Can I Get Sued For A Car Accident If I Have Insurance? (2025)

Can Someone Sue You for a Car Accident If You Have Insurance?

If you cause an accident without insurance, the other person involved may file a lawsuit against you. But you may be wondering, “Can I be sued for a car accident if I have insurance?”

Nearly every car insurance policy has a clause specifying that the insurance company will defend you if you are named in a lawsuit. If you do get sued, your car insurance policy will typically hire a lawyer to represent you.

Many car insurance companies are able to work out settlements without the need for a lawsuit. However, there are some circumstances where you might find yourself being sued. These are four of the most common:

1. There’s a Dispute Over Liability

In some car accidents, there is one party who is clearly at fault. However, this is not always the case. If the two sides are attempting to negotiate but cannot agree on each driver’s degree of fault, the injured person may file a lawsuit so the court can decide.

For example, imagine that you were recently in an accident where you ran a red light and hit another car. The attorney for the injured person insists you were 100% at fault because you ran the red light. However, your insurance company maintains that the driver you hit was 10% at fault because they were speeding at the time of the accident.

If neither side is willing to back down or negotiate, the injured person’s lawyer will likely file a car accident lawsuit against you. The lawsuit moves the case into the realm of the court, so a judge or jury will likely be able to decide each driver’s percentage of fault.

2. The Sides Cannot Agree on a Settlement

Very few personal injury cases make it to trial. Often, the involved parties can agree on a settlement without the injured party even filing a lawsuit. Attorneys for both sides have an incentive to settle. Settling a case offers several advantages over filing a lawsuit and going to trial, including the following:

• Settling is considerably less expensive.
• It takes much less time.
• It allows both sides to avoid the uncertainty that comes with a trial.

Attorneys are skilled negotiators, and they know when it makes sense to give concessions and when it doesn’t. In some cases, it may prove impossible for the two sides to agree on a settlement amount. If they have clearly reached an impasse, the injured party may file a lawsuit against you.

3. The Statute of Limitations Is Approaching

Sometimes, the other party’s filing of a lawsuit has nothing to do with you. Every state has its own statute of limitations for personal injury lawsuits. Once the statute of limitations runs out, the injured person loses their right to sue forever.

If the injured person’s attorney sees that the statute of limitations is near, they may file a lawsuit to keep their options open. The filing itself does not mean the case will automatically go to court. In many situations, both sides can still negotiate a settlement after the start of a suit.

4. The Injured Person’s Damages Exceed Your Policy Limit

Can someone sue you if you have car insurance? When you purchase a car insurance policy, it’s easy to make the mistake of thinking your policy will cover you no matter what.

However, every insurance policy has a limit — in other words, the maximum amount it will pay if you cause an accident. If the value of the injured person’s damages, meaning the compensation for losses they’re entitled to, exceeds your policy limit, you could still be liable.

If you have few assets, the injured person likely won’t try to sue you. But if you have sufficient bank account balances, vehicles or other assets, they may file a lawsuit in an attempt to recover the rest of the compensation they are entitled to.

You might wonder — how much car insurance do I need to reduce my risk of getting sued? Many experts recommend that you get a liability policy that is at least equal to your net worth. This can help shield your assets if you cause a major accident.

Can You Still Be Sued After a Settlement?

After the vast majority of settlements, it’s impossible for the plaintiff to pursue a lawsuit. That is the purpose of reaching a settlement. However, in instances when the plaintiff can demonstrate that there was coercion or fraud involved in the process, they could have the right to sue.

Another exception to this would be if another party is identified and deemed liable for the accident. The plaintiff may have settled the claim with you, but not with this other party. Although you are not being sued, you may still receive a summons requiring you to testify in court as part of the legal process.

How Fault Laws Affect Whether You Can Be Sued

When it comes to traffic accidents, states have fault-based, no-fault or choice no-fault insurance systems. These can impact whether you can be sued or not.

In fault states, the other party can sue you for any injuries they sustained as long as you hold some fault in the crash. The amount of fault you need to hold to be liable varies.

States that have modified comparative negligence laws would require you to bear the majority of the blame before you can be held liable. With pure comparative negligence, you can be liable for any percentage of fault you hold.

In the few states that have pure contributory negligence laws, if the plaintiff is assigned any percentage of fault, even 1%, they can’t sue you. That’s because they were partly responsible for their injuries.

No-fault states are different. Anyone involved in a collision would first file against their personal injury protection (PIP) insurance. Proving who caused the accident isn’t necessary. That changes, however, if the injuries are so severe that PIP can’t cover the costs. The plaintiff can then file a lawsuit against you, though they’ll have to demonstrate you were responsible.

The most complex states are those that follow choice no-fault laws. These are Pennsylvania, Kentucky and New Jersey. Under this system, drivers can decide whether to follow a fault-based or no-fault system by purchasing the right insurance.

If someone decides to purchase limited tort coverage, they can only sue the other party if their injuries are serious and their PIP doesn’t cover the losses. Someone who decides on full tort insurance, however, can file a lawsuit after any injury if they can prove the other party was responsible.

Have You Been Involved in a Serious Car Accident?

If you caused an accident and the injured person is suing you, your insurance company should have a car accident lawyer to handle your case and attempt to work out a settlement. However, if your insurance company is not covering your claim, or if you don’t have insurance at all, you might be unsure of what to do next.

The right lawyer may be able to help you make sense of your situation and determine your next move. But how do you choose? Let us help. At ConsumerShield, we know the importance of an experienced attorney, and we’re dedicated to helping people like you find the legal help they need. Fill out our form below for a free case review!