Auto Insurer: Suing At-Fault Drivers

If you've been injured in a car accident, you may be wondering who to sue to receive compensation for your injuries and damages. In most states, when an accident occurs, one party is usually considered at-fault and is responsible for covering the injuries of the other driver and their passengers, typically through their liability insurance. This means that the at-fault driver's insurance company becomes financially responsible for the claim, up to the limit of the insurance policy. However, there may be situations where the insurance company refuses to pay or the claim exceeds the insurance coverage. In such cases, the injured party may consider suing the at-fault driver directly. It's important to note that each state has its own laws regarding fault determination and insurance requirements, so it's always best to consult with an attorney to understand your specific legal options.

The at-fault driver's insurance company becomes financially responsible for the claim

When an accident occurs, one party is usually considered "at-fault" and is responsible for covering the injuries of the other driver and their passengers. This is usually done through the at-fault driver's liability insurance coverage. The at-fault driver's insurance company becomes financially responsible for the claim, up to the limit of the insurance available on the policy. This allows the injured driver to open a claim with the at-fault driver's insurance company to obtain compensation for their injuries and damages.

In the event that the at-fault driver does not have insurance or has insufficient insurance coverage, the injured driver can turn to their own insurance company for compensation, if their policy includes uninsured or underinsured motorist coverage. This coverage will pay for the injured driver's car repairs, medical bills, and, in some cases, a rental car. The injured driver's insurance company will then attempt to recover the costs from the at-fault driver's insurance company.

It is important to note that the insurance company is only obligated to pay claims for which the driver covered by the contract becomes "legally responsible". This means that the mere availability of insurance coverage does not guarantee that the insurance company will pay the claim. Before the insurance company is required to pay, the injured driver must obtain a court judgment against the at-fault driver, establishing their legal responsibility for the damages caused in the accident.

To determine who is at fault in an accident, claims adjusters typically review witness statements, police reports, photos of the accident scene, and the specific state's traffic laws. This process can vary in complexity depending on the details of the accident. Once fault is established, the at-fault driver's insurance company becomes financially responsible for the valid claims made against their insured driver.

Overall, the financial responsibility for the claim rests with the at-fault driver's insurance company, up to the limits of the insurance policy. In cases where the insurance coverage is insufficient, the injured driver's own insurance company may provide additional compensation, and the at-fault driver may be personally responsible for any remaining costs.

The injured driver can open a claim with the at-fault driver's insurance company

If you are injured in a car accident that was not your fault, you can open a claim with the at-fault driver's insurance company. This is called a third-party claim.

Gather information at the scene:

• Take pictures of the other driver's insurance card and driver's license. If they don't have an insurance card, ask for their name, phone number, insurance company name, and policy number.
• Exchange information with the other driver, including names, addresses, phone numbers, insurance information, driver's license numbers, and license plate numbers.
• Get statements and contact information from witnesses, if there are any.
• Take pictures of the accident scene and vehicle damage. It is best to take pictures of the vehicles as they sit right after the accident. If you had to move due to safety concerns, take photos of each vehicle's damage.
• If the police responded to the accident, get a copy of the report and send it to the other driver's insurance company.

Contact your insurance company:

Let your insurance company know about the accident. This establishes your good-faith accident-reporting effort and can aid you if the other party's insurer denies responsibility for the accident or if their insurance was not valid at the time of the incident, and you need to file a collision claim.

File a claim with the other driver's insurance company:

When you get home, file a claim with the other driver's car insurance. You may need to inform the other person's insurer that you've been in a crash with their policyholder, as motorists who cause accidents are often reluctant to report them. Give the insurer the facts of the accident to show that their driver is at fault and liable for your damages.

Decide if you need to file a legal claim:

The at-fault driver's insurer may tell you to seek payment from your own insurer because they have no evidence of their policyholder's fault. Although most states have made it illegal for an insurer to deny claims without reasonably investigating the facts, you may not want to fight the other person's insurance company. If you file a claim with your insurer, they will likely choose to fight the other insurance company for compensation.

File a claim with your car insurance company:

If all else fails, even if you are not at fault, you can file a claim with your insurance company for payment of damages and injuries if you have the right coverages. If you have collision insurance, file a claim with your carrier, but you will have to pay your collision deductible toward repairs. However, you may get that money back if your insurer can settle with the other driver's insurance company. If the other driver is uninsured and you have uninsured motorist coverage property damage (UMPD), you can file a claim for your vehicle's damage without a deductible.

The injured driver may turn to their own insurance company for compensation

If the at-fault driver's insurance company does not cover all the expenses of the injured driver's claim, the injured driver may turn to their own insurance company for compensation. This is called underinsured or uninsured motorist coverage. This is only possible if the injured driver's insurance policy has more coverage than the at-fault driver's policy. The injured driver's insurance company will then analyse the claim from the perspective of the at-fault driver, asserting any available defences.

It is important to note that an insurance company is only obligated to pay claims for which a driver covered by the contract becomes "legally responsible". This means that the availability of insurance coverage does not guarantee that the insurance company will pay the claim. Before the insurance company is mandated to pay a claim, the injured driver must obtain a court judgment against the at-fault driver to hold them legally accountable for the collision-induced damages.

To obtain a judgment, the injured driver must file a lawsuit naming the at-fault driver as the defendant. The injured driver must prove to a judge or jury that the defendant was responsible for the collision and that the injuries were a direct result of the collision. Such a lawsuit is filed against the at-fault driver personally, so the insurance company cannot be sued directly after an accident.

The injured driver's insurance company may try to recover what they paid from the other driver's insurance company. If they succeed, the injured driver may get their deductible reimbursed.

The injured driver must obtain a court judgment against the at-fault driver

In the event of a motor vehicle collision, the injured driver has a legal right to sue for compensation. However, the process of obtaining compensation can be complex, and the source of compensation may not always be clear. When both drivers have insurance, the injured party can open a claim with the at-fault driver's insurance company. The insurance company is then financially responsible for the claim, up to the limit of the insurance policy.

If the at-fault driver's insurance does not cover all the expenses of the injured driver's claim, the injured driver may turn to their own insurance company for additional compensation if their policy provides more coverage than the at-fault driver's policy. This is known as underinsured or uninsured motorist coverage.

It is important to note that an insurance company is only obligated to pay claims for which the driver becomes "legally responsible". Therefore, before the insurance company is required to pay, the injured driver must obtain a court judgment against the at-fault driver. This process involves filing a lawsuit naming the at-fault driver as the defendant and presenting the case before a judge or jury. The injured driver must prove that the defendant was at fault for the collision and that the injuries were a direct result of the collision.

It is worth mentioning that the insurance company is responsible for providing legal representation for the at-fault driver in such cases. The insurance company's attorneys will vigorously defend the case to reduce the amount they may have to pay in the event of an unfavourable verdict.

While the injured driver cannot directly sue the insurance company after an accident, they can take legal action against the at-fault driver, who is personally responsible for the harm caused. Obtaining a court judgment is a crucial step in holding the at-fault driver and their insurance company accountable for the damages resulting from the collision.

The insurance company will hire and pay for a lawyer to defend the case

When a driver is at fault in a car accident, the insurance company is responsible for hiring a lawyer to defend the insured driver in the lawsuit. The insurance company will also pay for the lawyer. This is part of the insurance company's contractual "duty to defend", which is an obligation that arises as part of all different types of liability insurance policies.

The "duty to defend" clause in a liability policy means that the insurance company must work out the details of the legal defence. This includes the responsibility to hire lawyers and mount a legal defence. The insurance company will also make decisions such as whether to settle or take the case to court. This takes the pressure off the insured individual, as they won't have to track down an attorney, negotiate terms, or pay legal costs upfront.

The "duty to defend" differs from a "duty to indemnify" policy, which only requires the insurer to pay the insured individual back once they've completed the legal fight for a covered claim. This compensation is called indemnification.

However, there are exceptions to the "duty to defend". Almost all automobile insurance policies outline circumstances that will void the insurer's duty to defend the policyholder, including the obligation to provide a lawyer to defend the insured against a civil lawsuit filed by the other driver. For example, if the insured policyholder fails to give the insurer notice of the accident within the time limits specified in the insurance policy, the duty to defend might be voided. Another exception is if the policyholder is accused of having acted intentionally to cause the car accident. Automobile insurance policies generally provide coverage only for negligent actions, not intentional actions.

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