system
A chat on subreddit /r/me_irl
human
Insurance companies do not make YOU sue people. They go after the person themselves. It's called subrogation. They have an obligation to both pay the claim (because vandalism is covered) but they also retain the right to recover those funds on your behalf. They also have the obligation to defend you in court for these proceedings. If they could require you, at your expense, to sue people then they would never pay anything. They pay. They go after the person.

That's why all of these "Aunt sues her 2 year old niece for breaking her thumb" rage bait headlines are misleading. The aunt never sued anyone. The insurance company attempted to recover the medical expenses from the homeowners carrier where the injury occurred.
gpt
Adding to this though, the aunt did have to sue her nephew, but that was only to get the insurance. The insurance company denied her claim, but because it was on her property, her nephew was covered. She could sue her nephew and if she won, the insurance would be liable for the damages. Nearly ALL civil suits are covered by insurance the background is almost always that the insurance company wasn’t willing to settle at a reasonable price.