Suing Another Driver’s Insurance Company for Refusing to Cover Accident Damages
After a car accident, it's crucial to understand the steps and potential avenues for seeking compensation for damages. Particularly, if the at-fault driver's insurance company refuses to cover the losses, you may wonder if legal action can be taken against them. In this article, we'll explore the legality of suing another driver's insurance company, the necessary steps, and the importance of insurance coverage.
Understanding the Legal Landscape
When an accident occurs and the at-fault driver is insured, their insurance company is responsible for covering the damages. This is typically handled by filing a claim with the at-fault driver's insurance carrier. If your insurance company is not willing to pay your claim, it may be due to the fact that they are not liable for the accident; the at-fault driver is responsible for the damages.
Do You Need the At-Fault Driver’s Insurance to Cover Your Damages?
There are circumstances where you might consider taking legal action against another driver's insurance company. For instance, if the at-fault driver is uninsured or underinsured, or if their insurance company is denying your claim for some valid reason, you can file a claim based on uninsured motorists coverage. However, taking legal action directly against the insurance company is not straightforward.
Key Points to Consider:
Ensure the at-fault driver has proper insurance coverage. Check your own policy for uninsured or underinsured motorist coverage. File the insurance claim with the at-fault driver’s insurance carrier. Seek legal assistance if the insurance company is not cooperative.Legal Action and Standing
Directly suing an insurance company is not as simple as you might think. If you declined uninsured or underinsured coverage when your policy was written and the at-fault driver was not covered, your insurance company may not be obligated to compensate you. Similarly, if there is any dispute over liability, or if the at-fault driver’s insurance policy is invalid or lapsed at the time of the accident, you would need to sue the driver instead. In such cases, the insurance company would be responsible for paying any judgment.
When to Sue the Driver:
When the other driver is uninsured or underinsured. When there is a clear liability issue and the insurance company is rejecting your claim. When the at-fault driver's insurance policy is invalid or lapsed at the time of the accident.Steps to Take When Taking Legal Action
If you decide to take legal action, here are the steps you can follow:
Document the Incident: Collect all relevant evidence, such as police reports, photos, and witness statements. Review Your Insurance Policy: Understand your coverage options and the terms of your policy. Consult with a Lawyer: Seek legal advice to understand your rights and the best course of action. File a Lawsuit: If necessary, file a lawsuit against the at-fault driver. Prepare for Contingency Fees: Most personal injury attorneys will take cases on contingency, meaning they take a percentage of your settlement if you win, but you pay nothing if they lose.Alternative Dispute Resolution: Small Claims Court
For simple damage claims where the cost to repair your vehicle does not exceed the jurisdictional limit of small claims court (typically $10,000), you can sue the driver without a lawyer. Small claims court can be a quicker and more straightforward way to resolve disputes. However, if the costs exceed this limit, you will need to use your collision insurance and let your carrier collect the money from the at-fault driver or his insurance company. Keep in mind that you may still be responsible for your deductible and may not have rental car coverage.
Conclusion
While it is possible to take legal action against another driver's insurance company under certain circumstances, it is important to understand the complexities involved. Ensuring you have adequate insurance coverage, documenting the accident thoroughly, and seeking legal advice are essential steps in navigating this process.