What to Do if Someone Sues You for a Car Accident
Your insurer takes over the defense in most cases, but you have to notify them right away and follow what the policy requires of you.
Call your insurer before you do anything else
The first step is to tell your own insurance company that you've been sued. Not the other driver's insurer, not a lawyer you found online first. Your policy almost certainly requires prompt notice of any claim or lawsuit, and if you wait too long or try to handle it yourself, your insurer can deny coverage for the whole thing.
Once you report it, your insurer typically assigns a defense lawyer and takes over responding to the suit, as long as the claim falls within what your policy covers. That's the point of carrying liability coverage. You still need to stay involved, answer your lawyer's questions honestly, and keep any paperwork you were served with, but you are not supposed to be handling this alone.
Whether the claim is within your policy limits
If the amount being claimed is within what your liability coverage pays out, your insurer has a strong incentive to defend you well and settle if that makes sense. Your own money generally isn't at risk in that scenario.
If the claim could exceed your policy limits, your situation changes. You could be personally responsible for whatever a judgment awards beyond what your insurer pays. This is when people sometimes hire their own attorney in addition to the one the insurer assigned, specifically to protect their personal assets.
Ask your insurer directly what your limits are and whether the amount being claimed is close to or above them. Don't guess. If you don't know your limits, they're on your declarations page.
This is also a moment to think about whether an umbrella policy, if you have one, applies. Not everyone does, and whether it kicks in depends on the terms of that specific policy.
Whether you were actually at fault, and what the paperwork says
Being sued doesn't mean you're automatically found liable. The lawsuit has to be answered, and whether you were at fault is something that gets argued and decided, often settled before it ever reaches a verdict.
Read what you were served carefully. There's usually a deadline to respond, and missing it can result in a default judgment against you even if you had a good defense. This is another reason to notify your insurer immediately rather than setting the papers aside.
Keep your own copy of the accident report, any photos, and anything you remember about what happened, and give it to whoever is defending you. Don't discuss the accident or the lawsuit with the other driver, their insurer, or on social media. Anything you say can be used against you later, and it's easy to say something that sounds worse than you meant.
If your insurer tells you the claim isn't covered, ask them to explain exactly why in writing. Coverage denials happen for specific reasons tied to your policy, and you're entitled to understand the reason given.
Questions people ask about this
Do I need my own lawyer if my insurance company already assigned one?
Not usually, if the claim is within your policy limits and there's no conflict between your interests and your insurer's. The assigned attorney's job is to defend you. You might want your own lawyer if the claim could exceed your coverage, if your insurer is disputing whether they'll cover the claim at all, or if you just want a second opinion on something significant.
Will my insurance drop me if I get sued for an accident?
Being sued by itself isn't usually a reason an insurer cancels your policy, since the accident giving rise to the suit is what they're underwriting around in the first place. What can affect your coverage going forward is how the claim is resolved and whether you were found at fault. Ask your insurer how this specific claim might affect your renewal.
What happens if I ignore the lawsuit papers?
Ignoring them is one of the worst things you can do. Courts can enter a default judgment against you if you don't respond by the deadline, meaning you lose automatically without your side being heard. Notify your insurer the same day you're served, if possible, so the clock doesn't run out while you're deciding what to do.
Can the other driver sue me directly instead of going through insurance?
Yes, a lawsuit is a legal action against you personally, even though your insurer typically steps in to defend you and pay out of your coverage. That's exactly why prompt notice to your insurer matters so much. Without it, you could end up facing the suit without the defense and payout your policy is meant to provide.
Does an at-fault accident lawsuit affect my ability to get insurance later?
It can factor into how insurers view your application, since insurers look at accident and claims history when deciding what to charge. How much weight any one insurer gives to a past lawsuit or claim varies by company and by state rules, so this is worth asking about directly when you shop for a new policy.
See what it might cost to switch insurers once this claim is behind you.
Call your insurer today, not after you've had time to think it over, and tell them you've been served with a lawsuit related to the accident. Have the court papers in hand when you call so you can read them exact dates and claim details. Ask them directly what your policy limits are, whether this claim is covered, and who will be assigned to defend you. Write down the names and the claim number you're given. Keep every piece of paper related to the accident and the lawsuit together in one place, and resist the urge to discuss the accident with anyone involved until your insurer or attorney tells you how to handle it.
