Can Someone Sue You For A Car Accident If You Have Insurance

Posted August 30, 2024 | Personal Injury Blog

Yes, you can get sued even when you have car insurance. We buy auto insurance with the expectation that it will protect our interests if we get into an accident that was our fault, but it does not prevent the other party from suing us.

If you are being sued or someone is threatening legal action against you after a car wreck, seek qualified legal advice from a trusted car accident lawyer. While your insurance company may provide legal counsel to defend you in a suit regarding a claim on your policy, this will not always be the case. Getting advice from a qualified car accident lawyer can help you recognize where you stand and how to move forward.

This post will explore why you may find yourself being sued even if you have insurance and what a car accident lawyer could do for you.

What Car Insurance Covers

If we accidentally cause an accident on the road, liability insurance can cover the other party’s losses and our legal costs. This includes the injured party’s medical expenses, lost wages, and your legal expenses if you get sued. However, it will only pay out up to your policy limits.

Liability insurance requirements also vary from state to state.

Liability insurance in Utah

The Utah Code 31A-22-302 requires that all passenger cars and trucks must maintain no-fault, bodily injury, and property damage liability insurance. 

Currently, the minimum insurance required is:

• Bodily injury: $25,000 per person

• Bodily injury: $65,000 per accident

• Property damage: $15,000

This may sound like a lot, but medical expenses can quickly exceed $25,000. If that happens, you may get sued personally for the balance. The plaintiff could come after your assets, including your savings, home, or other property, to pay for their compensation.

Therefore, many insurance companies recommend that Utah drivers take out a minimum of $100,000 per person and $300,000 per accident in bodily injury cover to reduce the risk of getting sued personally.

Liability insurance in Texas

Texas also requires drivers to have liability insurance to pay for the other party or parties’ medical expenses and other costs. 

Currently, the minimum requirements are:

• Bodily injury: $30,000 per person

• Bodily injury: $60,000 per accident

• Property damage: $25,000

The Texas Department of Insurance also advises taking out higher levels of coverage. If you get into a multi-car accident or the car crash results in serious injuries, the coverage above is unlikely to be sufficient. That would expose you to a lawsuit to claim the balance, which could eat into your assets.

How umbrella insurance could help

Some people choose to take out additional insurance, known as an umbrella policy. This provides extra protection beyond the limits of your auto insurance coverage and could prevent you from getting sued personally after a car accident.

For example, imagine you cause an accident that results in $400,000 in compensation to another driver, yet the limit on your policy is $200,000. If you have umbrella insurance, it may make up the balance, protecting you from being sued personally.

However, even if you do not have this insurance, there may be other legal avenues open to you that could reduce the amount of compensation you have to pay.

Scenarios Leading to Lawsuits

As mentioned above, you could be sued because your insurance coverage is insufficient to cover the other party’s losses. 

Other situations can lead to a lawsuit being taken out against you, such as:

• Failing to report the accident: Most auto insurance policies require you to report an accident within a certain timeframe. If you fail to do this, the insurance company may not be willing to defend your case.

• Disputing liability: If it is not possible to settle questions of liability through negotiations with insurance companies, the claimant may file a lawsuit against you. The question of liability would then be settled in court by a jury or judge.

• Disputing over settlements: If it is impossible to agree on an appropriate settlement amount, the claimant may file a lawsuit against you to pursue what they believe is a fair amount of damages.

• Running low on time: If the statute of limitations deadline is fast approaching, the claimant may file a lawsuit to ensure he or she does not miss the opportunity to claim damages. In Texas, the statute of limitations is 2 years after motor accidents, but it is 4 years in Utah.

In all scenarios, you need an experienced car accident lawyer on your side to defend your legal rights and ensure you do not pay more than you are legally obliged to pay.

How a Car Accident Lawyer Can Help

In many cases, the insurance company will appoint a lawyer to defend you. However, if you did not inform the insurance company of the accident or they dispute whether you have insurance with them, you could be left without representation.

During your free consultation, a car accident lawyer will listen to your story and provide initial legal advice. He or she will advise you whether the law firm can take on your case and, if so, how they can defend you.

A car accident attorney’s first priority will be to explore the question of liability by thoroughly investigating what happened. In addition to examining documentary evidence, your lawyer may retain an accident reconstruction specialist to recreate the events that led up to the accident. 

If your attorney can prove that other parties bore a measure of responsibility for causing the accident, it may be possible to reduce the amount of compensation you have to pay. 

Let Fielding Law Defend Your Legal Rights

Getting sued after an auto accident is an extremely stressful situation. Insurance companies could make you feel that you are solely responsible for the accident and have no choice but to pay up using your own assets. In this scenario, you need impartial legal advice from an experienced car accident attorney. 

For legal advice in Texas and Utah, look no further than Fielding Law. Our track record speaks for itself. So far, we have won over 3,700 cases and are ready to apply our knowledge of Texas and Utah law to your car accident case.

At Fielding Law, it’s not about us. It’s about you. Discover your legal rights and how to defend them during your initial consultation with one of our experienced car accident lawyers. Call today at (877) 880-4090 or fill out our contact form, and we can schedule a case evaluation with you soon.