I want to know if it is legal for an attorney to make an insurance claim without being given permission.?

We were involved in a car accident and the other driver was at fault. My husband has been offered the max which is $50,000. But according to his attorney, after paying back medical bills etc., there really won't be much money left over. So my husbands attorney kept suggesting that we make a claim thru my grandparents home owners insurance so that we could have money in our pockets for the lost wages.
Of corse this made no sense to either one of us because the wreck had nothing to do with my grandparents!! They weren't with us when the accident occurred & We weren't in their vehicle when the accident occurred. They had nothing to do with this accident what-so-ever!!!
By us living in the same house as my granparents we are supposedly somehow covered under their homeowners insurance.
Well the attorney kept puhing for us to talk to grandparents about this possible claim we could make thru their homeowners insurance and I told him that they wouldn't go for that plus they were too old and didn't need the stress of their rates going up on them etc. etc.
He tried to tell me their rates wouldn't necessarily go up but I know better.
One day while I was speaking with my husbands attorney, my grandfather walked into the apartment & the attorney was trying to explain more to me about this claim my husband could make and I asked him if he would like to speak with my g-pa cuz he had just walked in the door.
So the attorney started explaining a little about how we could make a claim against their homeowners isurance, of corse he was cut-off by 78yr old g-pa telling him he was crazy. The attorney then asked my g-pa the name of his homeowners insurance company and exactly how to spell my g-pas last name. That was it!!! End of conversation.
Next thing we know, my grandparents phone is ringing off of the hook with phone calls from their homeowners insurance company regarding a claim that was being made for my husband.
Nobody ever said that it was ok to go ahead and do this. In fact, my husband and I were very adamant about not pursuing this, as we didn't want to involve them in something they didn't have anything to do with.
All that attorney did was get my gparents home owners insurance companys name and how to spell my gparents last name correctly and there is a claim open now!!!
My grandparent rates not only went up, but their insurance company completely dropped them all together!!!!
I want to know if that was legal what the attorney did, not having been given the permission to file any claim with the homeowners insurance.

An attorney, under the ethics rules, is supposed to be a zealous advocate for the client. That means going the extra mile.

Having said that, I think the attorney went way too far. You specifically instructed him not to file the claim, and he disobeyed specific instructions from clients. He will probably say that this was a legal decision (which is in his ballcourt) but it was really your decision because it affected you personally. You were covered under your gpa's insurance, and the result of your attorney's action done contrary to your instruction is that you are no longer covered under your gpa's insurance.

As to whether or not your accident and lost work was covered under the policy depends on what the policy said. Although unlikely, it is possible.

If I were you I would so the following:
Send a letter to the attorney firing him immediately. Tell him you intend to file a claim against him with his insurance company and against him with the bar association. Demand that he reimburse you for your losses and your gpa for his losses. Calculate them, and tell him to send you a check immediately and waive any and all fees from your case in writing, or you will be required to seek counsel to pursue a malpractice claim against him. Instruct him to forward a copy of the letter to his insurance carrier immediately, and give him 14 days to make all payments, return your file and provide a written waiver of all fees and costs associated with your case.

If he hasn't gotten back to you in 14 days, file a complaint with the state bar association (forms are probably online), go hire an attorney that takes attorney malpractice cases, and authorize him to really go after this attorney. Your gpa should be one of the complainants.

** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. Answering this question does not indicate an attorney-client relationship. **

i'll bet you signed something when you hired the attorney that allows him to file claims to whomever he wants. maybe you can call the insurance company yourself and tell them what is going on, they might be able to help you get out of it. i'm sure they don't want to pay off the attorney either