What Your Car Insurance Policy Will Do for You During a Lawsuit
What your policy can do for you during a lawsuit will depend heavily on what type of coverage and insurance you carry, as well as the terms attached to your auto insurance plan. When you purchase a car insurance policy, make sure that you know what type of lawsuit coverage is included.
Read more
Find the Lowest Car Insurance Rates Today
Quote’s drivers have found rates as low as $42/month in the last few days!
Table of Contents
Insurance Content Team Lead
Tonya Sisler has been a technical insurance writer for over five years. She uses her extensive insurance and finance knowledge to write informative articles that answer readers' top questions. Her mission is to provide readers with timely, accurate information that allows them to determine their insurance needs and choose the best coverage. Tonya currently leads a team of 10 insurance copywri...
Tonya Sisler
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed life and health insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chr...
Chris Abrams
Updated January 2025
If you have ever been in a serious accident, the aftermath can be just as bad as the accident itself, especially if you are named in an auto insurance lawsuit. If you are sued, the process will be stressful, but your auto insurance can work on your behalf.
Car Accident Lawsuit Coverage Under Your Auto Insurance Policy
Most car insurance companies will hire and pay for an attorney to represent you in an auto insurance lawsuit, as well as other approved expenses in connection with the lawsuit. This type of coverage, if not automatically included, can be purchased with your car insurance policy. Car insurance lawsuit coverage will help you through the process of being sued after a car accident, but you must be ready to work with your appointed attorney.
Make copies of any legal documents you receive and forward them by certified mail to the contact person your insurance company designates as your attorney. Make sure you include your car insurance policy number as well as the best contact information and phone number you may be reached at.
TIP: If you are served with a subpoena, complaint, or court papers of any kind in conjunction with an auto accident, contact your insurance company immediately! In most court papers, there is a specified time to reply, and missing a deadline can hurt your lawsuit defense!
The car accident lawyer provided by your insurance policy represents you and therefore, cooperation with the car insurance lawyer is in your best interest. He or she will provide legal representation before and during any car accident trial that should occur. As long as you work with this lawyer, you should rely on them to handle any matter surrounding the car accident. Do not attempt to do anything to resolve the case on your own!
If legal representation from the other party in the car accident lawsuit should contact you, say nothing and refer them to your insurance company or provided auto insurance lawsuit lawyer. Even before you receive any legal papers be careful of making any statements to the other party or his/her attorney. Talk with your insurance company first. All correspondence and requests you receive from anyone should be forwarded and answered only by your legal representation.
TIP: If you feel uncomfortable with the car accident attorney provided by your car insurance company, you may consult one independently. However, your car insurance company will not pay for an attorney you choose, so you must be sure that a different car accident attorney is necessary.
Your Auto Insurance Lawsuit Liability
The limits of liability stated in your auto insurance policy is the maximum amount of coverage or money your car insurance company will provide in the event you are found liable for any damages resulting from a car accident.
KEEP IN MIND: It is possible for a court to hold you liable for damages above and beyond your car insurance policy limits. You may be responsible for paying money over your liability coverage.
If you feel your liability in a car accident may exceed your car insurance limits of liability coverage, talk to your insurance company appointed attorney and your insurance company adjuster immediately! They will advise you how to best proceed in this situation and what your potential liability may be. If you still have questions, you might want to seek independent guidance from another attorney, but remember it will be at your own expense.
A car insurance lawsuit can be very expensive, time consuming, and stressful. Contacting your car insurance company as soon as you have been notified that a car accident lawsuit has been filed against you is the best way to ensure you obtain legal representation in a timely manner and lessen any financial loss you may incur. Auto insurance lawsuit coverage varies from policy to policy so it is very important to obtain advice on how to proceed.
When you purchase a car insurance policy, make sure you know what type of lawsuit coverage is included. Click here to start shopping for car insurance policies at the Free Advice quote center.
Read More Articles That Explain Your Car Insurance Policy
Get free insurance quotes or connect with legal experts in minutes
Insurance rates change constantly — we help you stay ahead by making it easy to compare top options and save.
