How Does a Lawsuit Work for a Car Accident
In most car accident claims, the insurance company involved pays when the claimant wins their case. The insurance company typically represents another driver but can also represent a business or government entity.
Below, we offer some more information about who pays for personal injury in a car accident. We cover the different parties you might name in your car accident lawsuit, the types of compensation you could receive, and the specific process of receiving money once your case has been resolved through a settlement or jury verdict in your favor.
If I Get In a Car Accident Who Pays: Car Accident Lawsuit Defendant
When paying for damages in an accident, you have to name at least one defendant who you feel should pay for the economic and noneconomic losses you’ve incurred because of the accident and your injuries. Some car accident cases include two or more defendants because of multiple vehicles or their connection to the driver who caused an accident.
In most cases, the defendants you name in your motor vehicle accident lawsuit carry auto insurance or another type of insurance policy that applies to your claim. Insurance companies act on behalf of their policyholders. So, if you sue John Doe, you are technically suing John Doe’s auto insurance provider.
Regardless of whether an insurance company is representing their policyholder, your car accident lawyer might suggest you name one or more of the following in your lawsuit:
Who Pays for Damage in Car Accident: Defendant Examples
Another Motorist
Other drivers remain the most common defendants in car accident lawsuits. Negligent motorists who make poor choices while operating their vehicles cause serious, sometimes deadly, car accidents. Driving under the influence, distracted driving, and drowsy driving are a few examples of negligent driving behaviors that can give rise to a car accident lawsuit.
In most car accident cases, filing a claim against another insured driver means their bodily injury liability (BIL) insurance coverage will factor into the equation.
If an uninsured or underinsured driver caused your accident, your lawyer might advise you to bring a claim directly against the driver. In these situations, you can also receive some compensation by filing a claim under your uninsured or underinsured motorist coverage if you have these options on your auto insurance policy.
A Business
Various situations exist where your car accident lawyer might advise you to name a business in your lawsuit because their negligence led to the accident. Businesses can be partially or fully financially liable for damages, depending on the situation.
Here are some examples:
- A driver who causes a car accident is working and driving a company vehicle.
- An auto repair shop or mechanic performs subpar work that ultimately leads to a car accident after mechanical issues cause loss of control of a vehicle.
- A driver suffers a medical emergency and loses control of their vehicle because of an adverse reaction to a prescription drug or medical device failure.
- A drunk driver causes an accident after a bartender serves drinks to someone who is visibly intoxicated or a known alcoholic.
When businesses are involved in car accident lawsuits, an auto insurance carrier might not be. Sometimes commercial auto insurance coverage might play a part, but other types of commercial insurance often come into play if someone files a claim for damages against a business after a car accident.
An Auto Manufacturer
Companies that design and build auto parts and automobiles have a legal duty to bring safe cars to market. Yet, many cars, especially new models, suffer from design and/or manufacturing defects. Fortunately, quality control and inspections eliminate most defects before a particular model is released to the public.
However, sometimes automakers do not know about a dangerous defect until consumers have experienced multiple accidents. In other situations, automakers know about hazardous aspects of their vehicles and choose not to inform the public of the issue.
If a product defect led to a car accident that caused you injuries, your lawyer might advise you to name the automaker when you sue after a car accident.
A City, County, or State
Although suing a government entity is rare after a car accident, it does happen on occasion. Villages, cities, towns, counties, and states have a legal duty to maintain public roads.
Interstates, highways, and roads with potholes, sinkholes, uncleared debris and dead animals, and other hazardous situations can lead to treacherous car accidents. Adequately maintaining roads also includes maintaining traffic control devices like traffic lights and stop signs.
Finally, some roads are deathtraps that frequently see car accidents, suggesting a poor road design. If any of these situations apply to your car accident, your lawyer will advise you to use the appropriate entity. Sometimes cities and towns have insurance for claims against them, but in most cases, they pay claims directly.
Does Auto Insurance Cover Civil Lawsuit?
In most cases, auto insurance does cover civil lawsuits arising from car accidents. When you file a civil lawsuit after a car accident, the defendant's insurance company typically handles the legal proceedings and pays the settlement or court-awarded damages, up to the policy limits.
Here's a detailed breakdown of how auto insurance coverage works in civil lawsuits:
Bodily Injury Liability Coverage
- This is the primary insurance coverage that responds to civil lawsuits
- Covers both legal defense costs and damage awards
- Pays for the plaintiff's medical expenses, lost wages, and pain and suffering
- Limited by the policy's maximum coverage amounts
Insurance Company's Role
- Takes responsibility for defending the policyholder
- Provides legal representation
- Handles settlement negotiations
- Pays approved claims or court judgments
- Makes final payment decisions within policy limits
Coverage Limitations
- Insurance only pays up to the policy limits
- Additional damages beyond policy limits become the defendant's personal responsibility
- Some types of damages may be excluded from coverage
- Punitive damages are often not covered by insurance
Special Circumstances
- No-fault states require Personal Injury Protection (PIP) claims first
- Uninsured/underinsured motorist coverage may apply if the at-fault driver lacks adequate insurance
- Commercial insurance policies may apply when businesses are involved
- Multiple insurance policies might come into play in complex cases
When Insurance May Not Cover a Lawsuit
- Intentional acts or criminal behavior
- Excluded activities or uses of the vehicle
- Policy lapse or cancellation
- Policy exclusions for specific types of damages
- Cases involving fraud or misrepresentation
Process of Insurance Coverage in Civil Lawsuits
- Claim filing with the appropriate insurance carrier
- Insurance company investigation and liability determination
- Settlement negotiations or defense of the lawsuit
- Payment processing after settlement or court judgment
- Distribution of funds through the plaintiff's attorney
- Settlement of outstanding medical liens and legal fees
Working with an experienced car accident attorney can help ensure proper utilization of all available insurance coverage options while pursuing maximum compensation for injuries and damages.
How Do You Get Paid After a Car Accident
Types of Compensation in Car Accident Claims
In a car accident, who pays for the damage? If you reach a settlement or win your car accident claim, you could get paid for various accident-related losses. Here are examples of economic and noneconomic losses referred to as damages often included in car accident lawsuits. Victims can receive compensation for:
Current and Future Medical Treatment Costs
Car accidents come with various medical expenses. Sometimes these are one-time treatment costs, but sometimes victims must receive ongoing treatment. Ambulance transport to the nearest hospital for emergency room treatment is part of almost all major car accident claims.
However, some victims need surgery and must stay in the hospital for days, weeks, or months. Doctors likely have to order several diagnostic scans and tests. Pain medication and other prescriptions also fall under the umbrella of treatment costs.
In the most severe car accident lawsuits, injured victims need continuous care and might need to move to a long-term nursing care facility. Health insurance rarely covers nursing homes unless a person purchases a special policy. Those who do not sue for damages could find themselves bankrupt at the expense of paying for long-term nursing care.
Rehabilitation Expenses
Car accident victims typically participate in various types of costly rehabilitation as their bodies heal from their injuries. For some, a little physical therapy is enough to help regain lost functions after an accident. However, those with the most severe injuries typically need hours of physical therapy each week.
Many with severe injuries, especially permanent injuries, also need occupational therapy to learn how to do day-to-day activities in new ways. Rehabilitation can also include mental health services for those who suffer emotional trauma from their accident.
Lost Income
Severe car accidents lead to injuries that force people to take time away from work, sometimes for months. Full-time workers can use paid time off, such as vacation and sick days, but this doesn’t provide income for very long, especially with severe injuries.
Part-time workers don’t have the same benefit and might face a much bigger financial burden. Car accident claims typically include compensation for this lost income.
Lost Earning Capacity
The most severe car crashes can leave victims with catastrophic injuries that prevent them from returning to work or seeking future employment. In these situations, lawyers include lost earning capacity in the demand for damages after a car accident.
Lost earning capacity compensates accident victims for the income they would have earned over their lifetime had they not suffered car accident injuries. Car accident claims that include future lost earnings or salary often have a much higher value than other car accident claims.
Pain and Suffering
It's not uncommon to wonder who pays for pain and suffering in a car accident. Severe traffic accidents have physical and emotional consequences for those involved. Those with severe injuries often experience massive pain. Sometimes the pain subsides during recovery, but other times, victims face chronic, lifetime discomfort and pain.
Additionally, car accident victims can face emotional distress from the trauma of the accident, and they might deal with mental health issues because of their injuries. Those who suffer scars and permanent injuries are most vulnerable to mental health struggles.
For example, someone who loses a limb or suffers severe burns in a highly visible area of the body has to suffer the embarrassment of scarring and disfigurement. Lawyers and insurance companies evaluate pain and suffering and include it in compensation for victims.
Loss of Consortium
Car accident victims may also experience physical and emotional struggles in marital relationships. Loss of consortium is the legal community’s term to describe struggles that couples suffer inside and outside of the bedroom due to injuries. It can refer to a loss of physical intimacy but also a loss of emotional intimacy because a car accident victim is struggling with aspects of their injuries.
Reduced Quality of Life
Car accident victims who suffer severe injuries cannot do many of the same hobbies and activities they did before their accident. Sometimes permanent injuries make it impossible.
Other times victims face chronic pain issues. In either case, this reduced quality of life refers to the loss of enjoyment people face because of their car accident injuries. For example, victims who can no longer play sports, go to the gym, or travel, suffer from a reduced quality of life. Sometimes accident victims receive compensation for this change in their situation.
The Process of Seeking Compensation After a Car Accident
Understanding who pays if you sue after a car accident and the types of compensation that might be included needs further explanation in the context of the legal process of a car accident lawsuit. Below we discuss how personal injury protection (PIP) coverage impacts auto accidents lawsuits and when you can expect to have funds in your pocket if you win your car accident claim.
Whose Insurance Pays for a Car Accident
PIP Benefits Reduce Compensation for Car Accident Victims
Pennsylvania, New Jersey, and Florida are a few of several states that operate on a no-fault insurance system. Pennsylvania residents can opt-out, but in most states, residents who register a vehicle must carry minimum amounts of personal injury protection (PIP) or another type of no-fault insurance for lost income and medical expenses. In these states, everyone involved in a car accident files a claim with their insurance company under their own no-fault coverage. An approved claim will pay up to their policy limits.
Unfortunately, PIP insurance limits are low, so benefits rarely cover severe injuries that require surgery and hospitalization. Also, PIP coverage does not cover pain and suffering, loss of consortium, and other non-economic damages that car accident victims suffer.
Fortunately, victims can file a lawsuit to recover additional compensation. However, lawyers and insurance companies subtract any PIP benefits, reducing the compensation that the defendant pays a victim. An experienced car accident attorney can help you take advantage of all insurance options and take legal action, giving you the best chance of receiving maximum compensation for your injuries.
Receiving Payment After Resolving Your Car Accident Claim
Car accident claims typically get resolved in one of two ways. Most car accident victims reach a settlement agreement with the insurance company involved in the claim.
This might require a lawyer to file a lawsuit to get the insurance carrier to agree to pay fair compensation. In other cases, a lawyer can file an insurance claim on behalf of their client and send a demand letter to start settlement negotiations. Both sides have the incentive to reach an agreeable number because going to trial is expensive, and neither side wants to risk letting a jury decide the outcome.
When liability disputes muddy the waters, some car accident claims must go to trial. If you use and your car accident claim goes to trial, you will only receive compensation if the jury rules in your favor and awards you damages. Even after you win your case, you will have to wait a few weeks before seeing any money.
Once you sign the final documents for a settlement or court-awarded damages, the insurance company will usually send a check within 30 days. Your attorney will likely receive the check and use the funds to pay any outstanding medical bills related to the accident and your injuries. Next, they deduct attorney fees and other legal costs. Finally, your personal injury lawyer in Philadelphia will issue you the balance of the payment.
FAQ - Who Pays When You Sue in a Car Accident?
1. Who pays when you sue in a car accident if the at-fault driver is uninsured?
If the at-fault driver doesn’t have liability insurance, recovering compensation can be more challenging. You may be able to file a claim under your uninsured motorist coverage, which is part of your auto insurance policy. An experienced car accident attorney can explore all available options to seek compensation for your medical expenses, repair costs, and other accident-related losses.
2. What happens when multiple at-fault parties contribute to a car accident?
When multiple parties are responsible for a car accident, they may each bear a percentage of financial responsibility for damages, including medical bills, vehicle repairs, and lost income. Most car accident cases involving multiple parties require a thorough investigation to determine liability. A car accident lawyer can help ensure all at-fault parties compensate the injured party fairly.
3. Can you sue if bad road conditions or faulty traffic signals caused the accident?
Yes, you can sue if unsafe road conditions, such as potholes or malfunctioning signals, contributed to the crash. A government entity or agency responsible for maintaining the roads could be held liable if negligence is proven. Consulting a personal injury attorney is key to determining liability in these cases.
4. What should I do if the at-fault driver flees the scene?
If the at-fault driver flees in a hit-and-run, you may file an insurance claim against your uninsured motorist coverage to pay for medical expenses, vehicle damage, and out-of-pocket expenses. Gathering evidence and seeking legal action through an attorney can help you recover fair compensation even if the at-fault driver's insurance is unavailable.
5. Can you sue in a car accident if you share fault?
Yes. Comparative negligence laws allow accident victims to seek compensation even if they are partially at fault. For instance, if you are 20% responsible, your compensation for medical bills, property damage, or pain and suffering would be reduced by that percentage. A car accident attorney can help minimize your assigned fault.
6. What happens if an Uber or Lyft driver is involved in the accident?
If the at-fault driver was operating a rideshare vehicle during the crash, the rideshare company’s liability coverage might apply. Depending on the driver’s status (active ride or waiting for a fare), their employer may be liable, or an insurance settlement could involve the company’s insurance policy. A car accident lawyer can help determine coverage and ensure you seek additional compensation.
7. What options do family members have after losing a loved one in a car accident?
If a car accident results in death, immediate family members may file a personal injury lawsuit for wrongful death. Compensation can include lost future income, funeral costs, pain and suffering, and loss of consortium. An experienced car accident attorney can guide families through this legal process.
8. What is the deadline for filing a personal injury claim after a car accident?
The statute of limitations for personal injury claims varies by state but is generally two years from the date of the auto accident. Failing to file within this time frame may forfeit your right to seek compensation. Acting quickly ensures all necessary evidence is preserved, and your attorney can proceed without delay.
9. What can I do if my insurance company denies my claim?
If your insurance company denies your claim, you can dispute the denial, provide additional evidence, or file a personal injury lawsuit for bad faith practices. A car accident lawyer can negotiate or take legal action on your behalf to ensure you receive fair compensation under your insurance policy.
10. Can passengers in a car accident file a lawsuit?
Yes, passengers injured in a car accident can file a claim or lawsuit against the at-fault party, which might include the driver of their vehicle or another at-fault driver. Passengers typically don’t share liability in car accident cases and can seek compensation for medical expenses, emotional distress, and lost wages.
11. How can you cover medical bills while waiting for an insurance settlement or lawsuit outcome?
While a car accident lawsuit is being resolved, accident victims might rely on health insurance, medical payments coverage from their auto insurance policy, or payment plans set up with healthcare providers. Reimbursed medical bills and legal costs can later be deducted from your settlement.
12. What damages can a car accident victim recover for lost income?
Car accident claims often include compensation for lost wages, which may cover the time you’ve missed from work due to your physical injuries. If the accident also impacts your future earning potential, your car accident lawyer can calculate lost future income as part of the personal injury claim.
13. Are punitive damages an option in a car accident lawsuit?
Punitive damages may be awarded in personal injury cases when the at-fault party’s actions are particularly reckless, such as distracted driving or performing job-related duties under the influence. These damages are meant to penalize the at-fault driver and deter similar behavior.
14. If a defective vehicle part caused the accident, who pays?
If a defective auto part results in an accident, the auto repair shop, car manufacturer, or a supplier might share liability. Responsibility depends on whether the defect arose from a design flaw, faulty manufacturing, or inadequate repairs. Your attorney can identify liable parties and prepare an insurance claim.
15. How long does it take to receive an insurance settlement after an accident?
Once an insurance company agrees to pay, settlements are typically issued within 30 days. Before receiving final compensation, attorney fees, medical bills, and other legal costs may be deducted. An experienced car accident attorney can expedite the legal process for accident victims.
16. Does liability insurance cover all damages in car accident claims?
Liability insurance, including bodily injury liability coverage, is designed to cover damages caused by the at-fault driver, such as medical expenses, legal fees, and property damage. However, coverage limits may apply, and victims may need to seek additional compensation for non-economic damages like pain and suffering.
17. What if an employer is liable for a car accident caused by a negligent employee?
If the driver causing the auto accident was performing job-related duties at the time, their employer might be held financially responsible. This often involves the employer’s liability coverage or an insurance claim filed under the company’s policy.
18. Can emotional distress and non-economic damages be included in car accident lawsuits?
Yes, compensation for emotional distress and other non-economic damages, such as loss of enjoyment of life, pain and suffering, or reduced quality of life, can be sought in a car accident lawsuit, especially for serious or permanent injuries.
19. What costs are typically included in vehicle repair compensation?
Most auto insurance policies cover repair costs for vehicle damage caused by an accident. This may include bodywork, replacement parts, or collision repairs. If an insurance settlement doesn’t fully cover repairs, the at-fault party may be liable for the remaining financial responsibility.
20. How do accident victims pay attorney fees for personal injury cases?
Most car accident attorneys work on a contingency fee basis, meaning their legal fees are deducted from your settlement or award. This ensures you don’t face out-of-pocket expenses during the legal process, allowing you to focus on your recovery.
By addressing everything from liability insurance disputes to seeking compensation for pain and suffering, a car accident lawyer can guide you through the complexities of auto accident cases to ensure fair and comprehensive results. Protect your rights by consulting with an experienced car accident attorney today.
Get A Free Consultation Today!
Take the First Step Toward Justice
If you’ve been injured in a car accident, don’t wait to get the help you deserve. Contact an experienced car accident attorney today for a free consultation. We’ll guide you through the legal process, help you seek maximum compensation for your medical expenses, lost income, and other damages, and fight to protect your rights.
Call us now or click below to schedule your free case evaluation. Your road to recovery starts here.