If you caused a collision and carry auto coverage, you may be wondering — can someone sue you for a car accident if you have insurance? The short answer is yes. Having car insurance does not prevent another person from filing a lawsuit against you.
In most situations, your insurance company handles the claim and pays the injured party without a lawsuit ever being filed. That's why you pay for auto insurance: because you don't want to be on the hook for damages resulting from a car crash.
However, there are situations where people are more likely to be sued, even if they have insurance. There are situations where a person may have a claim brought against them, and they may nevertheless have a viable injury claim themselves. For example, in a multi-car pileup case, one driver may bring a claim and have a claim brought against them.
How Insurance Typically Handles a Car Accident Case
When you carry liability insurance, your policy exists to cover damages you cause to others in a car accident case. After a crash, the injured party will typically file a claim with your insurance company. The insurer investigates the accident claim, evaluates the damages, and negotiates a settlement.
In most cases, your insurance company accepts responsibility for the accident on your behalf, pays the settlement, and the injured person signs a release. The case ends there, and your personal assets are never at risk. This is the standard process for the vast majority of accidents.
However, there are specific circumstances where this process breaks down — and the other driver may have grounds to pursue you personally.
When Someone Can Sue You Even With Insurance
Even though you have coverage, there are two primary situations where someone can file a lawsuit against you and potentially go after your personal assets.
Your Insurance Company Refuses to Settle
Insurance companies have a duty to handle claims in good faith. When an insurer unreasonably refuses to pay a valid claim, the consequences can fall on you.
For example, suppose you carry $100,000 in bodily injury coverage and the other driver suffers $100,000 in medical bills and other damages. Your insurer refuses to settle within your policy limits. The case then goes to trial, and the jury awards $150,000. You are now personally responsible for the $50,000 that exceeds your coverage, even though your insurer could have resolved the case before trial.
This situation is known as insurance bad faith. In many states, including Florida, the at-fault driver can assign their right to sue the insurance company for bad faith, which may relieve the driver of personal liability for the excess amount.
The process is stressful and can take considerable time to resolve. Nevertheless, the insurance companies do this to their insureds far more than they should.
Your Coverage Is Not Enough to Cover All the Damages
The second common scenario where someone might sue another person who has insurance coverage is if the coverage is insufficient. In other words, if your policy limits are lower than the total damages the other person sustained, you could be personally liable for the difference.
For example, if you carry $25,000 in coverage but the other driver's damages — including medical bills, lost wages, and lost income from missing work — total $100,000, your policy only covers $25,000. The remaining $75,000 could be pursued through a lawsuit against the at-fault driver.
In practice, this rarely leads to collection of personal assets. It often costs more to pursue someone's personal property than the plaintiff would recover, so many personal injury lawyers advise their clients against it unless the at-fault driver has significant assets.
Florida Car Accident Claims and the No-Fault System
Florida operates under a no-fault insurance system, which means that after a Florida car accident, each driver's own personal injury protection (PIP) coverage pays for their initial medical expenses, regardless of who caused the crash. PIP benefits cover up to $10,000 in medical costs and related expenses.
However, if injuries exceed $10,000 in medical costs or meet a certain severity threshold, such as permanent injury, significant scarring, or loss of a bodily function, the injured person can step outside the no-fault system and file a lawsuit against the at-fault driver. When damages exceed PIP limits, having adequate bodily injury liability coverage becomes especially important.
How a Personal Injury Attorney Can Help
If you've been injured in a car crash, and you believe the other driver or drivers caused the crash, you may be entitled to compensation to help pay for things like:
- Medical bills
- Lost wages
- Rehabilitative care
- Pain and suffering
People often sue each other after a car crash, especially in Florida. Whether you are the one being sued for a car accident or you are the injured person considering legal action, speaking with a personal injury attorney is an important step. Experienced personal injury lawyers can evaluate the details of your situation, explain your rights, and guide you through the claims process.
Contact a Car Accident Lawyer at Our Firm
If you have been involved in an accident and need help bringing a personal injury claim, contact an Orlando car accident attorney at our law firm. We offer free consultations for accident victims with potential personal injury claims. You can call us anytime at (321) LAWSUIT, and we can talk about your legal rights and options.
When you work with us, you don't pay anything unless we get money for you. We work on a contingency fee basis, with no retainers or upfront costs.
Frequently Asked Questions
What happens if damages exceed my insurance policy limits?
If the total damages are greater than your policy limits, you could be personally liable for the difference. The injured party may be able to pursue your personal assets through a court judgment.
Should I get more than the minimum liability insurance?
In most cases, you should seriously consider purchasing more liability coverage. Florida does not require driver's to purchase bodily injury liability coverage. In states where bodily injury coverage is required, minimum coverage may not be enough to protect you if you are sued for a car accident with serious injuries. Higher coverage limits reduce the risk that your personal assets will be exposed.
Can I be sued if I was not at fault?
Generally, no. If you did not bear responsibility for the accident, the other driver would not have a valid basis to bring a claim against you. However, disputes over fault do arise, and we often need to perform an investigation to prove fault or lack of fault.
Does Florida Require Drivers to Carry Bodily Injury Liability Insurance?
No. Florida requires drivers to carry personal injury protection and property damage liability coverage. However, drivers are not required to carry bodily injury liability coverage. Nearby states, like Georgia and South Carolina, require drivers to carry a minimum of $25,000 in bodily injury coverage.