Hi guys,
I was involved in a car accident in march 2023 where both me and the other driver shared fault. They ran a red light and I was in a right lane only lane going straight.
My insurance company which is progressive paid for the damages. However 6 months after the accident my insurance company notified me that the other driver got a lawyer and was demanding policy limits for liability 25k/50k. After a couple of months, progressive called me and notified me that they settled with the other driver for a couple hundred bucks ~$500ish. I thought it was very low considering they were going for policy limits so I asked progressive if I was liable for anything and they confirmed I wasn’t since it was below my limits and closed the case. I never received any documentation of the settlement and just forgot about it. This was in August 2023.
Now today I noticed I was getting a bunch of law firm offers that I was being sued. These were just ads from different law firms and nothing official. I recognized the name of the other driver so I knew what it was about. I search on my local online court system for the lawsuit and sure enough I see I’m being sued. I haven’t been served or received any official documentation.
Is it possible that I’m being sued after the other driver settled with my insurance company?
Will my insurance company still represent me after settling?
I don’t have that insurance company anymore as I changed carriers. Will that matter I am no longer their client?
Should I seek a lawyer regardless?
Sorry but I’m genuinely freaking out. I was so relived to hear the case was settled last year and to see this now is a kick in the stomach.
I am being sued for a car accident 6 months later after my insurance company settled with the other driver?
byu/OneOneSix inInsurance
Posted by OneOneSix
3 Comments
It is going to depend on what your insurance “settled”. If they paid to have the damage to the car repaired, that likely is not part of it unless they found additional damage your company does not want to pay due to it being unrelated or potentially a request for diminished value.
The other possibility and the more likely possibility is they are pursing a claim for bodily injury that your company either denied as unrelated due to the minor nature of the accident or could not reach an agreement on regarding the value.
Your insurance company should provide a defense under your insurance contract and will either hire an attorney or assign one that is employed by the company already.
I cannot provide you with legal advice on whether you should hire your own attorney but your company should get one for you, paid for by your policy.
>Is it possible that I’m being sued after the other driver settled with my insurance company?
Yes
>Will my insurance company still represent me after settling?
Yes
>I don’t have that insurance company anymore as I changed carriers. Will that matter I am no longer their client?
No
>Should I seek a lawyer regardless?
No
It’s possible your insurance sent the other person a check without an executed release. If they never cashed the check, they could file suit. If they did cash the check, they can still file suit but they probably won’t be successful. It’s becoming more common for carriers to do settlements like this. Usually they send a letter with the check or have it on the memo line of the check that cashing it constitutes acceptance of the settlement offer.
Your insurance company would still have to defend you. Even if you’re not their insured any longer. You were at the time of the accident. That’s what matters.
Contact the insurance company, let them know what’s going on. Within a couple days an adjuster will be assigned or their staff attorneys will be assigned and they’ll contact you to go over the next steps. Once you know what’s actually going on, you can consult with an attorney, but it’s at your expense. It usually isn’t necessary unless you have assets to collect against and there’s some reason to believe that would happen.