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Can Your Car Insurance Policy Help You Cope With a Accident-Related Lawsuit?


Can Your Car Insurance Policy Help You Cope With a Accident-Related Lawsuit?

Car accidents and traffic mishaps can cause a lot of problems. They cause injuries, destruction of property and in some cases even death. However, one of the most overlooked consequences of car accidents is the prospect of a lawsuit. And it’s not that unlikely. In many states, people are allowed to sue the other party in the event of a car accident.

Lawsuits which are related to car accidents will typically involve medical as well as property damages. In some cases, you can even be sued for emotional distress resulting from a car accident. But regardless of the nature of the lawsuit, what remains true is that you have to be prepared, and one of the best ways to do this is by taking up a good car insurance policy.

Moreover, much of your concerns will be decided on the basis of whether you live in a no-fault state or not. In theory, a no-fault state does not allow lawsuits. However, because laws vary from state to state, it’s not unusual for some No-Fault states to allow certain types of law suits, provided they meet certain standards or certain types of proofs are given. Remember that even though certain states can be lumped together under the same category, they will have different concerns and issues. And because of this, they will have a different approach to certain issues, at least with regards to car insurance.

Provided you have undertaken the necessary steps to ensure yourself, your insurance company will defend you within the coverage limits of your policy should a lawsuit follow a traffic accident.

For example, let’s say that you have an insurance coverage which deals with lawsuits amounting to $100,000. So if you are being sued for $200,000 then your insurance coverage will take care of half of that amount. The remaining balance however will have to be covered by your own money. Under such circumstances, it’s not unusual for an insurance agent to advice their client to retain legal counsel for dealing with the lawsuit. And the reason why they are doing this is because lawsuits often involve the car insurance company, and so it’s as much their business as it is yours.

Regardless of how you feel about lawsuits, it’s important to remember that they can be as damaging as a traffic accident. And it is for this reason why you need to get a car insurance policy which helps you deal with such concerns.