What to Do If an Insurance Company Is Suing You for a Car Accident

By September 17, 2021Car Accident
Rear End Accident picture

Every year, over 6 million car accidents are reported in the United States, often resulting in severe physical injury, extensive property damage, and sometimes death. Besides these consequences, another common repercussion of collisions is the costly personal injury lawsuits that follow. The other driver or insurance company could sue you and open a whole can of worms. Your best chances in this situation lie with working with experienced Grand Junction Auto Accident Lawyers. Meanwhile, let us look at what you should do if an insurance company sues you for a car accident.

When Can a Car Insurance Company Sue You?

A car insurance company could sue you for a car accident if:

1. You Are Suspected of Insurance Fraud

Your insurer could take legal action against you if they believe you committed insurance fraud. There are generally two types of insurance fraud charges:

  • Hard fraud: When an insured party intentionally causes an accident, fabricates a claim, or damages their vehicle for insurance money.
  • Soft fraud: When an insured party exaggerates the details of a legitimate accident to get additional compensation.

You can avoid an insurance fraud-related case by describing your claim as honestly and accurately as possible. Don’t try to defraud your insurance provider.

2. You Live in a Fault State

Fault states allow plaintiffs to sue an individual directly for car accident compensation. Therefore, if you live in a fault state like Colorado, there is a high chance that an insurance company could sue you if they believe you caused an accident through negligence.

3. Damages Exceed Your Cover

In the event your insurance company is sued, pays out the claim, but the damages exceed your policy limits, the plaintiff’s insurance company could sue you directly. Such a lawsuit, if successful, would require you to cover losses like medical bills and lost income out-of-pocket.

Steps to Take If You Get Sued

So, what happens if you get sued by an insurance company? Can you defend yourself, or should you accept to cover the damages? Generally, there is still hope you could win such a lawsuit if you prepare adequately. Here are the steps you should take:

Step 1: Determine Fault

Immediately after a car accident, determine who was at fault for the collision. You can do this by collecting key pieces of evidence, such as:

  • Medical reports
  • Scene photos and video clips
  • Dashcam footage
  • Eyewitness testimonies
  • Police report

The proof you collect during this time will come in handy in proving that you were not at fault for the crash. If you were to blame, the evidence will still be useful. Your attorney can use it to reduce your liability through the comparative negligence principle.

Step 2: Call Your Insurer

Next, contact your insurer to report the accident. If you get sued, your auto insurance coverage may include attorney fees that will allow you to retain an attorney.

Talk to a Grand Junction Auto Accident Lawyer

Insurance companies don’t normally sue their clients unless the case is fraud-related. Still, the other party’s insurer could file a lawsuit against you, which could lead to expensive proceedings and consequences. Fortunately, the Grand Junction Auto Accident Lawyers at Cimarron Ridge Legal Group have been handling such cases for over 70 years. We can help you navigate the complicated world of personal injury law. Call us at (970) 644-5194 to schedule a consultation today.