Being Sued For An Auto Accident? Who Pays Your Attorney?

This is a very common question.  The scenario usually involves some type of vehicle crash with arguments on both sides as to who is responsible for causing the accident.  You report the crash to your auto insurance company and don’t think much more about it until a year or so later you are met by a process server and served with a Complaint.  You realize YOU are being sued because the other person is alleging injuries and now you only have 20 days to file a…Pleading? An Answer?  What should you do?  You know that you will have to pay for any attorney you hire to defend you and that can be costly depending on the length of time the lawsuit continues.  If you do nothing, you will probably end up with a Judgment against you that could be devastating.  The FIRST thing you should do is contact your automobile insurance company IMMEDIATELY!

People don’t always realize that your automobile insurance policy provides not only financial protection in the amount of Bodily Injury coverage you purchased but also your insurance company has a Duty To Defend you when you are sued for an auto accident covered under the policy.  This means your insurance company should hire a lawyer to represent you and defend you in the lawsuit.  So, obviously your first call should be to your auto insurance carrier so that they may take steps to retain legal counsel on your behalf and file an Answer to the Complaint.  

This also applies when one person who does not have auto insurance is driving another person’s insured vehicle.  The insurance company should provide a legal defense for both their named insured (owner) and the permissive user (driver) of the automobile.  If there are two insurers with primary obligations under the claim, they will often share the cost of the defense so long as no conflict exists.  Also, if a primary insurer refuses to defend the insured, an excess insurer may step in and provide a defense and then later attempt to obtain repayment.  There may also be issues regarding which insurance is primary and which is excess.  This may require other procedures to determine the proper order of coverage.  

Bottom line, if you are served with a Complaint because of an automobile accident regardless of whether you are the driver or owner, contact your auto insurance company who insured you vehicle at the time of the accident immediately.  Send them the Complaint and request that they provide a legal defense and legal counsel for your benefit in defending the suit.  Good Luck.