Can I Get Sued for a Car Accident If I Have Insurance?
You paid for car insurance specifically to protect yourself if you were to cause an accident—so why are you now being served with lawsuit papers? Does car insurance cover if someone sues you? When someone causes a car accident, car insurance almost always is the party that ultimately pays out any settlement or jury award. However, that does not mean you cannot be sued. Knowing what to expect and when you are actually at risk of a lawsuit can help you minimize your stress.
Wondering how to protect yourself after a car accident and find out if you are entitled to compensation? Call Rocky McElhaney Law Firm to get started.
Understanding insurance vs. lawsuits
People often assume that insurance is essentially a shield against lawsuits. But the fact is that insurance does not stop you from being sued. It defrays the costs if you are sued or if you cause an accident. Car insurance coverage typically includes liability insurance. This provides you with legal representation if you are sued because of a car crash. It also gives the insurance company the right to negotiate a settlement on your behalf. Finally, liability insurance pays damages up to your policy limits.
But what happens if the injured person wants more compensation than your coverage provides? In that case, they may come after you personally.
How lawsuits happen even when you have insurance
Even with insurance, you could find yourself in the uncomfortable position of being publicly served with lawsuit papers after a car crash. Many personal injury attorneys will file a lawsuit right off the bat. They do this to show that they are serious about securing fair compensation for their client and to make it easier to proceed with a lawsuit if they are unable to negotiate a fair settlement.
You could also end up on the wrong side of a lawsuit if a victim’s damages exceed your policy limits. They may come after you personally for whatever insurance does not cover. This is somewhat common in wrongful death cases. When someone dies as the result of a car accident, their family is left covering their medical expenses, burial expenses, and the loss of earnings over the course of their career. These cases often exceed insurance policy limits.
You could also be sued personally if you engage in conduct that falls outside your insurance coverage, such as intentional harm or certain criminal acts. Insurance companies do have limits to what they cover—for example, they may not cover damage caused by habitual DUIs, road rage, or hit-and-run accidents. In those situations, the victim may be liable for all damages. Your insurer may not even legally be responsible for defending you for violating the terms of your policy.
Types of damages
When someone is injured in a car accident, they may be entitled to a wide range of economic and non-economic damages. Depending on the circumstances of a crash and the severity of a victim’s injuries, they may be awarded compensation for:
- Medical bills, including all current and future expenses related to the accident
- Lost wages
- Reduced earning capacity
- Property damage
- Pain and suffering
- Mental anguish and emotional distress
- Loss of enjoyment of life
- Punitive damages (typically only awarded in cases involving intentional misconduct, malice, or reckless disregard)
When does insurance cover you and when are you personally liable?
If you caused an accident due to standard negligence and the costs associated with the crash are within standard ranges, your insurance will likely kick in and cover all of the costs associated with the collision. What is considered standard negligence? The majority of car accidents are caused by negligence, not malice or wanton negligence. This includes errors like distracted driving, failing to yield right of way, or accidentally running a red light.
If you caused an accident due to something like criminal conduct, you may not be covered by your insurance policy. It is important to check the terms and conditions for your insurance, so you know exactly what they do and do not cover.
You may also be held personally liable if you let your insurance lapse. Unfortunately, this is fairly common—someone forgets to pay their car insurance renewal bill, the coverage lapses for a short period of time, and the individual is involved in an accident during that time. In these situations, you are fully liable for damages.
The likelihood of being sued
Someone being able to sue you does not always mean they will. First, a lot depends on your collectability. If you cause a crash that leads to $500,000 of damages and your policy maxes out at $100,000, the other party may choose to sue you for the remaining $400,000. But they will likely only do so if you actually have money to pay them with. Car accident lawyers typically only pursue claims they are likely to win and collect on, and a $400,000 judgment against someone who lives paycheck to paycheck has a near-zero chance of actually resulting in a payout.
Protecting yourself from lawsuits
If you are afraid of a lawsuit that could derail your financial wellbeing and future, you can check your insurance policy and make necessary changes. Consider carrying a policy that goes well above and beyond the limits required in your state. Yes, it costs more, but it also gives you peace of mind and protects you if you cause a collision. You may even want to look into taking out an umbrella policy that kicks in when your car insurance runs out.
Worried about your next steps after an accident? Call Rocky McElhaney Law Firm
The sooner you reach out to our team, the sooner we can begin working on your case and figuring out if you are entitled to compensation. Schedule your consultation now by calling us or reaching out to us online. We have offices in Nashville, Hendersonville, Clarksville, and Murfreesboro to serve you better.