If the at fault insurance company doesn’t deny liability but instead just avoids the injured party to avoid payment, can that party sue the insurance company in small claims court?
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If the at fault insurance company doesn’t deny liability but instead just avoids the injured party to avoid payment, can that party sue the insurance company in small claims court?
Asked on June 30, 2015 under Accident Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
No, the injured party cannot sue the insurer: the insurer did not cause the accident, and the insurer has no legal or contractual duty to the injured party--its duty is to defend and/or indemnify (pay for) their insured when necessary. The injured party would sue the at-fault driver him/herself for the injured party's injuries and/or property damage. If the injured party wins, he/she will get a judgment for monetary damages (compensation) which will have to be paid by the at-fault driver; if the at-fault driver has applicable insurance, the insurer would pay then (and will likely have paid for the at-fault driver's legal defense, too). Suing the at-fault driver may very well bring the insurer in to try to settle the case, to avoid the cost of a lawsuit.
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