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Summary
Even with insurance, you could still be personally sued for a car accident.
Table of Contents
Can You Be Personally Sued for a Car Accident If You Have Auto Insurance
When involved in a car accident, there is a chance you could still be personally sued for damages even if you meet your state's minimum auto insurance requirements.
The reason a party involved in a motor vehicle accident has the right to personally sue you, even if you have insurance coverage, is that insurance doesn't grant legal immunity to its policyholder, and if an injured claimant believes your actions in the car accident to be extremely negligent/reckless, or their damages exceed your auto insurance policy limits they may seek to sue.
Being sued personally following a car accident can be a substantial problem as it puts your savings, property, wages, and other personal assets at risk, which is why in such a situation it's highly recommended to schedule a free consultation with an experienced Las Vegas car accident attorney from the Rodney Okano Car Accident Lawyer Law Firm.
Our Nevada car accident lawyers can identify the reason why you're being sued after a car accident and devise a plan to protect your legal rights and property.
Set up a free case evaluation with a Las Vegas car accident lawyer from our law firm today by calling (702) 566-3600.
Reasons Why Someone Might Sue You for a Car Accident, Even If You Have Insurance
There are many reasons why someone might personally sue you after a car accident, and understanding the most common reasons is crucial to potentially pinpointing the reason behind why you're being sued.
The Car Accident Damages Exceed Your Policy Limit
All auto insurance policies come with coverage limits, some higher, while some lower.
If a party involved in the car accident suffers damages, such as medical expenses, property damages, and lost wages, that exceed your insurance policy limits and you're found to be primarily at-fault for the motor vehicle accident, the injured party may sue you personally to recover the damages not covered by your insurance company.
Your Insurance Company Denies the Claim
If another driver involved in the car accident files an insurance claim with your car insurance company, and they deny it, due to a policy exclusion, technicality, or you missing your premium payment, the driver may directly sue you in an attempt to obtain compensation for their damages.
Disputes over Liability
In most car accident cases, the insurance companies are the ones who investigate an accident and determine who's at fault and by what percentage.
If an injured driver disagrees with the insurance company's opinion on who's at fault, they may file a lawsuit against you, for an judge or jury to determine legal liability.
A Party Pursues Punitive Damages
If you are involved in a car accident and your actions were extremely negligent or reckless, such as driving while intoxicated, street racing, or engaging in road rage, the other driver may sue for punitive damages, which are not typically covered by standard auto insurance policies.
How Common Are Lawsuits in Car Accident Cases
Lawsuits in car accident cases are especially rare, with only about 3% to 5% of car accident claims resulting in a full-fledged lawsuit.
Most car accident cases are handled through attorney negotiations and private agreements between the parties involved.
However, certain factors in a car accident case could make a case more prone to a lawsuit, such as if:
- The accident resulted in serious injuries or deaths
- There are disputes over fault
- The insurance companies involved in denied or delayed claims
In a situation where your car accident case has the potential of going to court, it's crucial to enlist the help of one of the experienced Las Vegas car accident attorneys at the Rodney Okano Car Accident Lawyer Law Firm, as they can help guide you through the complications a personal injury lawsuit can bring.
What to Do If I'm Being Personally Sued After a Car Accident
Being personally sued after a car accident can be a frightening experience, especially if the car wreck was caused by mere mistakes or poor judgment.
However, understanding what to do in the event you're being sued after a motor vehicle accident can significantly improve your chances of mitigating any financial damages.
Review Your Coverage and Contact Your Insurance Company
Once learning that you may be personally sued for a car accident, a good first step is to review your insurance policy and look for any coverage relating to lawsuit legal defense or coverage covering the costs of a possible lawsuit.
Additionally, notify your insurance company that a lawsuit has been filed against you; however, avoid going into too great a detail, as your words could be used against you.
Take Immediate Action on the Lawsuit
Failing to respond to the lawsuit in a timely manner is probably one of the worst things you can do, especially since, depending on the time that has elapsed, the court could potentially issue a default judgment against you, leaving you with no chance to defend yourself.
Consult with a Personal Injury Attorney
After having a car accident lawsuit filed against you, obtaining legal representation from a group of experienced attorneys is highly recommended.
An attorney can help you navigate the legal process, gather evidence, and utilize your insurance limits to the best of their ability to avoid you being personally responsible for any damages.
Don't Discuss the Lawsuit in Public
Once you are involved in a lawsuit, avoid speaking about it with anyone besides your attorney, as words you say or posts you make on social media could be used against you in court.
Will Insurance Cover Lawsuit Costs
In most cases, your auto policy covers costs stemming from an auto accident lawsuit.
Coverage for lawsuits resulting from car accidents is typically listed under your liability insurance policy and outlines the lawsuit expenses your car insurance company will pay for, which typically includes:
- Attorney fees
- Court and administrative fees
- Court-ordered judgments against you
However, there are situations where your auto insurance company may not cover lawsuit costs, including if:
- You violated your insurance coverage policy terms
- The damages resulting from the motor vehicle wreck case exceed your policy limit
- The car crash stemmed from you committing an international or criminal act
- You failed to report the lawsuit to your insurance carrier
In situations where your personal injury case transforms into a lawsuit, it is best not to rely on your insurance company to provide you with financial protection, as they're always looking for a way out.
Instead, contact the experienced personal injury lawyers at the Rodney Okano Car Accident Lawyer Law Firm, who will fight on your side till the end.
Obtain a free case review with one of our attorneys today by calling (702) 566-3600.
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Rodney Okano Car Accident Lawyer is a Las Vegas personal injury law firm with over 20 years of experience helping clients obtain maximum compensation following injuries from accidents such as car crashes, worksite injuries, and slips and falls. Over those years, The Rodney Okano Car Accident Lawyer Law Firm has become an experienced law firm that can ensure exceptional results for any of its clients.
