You pay your insurance bill every month. You expect them to be there when something goes wrong—whether it’s a car crash, a house fire, or a medical emergency. That’s the deal, right?
But what happens when your insurance company lets you down? Maybe they delay your claim for months with no good reason. Maybe they deny it without properly looking into it. Or maybe they keep offering you way less than your claim is worth—while you’re sitting there stressed out, trying to recover from everything else.
At some point, it stops being just frustrating. It starts to mess with your mental health. You can’t sleep. You feel anxious all the time. You start asking yourself:
“Can I sue my insurance company for emotional distress?”
The short answer is: yes, sometimes you can—especially if the insurance company acted in bad faith. But these cases aren’t always simple. In this blog, we’ll walk you through what emotional distress means, what counts as bad faith, and how much you might be able to sue for.
Understanding Emotional Distress in Insurance Disputes
Emotional distress refers to the psychological pain or suffering caused by someone else’s actions. This can include anxiety, depression, loss of sleep, or even physical symptoms like panic attacks. In the context of insurance disputes, emotional distress might come from:
- Constant financial stress because your valid claim was denied
- Fear of losing your home or car
- Emotional exhaustion from being ignored, lied to, or mistreated by an insurance representative
Emotional distress can fall under two main categories:
- Negligent infliction of emotional distress (NIED) – when someone’s carelessness causes mental suffering
- Intentional infliction of emotional distress (IIED) – when someone’s actions are extreme, outrageous, and intentional
When it comes to insurance, these situations typically come up in cases where the insurer didn’t just make a mistake—they acted unfairly, knowingly caused harm, or purposely avoided helping you when they should have.
What Is Bad Faith Insurance — And Does It Apply to You?
Insurance companies have a legal duty to act in “good faith” when dealing with policyholders. This means they must:
- Process claims honestly
- Pay valid claims promptly
- Communicate clearly and fairly
- Investigate claims thoroughly
When they don’t, that’s called bad faith.
Examples of bad faith behavior include:
- Refusing to pay a valid claim without a reason
- Ignoring communication or failing to respond
- Misrepresenting policy terms
- Offering unreasonably low settlement amounts
- Delaying payment on purpose
If your insurer has treated you unfairly, you may not only have a breach of contract case—you may also have grounds to sue for emotional distress. Especially if their actions caused you mental or emotional harm.
How Much Can I Sue For Emotional Distress?
The truth is, there’s no fixed amount for how much you can sue for emotional distress. It really depends on the details of your case. Here are the main things that can affect how much your emotional distress claim might be worth:
- How Severe Is Your Emotional Distress?
The more serious the emotional harm, the more money you may be able to recover. For example:
- Did the stress cause panic attacks, depression, or anxiety?
- Did it interfere with your job, family life, or ability to sleep?
- Did you need therapy, medication, or time off work to cope?
The court will look at how your mental and emotional health has changed—and how long those changes have lasted.
- Did the Insurance Company Act in Bad Faith?
If the insurance company knowingly mistreated you—by denying your claim without a reason, delaying your payments on purpose, or refusing to investigate your claim properly—you may be able to sue for more.
These are called bad faith insurance practices, and they can lead to higher payouts because the court wants to send a message: this behavior is not okay.
- Can You Show Proof of Your Suffering?
You don’t need to be hospitalized to sue for emotional distress, but you do need evidence. The stronger your proof, the better your chances of getting fair compensation.
This can include:
- Medical or therapy records
- Notes from doctors, psychologists, or counselors
- Personal journals or written statements
- Testimony from family, friends, or co-workers who’ve seen how you’ve changed
- Emails or letters from the insurance company showing their poor behavior
Even something as simple as a record of sleepless nights or a therapist’s note can make a big difference.
- Did the Stress Affect Your Physical Health?
Emotional distress doesn’t just stay in your head. It can affect your body, too. If the stress led to things like headaches, high blood pressure, stomach issues, or chronic fatigue, and you have medical documentation, you may be entitled to more compensation.
Can I Sue My Insurance Company For Emotional Distress?
Yes, under the right conditions, you can sue your insurance company for emotional distress. But you’ll need to show that their actions went beyond simple error or delay. You’ll need to prove they acted unreasonably, carelessly, or maliciously, and that it caused you real emotional harm.
- Denied Claims Without Proper Investigation
If your insurer denies your claim without investigating, that’s a red flag. Every claim should be looked into fairly and thoroughly. If they skip that step—and deny you anyway—it may be considered bad faith.
Imagine being in a car accident, filing a claim, and receiving a denial just days later, with no explanation or review of evidence. Meanwhile, you’re drowning in bills and emotionally overwhelmed.
That’s more than just inconvenience—that’s potential negligence and grounds for emotional distress damages.
- Unreasonable Delays or Lowball Offers
Another common issue is the runaround. Some insurance companies drag out the process for weeks—or even months. Others make “take-it-or-leave-it” offers that are far lower than your claim is worth.
This delay tactic isn’t just frustrating—it can lead to serious emotional stress, especially if you’re depending on that money to pay for a car, medical treatment, or rent.
And in some cases, those lowball offers are on purpose—an attempt to pressure you into settling quickly. That’s a bad faith move and can open the door for legal action.
- Harassment or Intimidation Tactics by Insurers
If an insurer crosses the line and uses aggressive, threatening, or manipulative tactics to avoid paying your claim, they may be liable for intentional infliction of emotional distress.
This includes:
- Repeatedly calling and harassing you
- Accusing you of fraud with no basis
- Threatening legal action to scare you off
- Misleading you about your rights or the law
These aren’t just shady tactics—they’re unethical, and in some cases, illegal. And if they cause emotional harm, you may have a strong case.
How a Personal Injury Lawyer Can Help You Fight Back
Facing off against your insurance company can feel like a battle you can’t win. After all, insurance companies have entire teams of lawyers and adjusters dedicated to protecting their interests. They have the resources and experience to make things difficult, and they might even try to pressure you into accepting a lowball settlement. That’s where you need a personal injury lawyer who knows exactly how to fight for your rights.
If your insurance company is acting in bad faith and causing you emotional distress, having an experienced attorney by your side can make all the difference. Here’s how Pacin Levine, P.A. can help you take back control and ensure your voice is heard:
- Reviewing Your Policy and Claim History
The first step in building a strong case is understanding what you’re working with. A skilled attorney from Pacin Levine, P.A. will carefully examine your insurance policy, as well as your claim history. They’ll look for any discrepancies, unfair denials, or delays that could be signs of bad faith. This is crucial because insurance companies often hide behind confusing policy language and fine print. Your lawyer can help decode this and spot any violations on the insurer’s part.
- Gathering Evidence of Bad Faith Behavior
Insurance bad faith claims require solid proof. If your insurer has been acting unfairly or negligently, your attorney will help gather evidence to support your case. This could include:
- Email correspondence or phone call records
- Documentation of delays, missed deadlines, or unexplained denials
- Evidence that the insurance company failed to investigate or properly assess your claim
- Witness statements or expert opinions
Your lawyer will know exactly what to look for and how to build a compelling case that proves your insurer acted in bad faith.
- Documenting Your Emotional Distress with Expert Testimony
Proving emotional distress can be tricky—it’s not as straightforward as a physical injury that can be seen or measured. But a personal injury attorney will help document the emotional harm you’ve experienced. This might include:
- Expert testimony from doctors or mental health professionals
- Medical records that link your distress to the insurance company’s actions
- Statements from family members, friends, or coworkers who’ve witnessed your struggle
Having professionals back up your claim can significantly strengthen your case and help you secure the compensation you deserve.
- Negotiating on Your Behalf — or Taking the Case to Court
Insurance companies don’t like to lose, and they’ll often try to settle for as little as possible. But with Pacin Levine, P.A. on your side, you don’t have to settle for unfair offers. Your lawyer will negotiate directly with the insurance company to get you a fair settlement.
If the insurance company refuses to offer a reasonable settlement or continue to act in bad faith, your attorney is ready to take the case to court. They’ll represent you in front of a judge or jury and fight for your emotional distress damages.
Speak to an Insurance Bad Faith Attorney About Your Case
Now that we’ve answered the question—can I sue my insurance company for emotional distress?—it’s important to understand what comes next. If you believe your insurer has acted unfairly and it’s taken a toll on your mental and emotional well-being, you may have grounds to file a lawsuit. But timing is critical. Every state sets its own deadlines for these types of claims, and key evidence can disappear quickly. Acting fast is essential to protecting your rights.
That’s why it’s important to speak with an experienced attorney as soon as possible.
At Pacin Levine, P.A., we’ve handled countless cases where insurers put profit before people—and we don’t let them get away with it. We’ll listen to your story, review the facts, and let you know if you have a strong claim. You don’t have to deal with the stress alone.Call Pacin Levine, P.A, today at 1-800-24-7-CRASH for a free consultation.
