Legal Question in Insurance Law in California
Can an insured sue a defendant to recover damages to their insurer so that their insurance rates don't go up?
For example, let's say a neighbor causes a person property damage because of the neighbor's negligence. Let's say that neighbor does not have insurance. Let's say that the person who suffered damages makes a claim on their own insurance. Let's say their own insurance pays that person. Can that person then sue the neighbor to recover the damages paid by their insurer so that they can pay back their insurer so that their insurance rates don't go up?
1 Answer from Attorneys
No. For two reasons. 1. Property and Casualty rates are based on claims made, not whether the money comes out of the insurance company's pocket or not. Even a claim not involving a third party, and that the insurance company deems is not covered, affects your rates. 2. Once the insurance company pays you, they own the claim against the neighbor, and they maintain attorneys on staff to determine if the neighbor has assets to reimburse them, and to sue for reimbursement if there is a chance of recovery. You're out of the picture once the claim is paid.
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