Can Someone Sue You for a Car Accident if You Have Insurance?

Posted on Aug 24, 2017

Can Someone Sue You for a Car Accident if You Have Insurance?

If it turns out you were at fault for a car accident in New Jersey or surrounding areas, you may wonder how much money it will cost you. Along with the hassle, it could cost you a lot of money if you don’t have proper insurance.

Even if it’s just a minor accident where there were only traces of your car’s paint on the other vehicle, it can still put your nerves on edge. Usually, knowing who’s at fault isn’t hard to figure out, but when you’re in the middle of the accident scene, it might not be the first thing that comes to mind.  Checking to see if everyone is ok usually is.

Does Car Insurance Protect You From Being Sued?

Unfortunately, even if you have a car insurance policy, you still encounter the possibility of being sued for damages that are beyond your auto insurance coverage level, and you are found to be at fault.

Fortunately, when you purchase an auto insurance policy that corresponds to your financial situation, lifestyle, and unique needs, you reduce the financial repercussions of being sued. In New Jersey, automobile liability insurance is mandatory. What you get in exchange for having liability coverage is the payment by the insurance company of any settlement or judgment against you up to the limit you purchased as well as a lawyer to represent you in car insurance lawsuit and coverage for approved expenses relating to the lawsuit.

In most cases, the insurance policy of the person at fault is enough to cover injuries and penalties involved. In cases where this isn’t true, your personal assets can be taken to satisfy the judgment won by the other party.

If you are sued, you should immediately notify your insurance company and provide it with the suit papers so it can hire counsel to defend you. A delay in reporting the suit might jeopardize coverage, so either call your insurance agent or the insurance company directly right away.

What to Do at the Scene of a Car Accident

There are several things you should do at the scene of the accident, but the thing you absolutely shouldn’t do is admit you’re at fault for the accident. You shouldn’t even say things that could be interpreted as the admission of fault such as “I’m sorry” or “I didn’t see you.”

You should call the police to the scene so that an accurate record of what happened, including the identity of any witnesses will be created. Cooperate with police who come to the scene. Just don’t admit fault with anyone. You’ll have time to determine responsibility later after all the facts have been established.

Be sure you make copies of all legal documents you receive and forward them to your insurance company’s contact person. Make sure to include your auto insurance policy number, phone number, and contact information.

Call us here at Otterstedt Insurance Agency at 201-227-1800 to ensure you have adequate auto insurance coverage to protect you in the event of a car accident lawsuit.

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