Alyssa Lane
If you have auto insurance, you may assume that you are protected from being sued in the event of a car accident. However, this is not always the case. While your insurance company will typically provide you with an attorney and cover costs related to car accident court cases, there are situations in which you can be sued for more than your insurance covers. This usually occurs when the damages exceed the policy limits of your insurance, and the claimant may choose to file a lawsuit to seek additional compensation. In such cases, you could be held personally liable for any costs that surpass your insurance coverage. Therefore, it is essential to have adequate insurance coverage to protect yourself financially in the event of a car accident.
| Characteristics | Values |
|---|---|
| Can you be sued for low auto insurance? | Yes |
| What if your insurance company refuses to pay your claim? | Your attorney can file a bad faith claim against them |
| What if the other driver doesn't have insurance? | They will be personally responsible for any damages they cause |
| What if your damages exceed the other driver's insurance policy limits? | You can sue the at-fault person directly for more than their policy's limit |
| What if you have insufficient insurance coverage? | You could get sued if you have assets that can be taken by the claimant to compensate them |
| What if you disagree on who is at fault? | Litigation may be required to determine what percentage of fault each party bears |
| What if you can't agree on a settlement amount? | Litigation will likely result |
| What if the statute of limitations is approaching? | The claimant will likely file a suit to preserve their claim |
What You'll Learn
- If you are sued, your insurance company will provide you with a lawyer
- If you lose a lawsuit, your insurance company will pay up to the bodily injury limit
- If you are sued for more than your insurance covers, contact your insurance company and a lawyer
- If the person suing you wins more than your insurance limit, the court won't usually garnish your wages
- If you have assets, you could be sued even if your insurance company is willing to pay
If you are sued, your insurance company will provide you with a lawyer
If you are sued after a car accident, your insurance company will provide you with a lawyer. This is standard practice, and your insurance company will usually have a lawyer on retainer who will represent you in court and handle all legal matters. It is in your best interest to cooperate with this professional as much as possible. Make copies of all the legal documents you have received, and forward those documents to your attorney. Attach your auto insurance policy number to the documents, along with your name and phone number. If you are served with a subpoena or other legal document, contact your attorney immediately. Your lawyer will need to respond to these documents within a certain timeframe, and missing a deadline could hurt your case.
If you are unhappy with the lawyer provided by your insurance company, you can hire a different attorney, but you will need to pay the legal costs yourself. You may want to look for a specialised accident insurance lawyer or an attorney with experience in lawsuit insurance cases.
It is important to notify your insurance company of a claim or potential claim as soon as possible. Once they have been notified, your insurance company will evaluate the facts, gather evidence, and decide who was at fault. If the accident was your fault, your insurance company will attempt to work out a settlement on your behalf with the claimant (the injured party who could potentially sue you). If they are unable to reach a settlement, it is usually for one of the following reasons:
- The claimant and your insurance company cannot agree on whether you were at fault for the accident, or the percentage of fault that each party bears.
- The claimant and your insurance company cannot agree on a settlement amount.
- The statute of limitations is approaching, and the claimant needs to file suit before their rights expire.
- The value of the case exceeds the amount of your insurance coverage, and you have assets that the claimant can target to compensate them for their losses.
In these situations, you may be sued, even if your insurance company is willing to pay the claimant. If you are sued, you will be served with legal papers, and you should immediately send these to your insurance company. They will then hire and pay for a lawyer to defend you.
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If you lose a lawsuit, your insurance company will pay up to the bodily injury limit
In the event of a car accident, your insurance company will typically attempt to settle the case out of court. They will evaluate the facts, gather evidence, and decide who was at fault. If the accident was your fault, your insurance company will try to negotiate a settlement with the claimant (the injured party). However, if they are unable to reach an agreement, it may lead to litigation.
During the legal proceedings, your insurance company will usually provide you with an attorney who will represent you in court and handle all legal matters. This attorney will be hired and paid for by your insurance company. It is in your best interest to cooperate fully with this professional. Provide them with all the relevant legal documents and evidence related to the case.
If you lose the lawsuit and are found responsible for damages exceeding your insurance coverage, there may be ways to seek additional compensation. You can try to collect the remaining amount directly from the defendant, provided they have the financial means to pay. Alternatively, if there are multiple defendants in the accident, you can sue each of them to potentially receive financial recovery beyond the limit of a single insurance policy.
Additionally, some individuals or businesses may have an umbrella insurance policy, which provides additional coverage beyond the primary layer of insurance. This type of policy may come into play if the damages exceed the limits of the primary insurance.
It is important to remember that each state may have its own specific laws and procedures regarding insurance policies and liability in car accidents. Consulting with a knowledgeable attorney can help you understand your rights and options in such situations.
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If you are sued for more than your insurance covers, contact your insurance company and a lawyer
If you are sued for more than your auto insurance covers, the first step is to contact your insurance company and a lawyer. While your insurance company will provide you with an attorney, you can also hire your own lawyer if you feel their appointed attorney is not qualified to handle your case. However, you will have to pay the legal costs yourself if you choose to hire a different attorney.
Your insurance company will try to settle the case out of court and limit the damages. They will provide you with an attorney who will represent you in court and handle all legal matters. It is in your best interest to cooperate with this professional as much as possible. Provide them with all the legal documents you have received and attach your auto insurance policy number, name, and contact information. If you are served with a subpoena or other legal documents, forward them to your attorney immediately as they will need to respond within a specific timeframe.
If you believe you are not responsible for the accident, it is up to you to prove your innocence. Contact the reporting officer, request a copy of the accident report, gather evidence, and collect photos and witness statements from the scene of the accident. Document everything and be prepared to present your case in court.
Keep in mind that if you lose the lawsuit, your insurance company will only pay up to the bodily injury limit specified in your policy. You will be personally responsible for any costs exceeding your policy limit. In such cases, the injured party may try to recover their losses by seizing your assets or garnishing your wages. However, there are state laws that exempt certain properties, such as your primary residence, from being taken over by a creditor. Additionally, retirement assets held in specific plans may also be exempt from recovery.
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If the person suing you wins more than your insurance limit, the court won't usually garnish your wages
If someone sues you after a car accident, your insurance company will only pay up to your policy's bodily injury limit. If the person suing you wins more than your insurance limit, you will be personally responsible for the costs exceeding your policy limit. However, the court typically won't garnish your wages or take your home. While the lawyers representing the other side may try to scare you with such threats, it is rare for a court to garnish your wages. This is usually only done if the government is trying to recover taxes or if you are behind on child support payments.
In the case of a car accident lawsuit, the judge will usually be more lenient, especially if you are a single parent or guardian with a low income and children to support. However, if you get a significant pay increase down the road, the court may reconsider the issue, and you may have to make payments.
If you are sued for more than your insurance covers, it is important to contact both your insurance company and your appointed attorney as soon as possible. They will provide you with the necessary information and guide you on the best course of action. Additionally, if you believe you are not responsible for the accident, it is up to you to prove your innocence by gathering evidence, obtaining witness statements, and presenting your case in court.
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If you have assets, you could be sued even if your insurance company is willing to pay
For example, if you have a home, a boat, or available funds in your bank accounts, these could be taken from you to compensate the claimant. If you have a job, your wages could be garnished until you pay off all the damages accumulated by the claimant due to their injuries. This is done through a court order, with a set percentage automatically deducted from your paycheck every pay period. Generally, this is limited to about 25% of the person's weekly earnings.
Your car, savings, property, and even valuable items in a safety deposit box such as jewellery are also fair game.
Therefore, it is important to make sure you have adequate auto insurance coverage to protect yourself in the event of an accident.
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Frequently asked questions
Yes, you can be sued for more than your auto insurance covers. If your insurance company is unable to reach a settlement with the claimant, it is usually due to one of the following reasons:
- The claimant and your insurance company cannot agree on whether you were at fault for the accident.
- The claimant and your insurance company cannot agree on a settlement amount.
- The statute of limitations is approaching, and there is insufficient time for the parties to negotiate.
- The value of the case exceeds the amount of your insurance coverage, and you have assets that the claimant can target.
If you lose a lawsuit and your insurance company doesn't cover all the costs, the court will not typically take your home or garnish your wages. You may, however, be ordered to pay the remaining amount directly to the claimant. This can be difficult if you don't have the cash or assets to do so.
If you are sued for more than your auto insurance covers, you should contact both your insurance company and your attorney as soon as possible. They will advise you on the best course of action and what you may be liable for.
