So the reason I want to sue the insurance company is because I feel that they leaned to the lying driver's story over ours because in the end, the Insurance company doesn't have to pay a dime to either party. It is clearly a lie because we were stuck in rush hour traffic on that freeway so no way a 3rd party could of hit and run, there is no-where to escape. Also, I did not hear a 2nd hit. Also, the person who hit us at the time didn't say ANYTHING about a third party hitting them, that would of been the first thing out of her mouth.

The insurance Company KNOWS that there was no phantom driver, but they are choosing to take her lying story just so that they don't have to pay anything.

I want to sue them for having to pay for an insurance company that is practicing fraud. Do I have a case with this?

I would like to sue them for all the money that I have paid for insurance (over 10 years worth) for the premium insurance I have been paying

If it is YOUR State Farm uninsured motorist carrier that is denying your claim, you may have a first party bad faith claim. However, if it is the third party State Farm that is denying your claim, there is no third party bad faith claim. You have to look at them separately even though both of you have State Farm. If it is the other parties' carrier then all you can do is file a lawsuit against the driver and owner and make them pay that way.