Car accidents that cause significant injury or damage to people or their property often result in lawsuits. This usually means that the insurance company is being sued, not you personally. The other driver may sue your insurance company over the amount of the settlement, or you may need to sue someone else’s (or sometimes your own) insurance company in regards to a settlement.
The good news is that in most cases your auto insurance provider will handle the process for you. Let’s take a look at what can happen and what it means to you.
If You Are Suing Another Driver’s Insurance Company
Remember, the goal of every insurance company is to settle for as little as possible. If you have to sue someone else’s insurance company, your own company will most likely handle this process with their internal company lawyers. This doesn’t mean you can’t hire your own lawyer, but in most cases its not necessary to shell money out for personal representation.
If Another Driver is Suing Your Insurance Company
Similarly, another driver may sue your insurance company if they are not happy with the settlement offered to them. Again, your own car insurance company will handle the process, no need to hire your own lawyer.
If You Have to Sue Your Own Insurance Company
If the other driver involved in your accident does not have insurance, and you have the proper coverage, you may find yourself arguing with your own insurance company for sufficient compensation. And don’t think that just because you are customer you will get a better deal. As stated before, the insurance company’s goal is always to pay as little as possible for claims.
Usually, the insurance companies work things out. Adjusters work together to determine the cost of damage, as well as medical and other costs. The two companies will negotiate the settlement. If they can’t come to an agreement, there may be a lawsuit filed in a court of law, but usually a settlement is able to be reached first.
Even in court, however, the insurance company will still provide representation for you. After all, the insurance company remains interested in settling for as little as possible, and in the end, they are the ones who will be paying the settlement costs.
How to Protect Yourself
The best way to protect yourself and your assets from lawsuits is to make sure you have set the proper limits on your insurance coverage. Make sure you have enough to protect your assets. If you are unsure about your coverage and how much you should be spending, just use the Official Auto Insurance form.
Fill out a few details and you will receive quotes from several carriers. You can then start to compare coverage and quotes to find the best deal that’s right for you. And, be sure to check each company’s reputation, so you’ll be well-represented should you be involved in a car insurance lawsuit.