Do you sue the other driver or their insurance company after a car accident?

Question

Yes, someone can sue you for a car accident even if you have insurance. Unless you live in a no-fault state, you can easily be sued for financial and personal damages in car accidents that you cause. If you have a liability insurance policy (which is required in most states), your insurance company will likely pay for an attorney to defend you in court. However, there are certain situations where they aren’t obligated to do so.… read full answer

When Insurance Doesn’t Have to Pay for a Lawyer

You did not notify the insurance company within a certain timeframe, which can be anywhere from 5-30 days, depending on the specifics of the policy.

The cost of the other driver’s damages exceeds the limits of your policy.

You intentionally caused the accident.

If you have car insurance and you’re sued after a car accident that you caused, it’s likely for one of two reasons: either you don’t have enough insurance to cover all of the other driver’s expenses or the insurance claim process is taking a long time. If the first applies to you, your insurance company is under no obligation to help you once they’ve paid up to the limits of your policy.

However, the rules for filing a lawsuit after a car accident are different in no-fault states. No-fault states require drivers to carry personal injury protection (PIP) insurance, which provides coverage for minor injuries sustained in an accident. This eliminates the need for small personal injury cases to go to court, as every driver is protected by their own insurance policy. In these 12 states, you can only file a lawsuit against the other driver if your injuries are severe or your economic damages have exceeded a certain amount. The specific thresholds for each scenario vary depending on the state.

While you can’t control whether or not the other driver will sue you after an accident that you caused, there are steps that you can take to put yourself in the best position possible. The most important things are to notify your insurance company of the accident as soon as possible and to understand the limits of your policy. If you do end up being sued, take the time to understand what exactly you’re being sued for and what steps your insurer is taking to help you.

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Answer 1 · 2020-10-19 23:46:40

WalletHub, Financial Company

@WalletHub 10/19/20 This answer was first published on 10/20/20 and it was last updated on 10/19/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You sue the other driver after a car accident, not their insurance company. If there is a judgement made in your favor after suing the other driver, their insurer will pay for it, up to the limits of the driver’s policy. Once the limits have been reached, it is the other driver’s responsibility to pay the remaining sum. However, your ability to collect damages will vary between states.

State Laws Regarding Accident Lawsuits

How you are awarded damages in a lawsuit after an accident depends heavily on your state’s laws on negligence. Four states and the District of Columbia follow a rule of “contributory negligence.” Under this rule, if you contributed to the accident at all, then you won’t be able to collect damages. Most other states use a “comparative negligence” system, which means that damages are awarded based on the individual’s share of the fault.

There are also 12 no-fault states that strictly limit when you can file a lawsuit against the other driver. You can only sue the other driver if you sustained a severe injury, since your own insurance policy pays for your medical expenses regardless of who is at fault.

When You Can Sue an Insurance Company Directly

In certain situations, it could be possible to sue the other driver’s insurance company if they are acting in bad faith. Examples of this would be if they refuse to pay a claim that you are owed, or if they deny your claim without explanation. However, this is a tricky route to navigate, and it should only be utilized if the insurance company acts in an unethical manner.

If the Other Driver is Uninsured

If the other driver is uninsured, a lawsuit might be tricky. An uninsured driver is unlikely to have the assets to pay any damages you might be awarded.

In these situations, you need to rely on uninsured/underinsured motorist coverage, personal injury protection (PIP), or collision coverage to pay for your expenses when the accident was not your fault. If you don’t carry any of these types of coverage, then you’ll be responsible for paying all of your expenses out of pocket.

Answer 2

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Do you sue the other driver or their insurance company after a car accident?

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State Laws Regarding Accident Lawsuits

When You Can Sue an Insurance Company Directly

If the Other Driver is Uninsured

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