsured

If the driver has no insurance (or minimal coverage), your options include:

• Filing a claim under your own uninsured/underinsured motorist (UM/UIM) coverage (if you have it).

• Suing the driver directly if they have recoverable assets.

C. Punitive Damages Are Involved

If the driver was grossly negligent (e.g., drunk driving, reckless speeding), you might sue for punitive damages, which insurance typically doesn't cover. This requires a direct lawsuit against the driver.

3. When Suing the Insurance Company Makes Sense

A. The Insurer Acts in Bad Faith

If the insurance company:

• Denies your claim without justification.

• Delays payment unreasonably.

• Offers a settlement far below fair value.
  …you may sue them for bad faith insurance practices, which can result in additional penalties.

B. The Policy Covers Your Damages

If the driver has sufficient coverage, settling with the insurer is usually faster and avoids litigation. Most cases resolve through negotiation rather than lawsuits.

4. Key Factors to Consider Before Suing

A. State Laws on Liability & Insurance

• No-fault states require you to file with your own insurer first.

• At-fault states allow direct claims against the other driver's insurance.

• Some states cap damages, affecting whether suing is worthwhile.

B. Policy Limits vs. Your Damages

• If medical bills exceed the driver's policy, suing them personally may be necessary.

• If their coverage is enough, settling with the insurer is simpler.

C. Evidence of Fault & Damages

• Strong evidence (police reports, witness statements, medical records) strengthens your case.

• Weak evidence may make insurers resist paying, forcing a lawsuit.

5. Practical Steps to Take

1. File an insurance claim first—most cases settle without lawsuits.

2. Consult a lawyer if the insurer denies or lowballs your claim.

3. Consider small claims court if damages are minor (varies by state).

4. Sue the driver only if they have assets beyond insurance.

5. Sue the insurer only for bad faith—not standard claims.

Final Verdict: Which Should You Sue?

• Sue the driver if they have personal assets, were uninsured, or you're seeking punitive damages.

• Sue the insurer only if they act in bad faith.

• Negotiate first—most cases settle without going to court.

Bottom Line

The best legal strategy depends on your damages, the driver's insurance, and state laws. An experienced car accident attorney can help you decide whether to pursue the driver, the insurer, or both for maximum compensation.