Introduction
Car accidents are a common occurrence on the roads, and it can be traumatizing when you are involved in one. Besides the physical and emotional impact, there are also financial implications that arise. The insurance company is supposed to cover the damages incurred, but sometimes, they may sue you for the accident. This article discusses what to do when an insurance company sues you for a car accident.
Reasons Why an Insurance Company Sues You
Insurance companies sue drivers for various reasons. Some of the most common reasons include:
- Disputed liability – The insurance company may sue you if they feel that you were at fault for the accident, but you dispute the liability.
- Uninsured or Underinsured – If you do not have insurance or have insufficient coverage, the insurance company may sue you to recover the damages.
- Policy Exclusions – Your insurance policy may have exclusions that do not cover the accident, and the insurance company may sue you.
- Intentional Acts – If the insurance company believes that the accident was intentional, they may sue you.
What to Do When an Insurance Company Sues You
If an insurance company sues you for a car accident, there are several steps you can take:
- Notify Your Insurance Company – Your insurance company should be notified immediately when you are sued. They will provide you with an attorney to defend you.
- Collect Evidence – You should collect as much evidence as possible to support your defense. This includes witness statements, police reports, and medical records.
- Hire an Attorney – You should hire an attorney to represent you in court. They will ensure that your rights are protected and that you get a fair trial.
- Respond to the Lawsuit – You should respond to the lawsuit within the required time frame. Failure to respond can result in a default judgment against you.
What Happens If You Lose the Lawsuit?
If you lose the lawsuit, the insurance company will be awarded a judgment against you. You will be required to pay damages to the insurance company. If you cannot pay the damages, the insurance company may take legal action to collect the money owed. This can include wage garnishment or seizure of assets.
Conclusion
Being sued by an insurance company for a car accident can be a stressful experience. It is essential to notify your insurance company, collect evidence, hire an attorney, and respond to the lawsuit. If you lose the lawsuit, you will be required to pay damages to the insurance company. It is crucial to have adequate insurance coverage to avoid being sued for a car accident.
