Accidents are unforeseeable and may happen to anybody. An accident is an unpleasant event itself, but do you wonder being sued for car accident what can they take from you? You would immediately consider what kind of damage they may receive.
Don’t worry; the insurance company will cover the majority of your damage fees. If not, there are alternatives.
In this article, we’re going to go over the issue of being sued for a car accident and what the consequences are.
Can You Be Sued for A Car Accident?
Car accidents are under the jurisdiction of personal injury law. So, if you are at fault in a car accident, the victim can sue you personally even for a minor accident. The victim may seek compensation for both physical and financial injury.
The victim may submit a claim and get damage within your insurance coverage. However, if the other party do no agree with the settlement amount or exceeds insurance coverage, the victim may sue you for damages.
The insurance company may deny accountability or be unwilling to negotiate a reasonable deal. You cannot compel the company to agree to a specified sum. Anyway, car insurance does not prevent you from getting sued; it just assists you in paying the damages. In that case, hire an expert personal injury attorney to handle the trials and procedures.
What Happens When Someone Sues You for A Car Accident?
The procedure begins once the plaintiff serves the notice and you respond to it. It is necessary to answer on time and to attend all relevant court sessions. Failure to do so may result in a default judgment being issued against you.
If the outcome is against you, you are liable for the damages. However, in most cases, this is unlikely. Your insurance will cover the majority of it. 49 out of 50 states require car insurance. Under their policies, your insurance company will send you legal counsel and pay the damages on behalf of you.
The lawyer for the insurance company may have a conflict of interest with you. He is working for the firm and always try to lower the company’s expenses. As a result, it is preferable to retain the services of another qualified personal injury lawyer to handle the lawsuit.
Watch this video: What happens if I’m at fault for a car accident and make your concept clear.
Being Sued for A Car Accident with Insurance
The first thing to do after being sued is to determine whether or not the other party has submitted a demand to settle the lawsuit. To avoid a lawsuit, the majority of people negotiate outside of court. The second step is to determine whether or not the demand falls within the scope of your insurance coverage.
Medical bills, the cost of restoring a damaged vehicle, property damage, lost income, and any physical or mental pain and suffering are all examples of damages. the opposing party may claim these as their demand.
Make sure to notify the insurance company as soon as the other party makes a demand. Rather than filing a lawsuit, it is considerably easier and less expensive to settle the dispute outside of court. You won’t have to pay anything out of your pocket because your insurance will cover everything.
But if your insurance coverage is inadequate to cover the entire cost, you may be personally liable for the rest. For example, suppose you had $10,000 in insurance coverage but the compensation is $15,000. Then you’re individually accountable for $5,000.
Being Sued for Car Accident What Can They Take?
The situation of personal liability occurs when the insurance coverage is not of much help. The aggrieved party may seek your assets to recover damages. Savings, personal property, and even salaries are examples of assets. Here the question arises- ‘What can they take?’
You can pay the court judgment if you have the money. The victim may also agree to a payment plan in which you pay a certain amount every month until you pay the debt completely. If not, they will take the money from the sale of your assets like personal property, vehicles, savings, etc.
To settle the dues, your wages may be garnished. Wage garnishment guidelines and restrictions vary by state but commonly range from 10% to 25% of your salary.
Bank Account Seizure:
To satisfy the judgment amount, the plaintiff may seek to confiscate cash from your bank accounts.
To guarantee the debt amount, the judgment creditor may place a legal claim on your assets. The creditor has the right to the profits if you sell the asset.
Driver’s License Suspension:
If you fail to comply with a court order, several states have the right to revoke your driver’s license. You might complete payments before court cancel your license.
But there are some exceptions in terms of your homestead, retirement, and life insurance benefits. If you are drowning in debt, you have the option of declaring bankruptcy. Bankruptcy might bring relief by releasing you from some debts.
Being Sued for A Car Accident but Have No Assets
You need to show ‘judgment proof’ if you have no major assets or financial status to settle a judgment. It denotes a situation in which the defendant has no assets and there is no benefit to suing him.
Being Sued for A Car Accident with No Insurance
Car insurance is mandatory in almost all states. Many jurisdictions have rules and regulations in place to keep cars off the road until they’ve got insurance. This includes fines for driving without insurance, license suspensions, and maybe jail time.
Being Sued for Car Accident What Can They Take: FAQs
When can I sue for a car accident?
You have one year from the date of the accident to file a lawsuit.
How much someone can sue for a car accident?
It varies on the unique circumstances.
Do I need an attorney to sue for a car accident?
Yes. An experienced attorney can help you to defend your case smoothly.
Does car insurance cover if someone sues you?
Yes, it covers it it’s within your insurance coverage.