Protecting Your Rights: What to Do If You're Sued for a Car Accident
Navigating the potential legal consequences of a car accident
By Andra DelMonico, J.D. | Reviewed by Canaan Suitt, J.D. | Last updated on May 31, 2024 Featuring practical insights from contributing attorney Andres E. AlmanzánUse these links to jump to different sections:
- When Can I Be Sued for a Car Accident?
- How Long Can Someone Sue Me After a Car Accident?
- What Is the Process of a Car Accident Lawsuit?
- What Are the Potential Outcomes of Getting Sued for a Car Accident?
- Will My Car Insurance Provider Cover Damages if I’m Found Liable?
- How Do I Protect My Personal Assets During the Legal Process?
- Should I Get a Car Accident Lawyer?
- Hire a Car Accident Attorney
Nothing is worse than the sinking feeling after realizing you caused a car crash. Not only do you have your injuries and damage to deal with, but there is somebody else looking to get compensation for their injuries and damage. You may get a letter in the email stating that you are getting sued.
Thankfully, you have insurance that should help you in this situation. However, you shouldn’t hand over the legal documents and forget about it. Knowing your legal rights will help you understand your legal options after a car accident.
When Can I Be Sued for a Car Accident?
When car accident victims file personal injury lawsuits, their insurance company steps in. Instead of suing you directly, they deal with the insurance company.
The insurance company has lawyers who gather evidence and negotiate a settlement. If settlement negotiations fail, the lawsuit goes to trial. At trial, the evidence is presented, and a ruling will determine fault and any potential award amount. The insurance company will make payment on your behalf. If the award amount exceeds your insurance policy limits, you will be personally liable for the remaining amount.
It is customary for all involved parties to be named in a car accident lawsuit. So, even if you are potentially not at fault, you could still be named. Your lawyer will advocate on your behalf to argue your lack of negligence and fault.
Criminal Charges
Depending on the circumstances of the car accident, you may also face criminal liability. This is separate from any civil lawsuits you may face. A state prosecutor will pursue criminal charges on behalf of the victims. The victims themselves are named in the case but do not pursue compensation or recovery through this legal avenue. Instead, criminal consequences are a punishment for breaking the law. You may face misdemeanor or felony charges. Punishment can include fines, jail time, imprisonment, community service, or court-ordered treatment for alcohol or drug abuse.
Andres E. Almanzán, who practices personal injury defense in El Paso, Texas, explains what happens if you face both civil and criminal consequences. “The civil lawyer, through the insurance company, needs to coordinate the defense with the client’s criminal defense lawyer. When facing a civil lawsuit and criminal charges, it’s the criminal charges that have more to lose, if you will.”
How Long Can Someone Sue Me After a Car Accident?
Each state has a statute of limitations that defines how long someone has to file a personal injury claim after experiencing an accident. The deadline prevents individuals from being endlessly liable for potential lawsuits. It also ensures that the injury or loss experienced can be directly connected to the accident. The more time that passes, the harder this becomes.
The statute of limitations can be between two and six years, depending on the state you are in. It can also be different for property damage and personal injury claims. Generally, this timeline begins at the time of the accident. However, some states start the timeline countdown when the injury was or should have been discovered.
With a time limit to file your lawsuit in place, it is important to not wait. It will take time to gather evidence and build your personal injury case. Waiting will reduce this time and make it more challenging to create an effective claim.
Statute of Limitations Exceptions
There are a few exceptions to the statute of limitations. If the government is the liable entity, the statute of limitations is typically much shorter. If the accident involves a DUI/DWI, there could be applicable Dram Shop laws. These laws pertain to an establishment selling alcohol to the intoxicated driver.
You may also be able to toll, or put on pause, the statute of limitations. This is typically done between the parties. For example, the accident victim and the insurance company are in settlement negotiations, and it looks promising that they will come to an agreement. The parties will agree to toll the statute of limitations to encourage continued negotiations while protecting the victim’s right to recovery through a lawsuit.
Another exception to the standard statute of limitations is a wrongful death lawsuit. This applies when the accident victim dies as a result of the injuries suffered due to the accident. The victim’s family will file the lawsuit on their behalf. Generally, the statute of limitations in this situation begins its countdown when the person dies.
Almanzán explains that there is a statute of limitations exception in Texas for minors injured in a car accident. “If the plaintiff is a minor, the statute of limitations doesn’t start until the plaintiff reaches the age of 18. Then, once the plaintiff reaches the age of 18, they have two years from the date of 18 to file the suit. So if the plaintiff is just 15 years old, it’s five years that you have to worry about.”
What Is the Process of a Car Accident Lawsuit?
The first step in the car accident lawsuit process is for the injured victim to file a car accident claim with the insurance company. The exact procedure can vary, depending on whether the state is a no-fault or fault state. The victim’s personal injury lawyer and the insurance company will gather evidence about the scene of the accident. They will enter settlement negotiations. If the involved parties fail to agree on a settlement amount, the victim’s attorney will file a personal injury lawsuit with the clerk of the court where the accident took place.
The first phase of the legal process is evidence gathering. All parties named in the lawsuit will gather their evidence and can petition discovery. This will include evidence to prove the events, fault, injury cause, and extent of injuries. This can consist of a wide variety of evidence types:
- Police reports
- Property damage
- Lost wages
- Medical expenses
- Pictures and video
- Expert witness
- Accident recreation
Depending on the jurisdiction’s rules of procedure, a hearing, mediation, or alternative dispute resolution phase may be required. If the parties fail to come to an agreement, the case continues to trial. At trial, the attorneys present evidence-based arguments, and the judge rules in favor of one party. This typically includes an assignment of fault percentage and an award amount.
If you do not like the outcome of your case, there is an appeals process. Your attorney will file an appeal with the court based on a legal argument. You may or may not be successful in your appeal.
What Are the Potential Outcomes of Getting Sued for a Car Accident?
The majority of insurance claims are settled before going to court, and even many lawsuits that are filed are settled before going to trial. For lawsuits that go to trial, you can win or lose. As the person getting sued, winning means you are not at fault for the accident. The plaintiff will recover nothing from the lawsuit. Some states also require the plaintiff to pay the defendant’s attorney fees and costs.
If you lose, your insurance company will pay the court-ordered damages amount. You must pay the overage amount if this amount is over your policy coverage. However, there is an extra step before you are required to pay. The court will determine the total value of damages. Then, the court will determine a fault percentage. In contributory negligence states, the plaintiff is barred from recovery if they are 1 percent or more at fault in the accident. In comparative negligence states, the plaintiff’s recovery is scaled back by the percentage they are found at fault. res
Will My Car Insurance Provider Cover Damages if I’m Found Liable?
Yes, the purpose of having auto insurance is that it will pay for the damages if you are found to be the at-fault driver in a vehicle accident. However, your insurance company will only pay for the damages up to the amount of coverage in your policy. Any amount of damages over this amount you will be personally liable for.
As part of your insurance policy agreement, your insurance company has a duty to defend. This means that when someone sues you, the insurance company has a duty to provide you with defense support, including legal representation. However, an attorney hired by the insurance company ultimately works for the insurance company, not you. Hiring your own personal injury defense attorney can be smart to ensure your best interests are looked out for beyond the policy limits.
How Do I Protect My Personal Assets During the Legal Process?
The easiest way to protect your personal assets in a lawsuit is to have enough insurance coverage. When you have enough coverage, you don’t have to worry about being personally liable for damages beyond your insurance policy coverage. Almanzán explains that individuals are afforded legal protections that automatically shield some assets from risk when found liable in a personal injury lawsuit. “Laws are in place that will protect certain assets that you have. So, there are certain assets that you have that are subject to a judgment and can be collected from. There are other assets that are not subject to collection, and you can’t take a satisfied judgment from them.”
Automatically Protected Assets
Each state has laws that automatically protect certain assets from civil litigation. Retirement savings accounts are a commonly protected asset. Thus, you don’t have to worry about your retirement savings being liquidated. Other commonly protected assets include life insurance, federal or state benefits, and annuities. However, protectable assets vary from state to state, so speaking with a personal injury attorney is crucial for protecting your assets in an auto accident lawsuit.
Homestead Exemption
Check for a homestead exemption. Some states protect your primary residence in a civil lawsuit. However, you must meet certain requirements to qualify.
- Florida
- Iowa
- Kansas
- Oklahoma
- South Dakota
- Texas
Almanzán explains how Texas law protects individuals when defending themselves in a lawsuit. “In Texas, there’s a homestead exemption that if there’s a civil judgment assessed against you, they cannot take your home away from you. No matter how much the home is worth.” Other states, such as Pennsylvania and New Jersey, do not provide any protection for your primary residence.
Umbrella Policy
An umbrella insurance policy is an extra layer of insurance coverage that protects you from liability. It kicks in after your car insurance coverage, reducing your personal liability for damages beyond your auto insurance coverage.
Legal Protection Tools
Another option for protecting your personal assets is to legally not own them. This strategy must be in place before you are sued. You could put your assets into a trust or limited liability company (LLC). Speaking with a lawyer to help create the entities and ensure proper ownership is also smart. That way, you have legally formed and effective protection. The laws for these entities also tend to change, so you will want to review your ownership structures regularly to ensure they remain legally enforceable.
Should I Get a Car Accident Lawyer?
While you are not required to hire an attorney, you may consider hiring a personal injury defense lawyer. This lawyer has a duty to protect your best interests and can provide valuable legal advice and oversight for working with the insurance company-hired attorney. Hiring a lawyer is a proactive choice to protect your rights and assets in a car accident lawsuit.
Hire a Car Accident Attorney
If you find yourself getting sued after experiencing an accident, the first thing you should do is alert your insurance company. One of the reasons you have insurance is for protection when you get into an accident. However, if you are at least partially responsible, you should also consider speaking with an attorney who practices personal injury law. They will perform a case review covering the accident’s facts and the evidence available. Their free case evaluation will help you understand your legal rights and the car accident case process.
Visit the Super Lawyers directory to find a personal injury defense lawyer to represent you in a car accident lawsuit.
What do I do next?
Enter your location below to get connected with a qualified attorney today.Additional Motor Vehicle Accidents articles
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