Lawsuit Filed? What to Do When Your Insurer Won’t Provide Legal Representation

March 31, 2025

Car insurance companies generally have what’s called a “duty to defend.” This means that if you have an active policy and someone files a lawsuit against you, your insurer is contractually obligated to provide a defense attorney. Before buying a policy, you should make sure you have a thorough understanding — your insurer’s duty to defend applies in most cases, but most policies have some exceptions.

Here’s a look at some situations when an insurer might refuse to provide legal representation — and what to do if you must seek representation on your own.

Your car insurance company will usually provide you with a lawyer if you cause an accident and the other driver files a lawsuit against you. However, there are some situations when an insurer may refuse to defend you.

Reasons Why Insurers May Refuse to Defend

Understanding Potential Policy Exclusions

Your insurer’s duty to defend isn’t absolute. Your policy should detail when the insurance company is required to provide you with a lawyer — and when it isn’t. These are some common scenarios where an insurance company might not give you a lawyer:

The Other Driver’s Damages Exceed Your Policy Limits

If you cause a car accident, your insurance company will typically pay for the other driver’s losses. However, your insurance only pays up to your policy limit — and you’re on the hook for the rest.

This matters because the other driver might file a lawsuit against you to recover the remaining money they’re owed. Because your insurance company has already paid as much as it legally has to, it isn’t responsible for defending you against this additional lawsuit.

You Deliberately Caused the Crash — or the Insurer Thinks You Did

Insurance companies typically refuse to defend you if you deliberately cause a car accident. Some insurers consider driving under the influence of alcohol or drugs to be deliberately causing a crash. In these instances, your insurance company may not pay claims or defend you in any lawsuits stemming from a DUI crash.

You Didn’t Report the Accident Properly

Most insurance companies require you to promptly report any accident that could result in an insurance claim. Exact deadlines vary, but they typically require you to report accidents within several days. If you are able to, you should always notify your insurer of your accident as quickly as possible.

When an insurance company acts in bad faith, it may unfairly use your failure to promptly report your accident as a reason to deny your claim. For instance, if you were in a coma for a month after a car accident, you couldn’t possibly have reported your crash within several days. Many insurance companies have exceptions to reporting rules for situations like this, but an unscrupulous insurer might still try to deny your claim.

Need help after a car accident? Call Doug Terry Law at 405-463-6362 or get in touch online for a free consultation!

What to Do if Your Insurer Refuses to Defend

If your insurance company is refusing to defend you, you may be unsure of what to do. However, you shouldn’t assume that this initial denial means you have no hope of getting legal representation. You may be able to challenge your insurer’s decision, but you’re far more likely to be successful if you have a lawyer’s help. These are some of the key steps to take.

Seek Out an Experienced Insurance Lawyer

Insurance law is uniquely complex. Before challenging your insurance company’s refusal to cover you, you should seek out an attorney experienced with car insurance law. This situation may be disorienting for you, but attorneys handle cases like this on an almost daily basis.

Review the Reasons for Denial

Next, you should carefully review the insurance company’s reasons for refusing to defend you. Your attorney can help you understand the denial letter. Many insurance companies use deliberately convoluted language to confuse customers and discourage them from appealing, but your attorney will be able to see through that language.

If the denial letter is unclear about why the insurer is refusing to defend you, you should reach out for clarification before proceeding with your appeal.

Explain Your Side of the Story

You can present your case to the insurer yourself, but an attorney can boost your chances of success. Insurance companies often try to shut down customers or refuse to take their arguments seriously. However, because insurance companies know an attorney may pursue legal action against them, they’re often more inclined to listen to attorneys.

Pursue Further Action

If your insurance company is still unwilling to defend you, your attorney may be able to help you pursue further action. That might involve doing one or more of the following:

• Filing an appeal with the insurance company
• Filing a bad faith insurance lawsuit
• Filing a complaint with the Oklahoma Insurance Department.

Your attorney should be able to help you understand whether you’re likely to be successful on appeal. For example, if your insurance company is refusing to defend you because you deliberately chased down and hit someone with your car, it is almost certainly not obligated to pay for your attorney.

How Can an Attorney Help?

Let Doug Terry Law Be Your Advocate

Many people who purchase insurance policies make the mistake of thinking that insurance companies work for them. However, this is a misconception — insurance companies work for themselves. Sometimes, insurers will even deliberately shirk their contractual obligations to save money.

If your insurance company is refusing to defend you, an experienced attorney may be able to help. The Doug Terry Law team aims to hold insurance companies accountable when they act in bad faith. Our firm has spent years defending the rights of Oklahoma citizens, and we hope we’ll be able to help you, too.

If your insurance company is refusing to give you the legal representation you deserve, we might be able to help. Call us at 405-463-6362 or send us a message online to schedule your free consultation.