Will Your Car Insurance Company Provide a Lawyer for Your Car Accident Claim?

Getting into a car accident is never a fun experience. Between the shock of the crash itself, potential injuries, damage to your vehicle, and dealing with insurance companies, it can quickly become overwhelming. One key question many people have is whether their car insurance company will provide a lawyer if they get sued after an accident. The answer is – it depends. In this article, I’ll break down what you need to know about how car insurance policies handle legal representation after an accident.

Will Your Car Insurance Company Provide a Lawyer?

In most cases, yes, your car insurance company will provide you with a lawyer if you get sued after an accident. This is part of their “duty to defend” you that is included in standard car insurance policies. Basically, if someone files a lawsuit against you claiming you caused the accident and their injuries/damages, your insurer is obligated to provide you with legal counsel and cover legal costs up to the limits defined in your policy.

The reason insurance companies do this is because it’s in their financial interest. If they let you fend for yourself in a lawsuit and you lose or agree to an expensive settlement, they’ll likely end up having to pay out a lot more in damages. By providing a lawyer, they can better control legal costs and decisions to minimize their payout.

What is the Duty to Defend in a Car Insurance Policy?

The duty to defend is a standard provision included in car insurance policies, as well as other types of liability insurance. It requires your insurance company to provide legal representation for you if you get sued for something that is covered under the insurance policy.

In the case of car insurance, this means if you cause an accident and get sued by the other driver for their medical bills, lost wages, pain and suffering, etc., your insurer must hire a lawyer to defend you in the case. This duty to defend applies even if the lawsuit is groundless, false or fraudulent.

There are a few reasons insurers agree to this duty:

1. It allows them to control the legal defense to serve their own financial interests
2. It’s a valuable service they can provide to attract customers
3. In many states, insurance regulators require liability policies to include a duty to defend provision

So in most standard car insurance policies you’ll see language to the effect of:

“We have the right and duty to defend any suit asking for damages covered by the terms of this policy. We may investigate and settle any claim or suit as we think appropriate.”

How Does My Insurance Policy Determine Legal Representation?

The specific terms for your insurer’s duty to defend you will be spelled out in your car insurance policy documents. These are things like:

• The maximum amount the insurer will pay for legal defense
• Any deductibles you may owe
• Specific situations that are excluded from coverage
• Your responsibilities for cooperating with the legal counsel provided

The maximum payout for legal fees is based on your coverage limits. Most policies break this down into two parts:

1. The maximum amount paid out per person you injure
2. The maximum amount paid out per accident if multiple people are injured

For example, say you have liability limits of $50,000 per person and $100,000 per accident. If you cause a crash and seriously injure one person, your insurer will cover legal defense fees up to $50,000. If you injure four people in the accident and they all sue you, the insurer will cover up to a total of $100,000 for legal defense across all the cases.

Under What Conditions Do Insurance Companies Provide Legal Counsel?

Generally, your insurer’s duty to defend will kick in under the following conditions after a car accident you cause:

• The other driver files a lawsuit against you
• The lawsuit is seeking damages for bodily injury and/or property damage
• The damages being sought would be covered under your insurance policy
• You contact your insurer and submit the lawsuit paperwork to them promptly
• You cooperate with the lawyer and legal strategy coordinated by the insurer

If these criteria are met, you can typically expect your insurance company to appoint a lawyer to begin working on your defense. However, there are some scenarios where they may try to deny their duty to defend, which I’ll cover in a bit.

When Should I Hire a Lawyer for My Car Accident?

Even if your insurance company is providing you with a lawyer for the lawsuit, there are still some situations where I recommend hiring your own car accident lawyer:

• You suffered significant injuries and have high medical bills
• Your injuries impact your ability to work and earn income
• The accident resulted in a fatality
• Fault for the accident is being disputed
• Your damages exceed the other driver’s insurance policy limits
• The insurance company is delaying or denying your claim

In these more complex situations, it’s wise to have a legal expert who is 100% in your corner and not beholden to the insurance company’s interests. An experienced car accident attorney can assess the strength of your case, gather evidence to support your claim, handle communications with insurers, and fight to get you the maximum possible compensation.

Most car accident lawyers work on contingency, meaning they only get paid if they win money for you. Typical contingency fees range from 25-40% of the settlement/judgement. While no one likes the idea of giving up part of their payout, research shows that car accident victims who hire a lawyer on average receive settlements 3.5 times larger than those who don’t, even after legal fees.

Why Might the Insurance Company Not Provide a Lawyer?

While car insurance companies are legally obligated to provide you with a defense attorney if you get sued after an accident in most cases, there are some scenarios where they may try to deny coverage:

• You didn’t notify them of the accident promptly
• You gave a statement admitting fault or apologizing before contacting them
• They believe you caused the accident intentionally rather than negligently
• You were doing something excluded in your policy, like driving for Uber/Lyft
• Your policy had lapsed due to non-payment at the time of the accident
• The damages being sought exceed your coverage limits

If any of these situations apply, you may receive a “reservation of rights” letter from the insurer saying they will tentatively provide a legal defense for you, but may withdraw it and deny coverage later if some of the above issues are confirmed. A reservation of rights allows them to protect themselves from liability.

What Happens if the Insurance Company Is Not Obligated to Provide a Lawyer?

If your insurance company determines they are not obligated to provide you with a lawyer based on a coverage issue or policy exclusion, you’ll likely have to hire your own legal counsel to defend against the lawsuit. If you don’t, the case could proceed and you may end up with a default judgement against you.

Hiring a private defense attorney can get very costly, very quickly. Hourly rates commonly range from $250-$500 per hour or more. For a complex case that goes to trial, legal defense fees could easily exceed tens or even hundreds of thousands of dollars.

If this happens, I strongly recommend consulting with an experienced insurance attorney. They can review your situation and policy to determine if the insurer is acting in bad faith by denying your defense. If so, you may be able to take legal action against them. Many insurance lawyers provide free consultations, so it’s worth having them assess your situation.

When Should I Consider Getting Legal Advice Following a Car Wreck?

Even if you aren’t sure yet whether you want to hire a car accident lawyer, it never hurts to get some initial legal advice after a serious crash. Most reputable attorneys offer free, no-obligation consultations where you can get your questions answered and learn about your rights and options.

I recommend considering seeking legal advice if:

• You suffered injuries requiring medical treatment
• You had to miss work and lose income due to the accident
• Your car was seriously damaged or totaled
• The other driver is uninsured or underinsured
• Fault for the accident is unclear or being disputed by the other driver
• The insurance companies are contacting you asking for statements

An initial legal consultation can provide valuable guidance on issues like what to say (and not say) to insurance adjusters, how to get your vehicle damage and medical bills paid for, and what your case might be worth. If you do decide to hire the attorney, they can take over communications with the insurers and handle the stressful parts of the process for you.

How Do Car Insurance Policies Handle Legal Costs?

Car insurance policies typically include coverage for some legal costs under a few different scenarios:

1. Liability claims against you
2. Personal injury protection (PIP) or MedPay claims for your injuries
3. Uninsured/underinsured motorist (UM/UIM) claims if the other driver doesn’t have enough insurance

For liability claims, legal defense costs fall under “supplementary payments” in the policy language. Not only will they provide a lawyer for you, but the insurer will also pay for things like court filing fees, investigators, expert witnesses, court reporters, etc. up to your liability coverage limits.

If your policy includes PIP or MedPay coverage, this will pay for your medical bills and some other costs after an accident regardless of fault. This coverage usually also includes paying legal fees related to the insurer seeking reimbursement from the at-fault party’s insurance.

For UM/UIM claims, these kick in if you’re hit by a driver with no insurance or not enough coverage to fully compensate you. Your insurer basically steps into the role of the other party’s insurance. So if you have to sue the at-fault driver, your UM/UIM coverage will pay for a lawyer to pursue that case.

What is Covered Under Liability Insurance?

Liability coverage is the part of your car insurance that pays out if you cause an accident that injures someone or damages their property. Each state sets minimum required liability limits, but you can (and should!) buy higher limits for better protection.

Liability car insurance is broken down into three main numbers:

1. Bodily injury per person limit
2. Bodily injury per accident limit
3. Property damage per accident limit

For example, you may see it written as “50/100/50.” That means:

• Up to $50,000 for injury-related costs per person you injure
• Up to $100,000 total for all injury costs if multiple people are hurt
• Up to $50,000 for the other party’s vehicle damage and other property damage

So let’s say you cause an accident that seriously injures the other driver and totals their car. Your liability insurance would cover their medical bills, lost wages, pain and suffering up to $50,000. It would also cover up to $50,000 to replace their vehicle.

How Does My Policy Limit Affect Legal Coverage?

Your liability coverage limits play a big role in how much legal representation the insurer will provide. Basically, the higher your limits, the more they will pay for legal costs to defend you if you’re sued.

Let’s consider two scenarios with different liability limits:

As you can see, having low limits leaves you financially vulnerable if legal costs exceed your coverage. It’s wise to purchase the highest liability limits you can afford. I typically recommend at least $100,000 per person and $300,000 per accident.

What Expenses Can An Insurance Company Refuse to Cover?

Even if your car insurance company accepts their duty to defend you, there are still some costs they may refuse to pay:

Your personal legal counsel: If you choose to hire your own lawyer in addition to the one the insurer provides, you’ll likely have to pay for that yourself. The only exception is if a conflict of interest exists between you and the insurer.

Damages above your policy limits: If you are found liable for more than your policy limits, that excess judgement is your responsibility. The insurer is not obligated to pay more than the maximum coverage defined in your policy contract.

Punitive damages: If the lawsuit results in punitive damages being awarded, insurance generally won’t cover that. Punitive damages are meant to punish especially negligent or reckless conduct and are usually excluded from coverage.

Intentional acts: Liability insurance covers accidents and negligence. But if you intentionally injure someone or damage property, that’s not covered. Any legal costs resulting from intentional acts will be your responsibility.

Illegal acts: Similarly, insurers won’t cover legal costs for accidents that occur while you’re committing a crime, driving under the influence, fleeing police, racing, etc. You’ll be on the hook for those costs if you caused the accident.

What Should I Do After Causing a Car Accident?

If you believe you caused a car accident, the steps you take in the immediate aftermath are crucial for protecting your legal rights and ensuring your insurance coverage applies. Here are the key steps to follow:

1. Stop and pull over safely. Check for injuries and call 911 if needed.
2. Exchange contact and insurance info with the other driver.
3. Take photos of vehicle damage, road conditions, injuries.
4. Talk to witnesses and get their contact info if possible.
5. Call the police to report the accident if they don’t arrive on scene.
6. Avoid admitting fault or apologizing at the scene. Stick to the facts.
7. Notify your insurance company as soon as possible, within 24 hours.
8. Get a copy of the accident report from the police.
9. Start a file with all accident-related documents and info.
10. Consider consulting a car accident lawyer for legal advice.

How to Notify Your Insurance Company

One of the most important things to do after any accident is to promptly notify your car insurance company. This is a requirement in every car insurance policy. Failure to inform them in a timely manner could jeopardize your coverage.

I recommend contacting your insurer as soon as safely possible after the crash to start the claims process, ideally within 24 hours. Even if you aren’t sure yet whether you’ll file a claim, it’s best to put them on notice.

You can typically contact your agent, call the insurer’s claims reporting number, or file a claim online or via a mobile app. Be prepared to provide the following info:

• Policy number
• Date and time of accident
• Location of accident
• Description of what happened
• Other driver’s name and insurance information
• Names and contact info for passengers and witnesses
• Whether police and ambulance responded
• Photos you took of damage and the accident scene

The claims rep will ask for your statement of what happened and who was at fault. I suggest sticking to short, factual answers and avoid speculating about fault or admitting blame for the accident. If you believe you caused the crash, it’s okay to say that, but don’t elaborate.

What Steps to Take to Ensure Coverage for the Accident?

To protect your right to insurance coverage after an at-fault accident, make sure to do the following:

1. Promptly report the crash to your insurer, ideally within 24 hours.
2. Provide truthful information, but avoid speculation or admitting fault.
3. Fully cooperate with the insurer’s investigation and information requests.
4. Send them copies of any legal paperwork you receive, like a lawsuit.
5. Get written consent from the insurer before giving any statements.
6. Don’t agree to any settlementsor sign any releases without the insurer’s approval.
7. Keep detailed records of all accident-related expenses, medical care, lost wages.
8. Attend all court dates and legal proceedings as directed by the insurer or defense counsel.

If you fail to properly notify the insurer or cooperate with their process, they may have grounds to deny coverage for the accident. So it’s crucial to be proactive and responsive in your dealings with them.

What If My Insurance Company Does Not Settle the Case?

In some situations, the insurance company may not be able to reach a settlement agreement with the other party suing you. This could be because:

• Their demands exceed your policy limits
• There are disputes over fault or the extent of damages
• They believe they can win more at trial than the insurer is offering

If a settlement isn’t reached, the case will proceed to trial. The insurer is still obligated to provide your legal defense through the trial process, with the appointed lawyer continuing to represent you in court.

However, if the court hands down a judgement against you that exceeds your insurance limits, you will be personally responsible for that excess amount. The insurer is not required to pay more than your coverage caps. That’s why it’s so important to have high enough liability limits to protect your income and assets.

What are My Options to Sue the Insurer?

If you believe your car insurance company is mishandling your claim, acting in bad faith, or improperly denying coverage for an accident you caused, you may have grounds for a lawsuit against them. Some examples of bad faith or improper handling include:

• Failing to promptly investigate your claim
• Denying your claim without a reasonable basis
• Delaying payment on a valid claim
• Offering an unreasonably low settlement
• Failing to defend you against a lawsuit
• Failing to inform you of settlement offers or legal deadlines

If any of these situations arise, I suggest contacting an insurance lawyer right away. They can review your case and assess whether you have a viable bad faith claim against the insurer. If successful, you may be able to recover damages beyond the original insurance claim, like legal fees, emotional distress, and even punitive damages meant to punish the insurer’s misconduct.

Many insurance attorneys work on contingency, meaning you only pay if they win money for you. So it may be worth at least getting a case evaluation before deciding whether to proceed with legal action against an insurer.

How to Navigate a Personal Injury Claim

If you end up making a liability claim against someone else’s insurance after an accident they caused, or find yourself on the receiving end of an injury claim, the process can be complex and stressful to navigate on your own.

Key steps in the personal injury claim process typically include:

1. Investigation: Gathering evidence like police reports, medical records, witness statements, photos.
2. Treatment: Getting necessary medical care and reaching maximum medical improvement (MMI).
3. Demand: Sending the insurer a demand letter outlining your injuries and compensation sought.
4. Negotiation: The insurance adjuster responds with an offer and negotiation between parties proceeds.
5. Litigation: If a fair settlement can’t be reached, you may need to file a personal injury lawsuit.
6. Discovery: Both sides share evidence and take depositions from parties and witnesses.
7. Mediation: Attempt to reach a settlement agreement with help of a neutral mediator before trial.
8. Trial: If the case still doesn’t settle, it will be argued at trial and a jury decides the outcome.

Each of these stages has many substeps, legal deadlines, and opportunities for missteps that could damage the value of your claim. An experienced personal injury attorney can guide you through the process, handle the legal heavy lifting, and fight for the maximum possible financial recovery.

Should You Seek a Personal Injury Attorney?

So how do you know if your situation warrants getting a personal injury lawyer involved? I typically recommend at least consulting with one if:

• Your injuries are severe enough to require significant medical treatment or missed work
• The accident resulted in long-term or permanent health issues or disability
• Fault for the accident is being disputed or shared among multiple parties
• The insurance company is disputing or lowballing the value of your damages
• The at-fault driver was uninsured or underinsured
• A fatality occurred as a result of the accident

In these more complex scenarios, having quality legal representation can make a meaningful difference in the outcome of your case. Most personal injury lawyers offer free, no-obligation case evaluations. So there’s no cost to at least get a professional opinion on the merits of your potential claim.

What to Expect from a Lawyer to Defend Your Claim

If you do decide to hire an attorney to represent you in a car accident injury claim, either as the plaintiff or defendant, here’s what you can generally expect them to handle:

• Communicating with the insurers and other parties’ lawyers on your behalf
• Investigating the accident and gathering supporting evidence and witness testimony
• Reviewing your medical records and working with experts to assess injuries/treatment
• Calculating the full value of your economic and non-economic damages
• Drafting and sending a professional demand letter seeking fair compensation
• Aggressively negotiating with the insurer and defense counsel to seek a favorable settlement
• Preparing your case for trial if a reasonable agreement can’t be reached
• Fighting for your rights and representing your interests in court
• Dealing with the paperwork, deadlines, and administrative aspects of your case

Experienced car accident injury lawyers have the legal knowledge, courtroom skills, professional relationships, and objectivity to build the strongest possible case on your behalf. While you focus on your physical recovery, they focus on pursuing the financial recovery you need to put your life back together.

What Evidence is Needed to Support a Personal Injury Claim?

To have a strong and persuasive personal injury case after a car accident, you need solid evidence to prove liability (who was at fault) and damages (how badly you were hurt). Some key pieces of evidence your lawyer will work to gather may include:

The more evidence you have backing up your side of the story, the better your odds of securing a favorable outcome in your injury case. An attorney can help determine what evidence is most critical for your unique situation and circumstances.

Conclusion

Dealing with the aftermath of a car accident is never easy, especially if you’re being sued by another party and facing the threat of a big financial loss. The good news is, for accidents that occur while you’re insured, your car insurance company should provide you with a lawyer as part of your liability coverage.

This is known as their “duty to defend” and it obligates the insurer to pay for attorneys to represent you if you get sued for a car accident. However, there are some scenarios where they may try to deny coverage, which is why it’s wise to review your policy in detail and consult your own legal counsel if needed.

If you end up in a dispute with your insurance company over your coverage and legal defense, don’t hesitate to contact an experienced insurance attorney to assess your options. And if you suffered serious injuries in an accident, it’s worth at least consulting with a personal injury lawyer to understand your rights.

Ultimately, making smart choices with your car insurance coverage, like buying enough liability insurance, can provide valuable legal protection and peace of mind if an accident occurs. But if you do end up in a lawsuit, know that you have options to ensure your rights and financial interests are protected.

If you’ve been in a car accident and have questions about your legal rights, I encourage you to reach out to an experienced attorney for a free consultation. They can review the specifics of your situation and advise you on the best path forward.

Don’t navigate the stressful aftermath of a crash alone. Get an expert legal advocate on your side who can fight for the compensation and justice you deserve.