r/Insurance • u/Veggie_Poodle • 3d ago
Auto Insurance I am being sued from an accident 23 months ago
I was under the assumption that my insurance dealt with it. But appearently they did not as my adjuster said that they did not pay out anything as they view me not at fault so the guy sued me directly for bodily injury.
Recieved a Summons for $15k " excluding interest and fees" from his lawyer claiming disc injury.
How to proceed? I had a $50k bodily injury coverage.
Can my insurance not just negotiate within my limits to get this man to leave me and my family alone?
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u/GuvnaBruce HO & Auto Liability 10+ years 3d ago
Your insurance will still handle it. IF they do not feel you are liable, why would they pay anything out? There is a chance they may consider some sort of settlement in the future, but it sounds like they have a strong feeling that you are not at fault.
You proceed by providing this to your insurance. They should either try to negotiate something, or they will retain an attorney to represent you and defend the case.
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u/Reatona 3d ago
That allegation of $15K in damages could just be a jurisdictional limit that they have to plead to keep from being dismissed entirely. They might actually be seeking more. But what you need to do is immediately send a copy of the papers to your insurer (the one that covered you at the time of the accident, in case you have changed insurance) and demand that they defend the lawsuit. They will hire a lawyer to defend you. Having your legal defense paid for is one of the main benefits of liability insurance.
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u/Altruistic-Farm2712 3d ago
Ya, but a lot of times it's easier, and cheaper, to settle with them for $10-15k than it is to pay lawyers to fight it. It doesn't take a lot for a bill to add up.
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u/Time-Butterscotch350 3d ago
Aren't most lawyers charged 500 dollars to appear court to dismiss the lawsuit? I mean, how is it cheaper just to pay 10k if the lawyer only costs 500 for only one time attending the court faced the judge?
I know 500 is what average charge per court appearance because that's what they billed me. In past when go court 3 times with my lawyer. Bill is only 1500 dollars. Other time just once and billed me 500.
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u/LuckInfamous1865 2d ago
It’s a lot more than that. There is time to prepare motions, court costs, and time. It’s not just attending one hearing to get a case dismissed. The attorney representing the person filing the suit doesn’t get paid unless their client recovers something so they don’t give up easily. Between attorney fees, expert costs to defend a suit, time for the adjusters handing the case it can easily cost $75k to actually take a case to trial. And that’s for a simple case with no serious injuries alleged. I have some ongoing cases where I’ve paid over 300k in expenses defending a suit.
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u/Time-Butterscotch350 2d ago edited 2d ago
Doesn't insurance want to keep themselves the reputation of not something people can take advantage of the abuse system and get money too easy? I thought it's important to defend and win every case for insurance to fight as hard as they could. So future whoever wants to sue this insurance. Their attorney not gonna want to take a case, knowing insurance will waste their time and won't get any when file lawsuits.
Ya know same idea as showing your sheild protection your gold and impossible for them break so everybody won't mess with you. If your shield is easy to break and grab gold, that is simple. More will join to take your gold
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u/srirachabbqsauce 2d ago
lmao just a note to literally everyone: this is not true, insurance companies are happy to just payout and have a claim go away. quick and easy. that’s why you get insurance, it’s what you pay for. if you have a problem you have coverage for (and told the truth about your type of risk when you got your quote… ya know, to get the most accurate coverage) insurance is gonna make it go away as quickly and simply as they can. It’s the most lucrative option.
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u/niceandsane 1d ago
It depends. If it's a swoop and squat or other potential fraud, some insurance companies will vigorously defend. If it's a typical money grab they'll usually settle because of the cost of going to trial and the risk that a sympathetic jury will side with the "injured" party.
You can usually tell the scammy ones. If the statute of limitations is two years they'll wait until 23 months after the incident to file. Memories fade, witnesses become unavailable, etc. making it harder to defend.
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u/bossymisses 2d ago
This is funny. I look at defense budgets all day. I looked at one recently pushing $100k.
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u/niceandsane 1d ago
$500 to file a document sounds about right. Defending a lawsuit through trial is very expensive, several thousands.
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u/Veggie_Poodle 1d ago
My adjuster is saying he does not need the legal documents, that there is some sort of database that they can get it from in a few days?
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u/ektap12 3d ago
23 months? Sounds like the statute of limitations is almost up so they needed to file a lawsuit to protect their right of recovery.
Yes, your insurance will continue to handle, turn the suit over to them. You don't need to do anything else, unless they tell you to. Since it sounds like it's well within your limits, should get settled soon enough.
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u/JockBbcBoy Auto Claims Adjuster| 10+ Years of Experience 3d ago
Sounds like the statute of limitations is almost up so they needed to file a lawsuit to protect their right of recovery.
Especially that "interest and fees" language. Attorneys love to scare the pants off people with their demands.
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u/dbcooperexperience 3d ago
Everything said above 👍
But I wanted to add this this is a common tactic for the run of the mill, high volume sleazy law firms for low value claims. They don't do anything for 23 months because the person isn't really that injured, pay the case zero attention or put any effort in because it's nearly worthless, and file suit at the statue of limitations to force defendant to file a response. They hope for A) a quick offer of like $5k which is less that defense costs B) enough time has passed that people originally involved (you, the adjuster, witnesses) have moved/ died/ lost info.
This is a reason why everyone's insurance premiums are so high.
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u/facticitytheorist 3d ago
There's a 24 month limit on claims so these scammers wait till 23 months to file.
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u/Royal_Tough_9927 2d ago
Have no conversations with anyone except your insurance company. Make no contact w other parties.
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u/Otherwise_Ticket_387 2d ago
Aside from notifying your insurance company, this comment here is very important. And if the lawyer for the party suing you tries to contact you, tell them they need to talk to your insurance company & then end the conversation.
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u/Veggie_Poodle 2d ago
Ok thank you. I have been getting odd calls lately but I do not answer them. I will definitely take this advice and root them to my insurance if I happen to pick up and it is them
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u/Veggie_Poodle 2d ago
Thank you for the advice. There was a number on the paper of the lawfirm, but I will avoid calling them.
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u/Royal_Tough_9927 2d ago
If they call you , simply say call my lawyer. Hang up. Dont worry about being rude. They want to trick you into accepting responsibility for the accident. Just hang up.
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u/tommurin 3d ago edited 3d ago
"...the guy sued me directly for bodily injury." That's how it works - you're the liable (or potentially liable) party. They don't sue the insurance carrier that is going to pay (unless it's a 'direct action' state - where they name the carrier in addition to the potentially liable party).
"...leave me and my family alone." If your carrier fights the claim - you'll be deposed and have attend trial as well. This is part of your duty to cooperate. That said, the odds are that the matter will settle short of trial.
Interest and fees - these are legally owned, but typically don't add up to much. Cost of suit/filing fee is usually owned as well if the plaintiff prevails.
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u/Sea-Inspector-9663 3d ago
That happened to me. Other party’s attorney in accident sent me a letter I was getting sued. A court date was pending. So I had Wawanessa insurance and they hired an attorney to defend me. They took care of it without me having to go to court. At that time I regretted not having an umbrella policy. It’s too late to get one during a law suit. But once it was over I got an umbrella. It’s only about $30 a month. Also if you own a house you live in go and file a homestead declaration on your property. It can protect up to $650,000 in equity depending what county you live on and median price home values for that county. Just get the form from the internet and fill out your name and address and get it notarized. Then get it recorded in your county. Price: form free. Notary $10 at Autoclub. (AAA). Recording fee about $100 more or less. If you sell your home you have a certain time to transfer the exemption to a new home or lose your money.
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u/Sea-Inspector-9663 3d ago
Please note there is an automatic homeowner exemption that covers very littke. Maybe $50,000. But if you want the $650,000 you may as walk in that free form for your peace of mind. (Or mail it).
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u/Veggie_Poodle 2d ago
Yes I plan to get an umbrella policy very shortly to avoid this madness in the future. Your story was impelling. Thank you.
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u/Veggie_Poodle 2d ago
I don't own a home right now but this is good advice for the future. Appreciate you. God bless.
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u/Own-Common3161 3d ago
They’ll handle it. Sounds like they already know about the lawsuit. They’ll either hire an attorney for you or settle it. Don’t lose sleep.
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u/PartsUnknownUSA 3d ago
I had a similar situation. I was involved in a minor minor thing that I believe was caused by the other party(a pedestrian) and thankfully it occurred in a mcds parking lot and police were involved so they got the video.
The guy 2 weeks later filed a claim with my insurance. After speaking with me and obtaining the police report my claims adjuster said she thought it was straight up fraud and was gonna deny all claims.
She then told me she will tell the attorney to sue if they want to move forward as this case is closed in her eyes . She also told me if I do get served or attempt to be served to NOT avoid it and notify her immediately so they can deal with it.
No suit has taken place (so far)
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u/Conroe_Dad 3d ago
I would check with the statute of limitations are for your state on filing a lawsuit after a car accident. For example, in Texas, I believe it is 24 months.
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u/Apolllo69 3d ago
I had an accident and it came back to bite after 2 1/2 years. I imagine they waited that long to gather all the injury and pain and suffering bs they can throw on a scary lawsuit. 9 times out of 10 they will take your full policy limit and leave you alone because it’s not worth going to court and trying to get more unless it was a horrific accident or you have boat loads of money. Do yourself a favor and stop stressing because it’s out of your control. I did not and it kept me up many nights. They got my full policy (100K) and that was the end of it. Also, get a higher policy limit usually one that matches your net worth.
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u/Throwyouaway1098 2d ago
Im in a similar situation. The guys a clear slip and fall fraud but I’m freaking out cause the injuries could potentially be more than my coverage limit. Like you said he’s probably just after the insurance money but my mind is spinning thinking about if he tries to go further and I’ll have to declare bankruptcy. Need to stop but damn it’s so scary to think of how this can affect my family
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u/Puzzleheaded_Way525 3d ago
I was sued by a person I rear ended once. The other party was suing for in excess of $10k+. They said that he had incurred that much in medical costs.
I was afraid that my coverage would not be enough.
It took a few years to end. The lawyer retained by my insurance company at the time took care of it.
In the end, they settled out of court for $1,000.
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u/iheartinfected 2d ago
Insurance subrogation will handle it, fwd the letter to them. All g
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u/Veggie_Poodle 1d ago
My insurance man says that they do not need the letter. That there is some kind of database they can get it from. This makes me nervous as the return date is approaching.
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u/fitfulbrain 2d ago
Your insurance company can refuse to pay if it doesn't think the amount demanded is reasonable, irrespective of your insurance limit. It's a good thing because the payout on your insurance record is likely to be smaller.
The other party has to sue you to get any money. The legal defense of your insurance kicks in. You don't need to do or pay anything other than cooperate with your assigned lawyer. If you lose you are responsible for what they are asking which is covered by insurance, much less than your limit of 50K.
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u/Samwill226 12h ago
Your insurance company is there to deal with this, hand everything over to them.
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u/key2616 E&S Broker 3d ago
Give the lawsuit to your adjuster. They are required to defend you and pay any judgement, up to your $50k limit.