Can You Be Sued After Insurance Pays in Texas?
If you were accused of causing a car accident in Texas, your car insurance company likely sent money to the victim to pay for medical bills, property damage, and more. Once the victim got the settlement, you may have thought that was the end. But in some cases, it’s not, as the car accident victim can file a lawsuit against you even after getting a settlement from insurance. Here’s why and what to do if it happens to you.
Is It Common To Be Sued After Insurance Pays the Victim?
It’s not common to be sued after insurance has paid a settlement for a car accident. In fact, most insurance companies require victims to sign an agreement stating they will not seek additional money or take further legal action. If they choose to initiate a lawsuit anyway, it will likely get dismissed by a judge.
As a result, in most cases, you do not have to worry about being sued once your car insurance company has paid the victim. However, there are some exceptions to know about.
In What Scenarios Can a Car Accident Victim Sue You After a Settlement?
Once in a while, a judge will let a victim sue after a settlement rather than dismissing the case. However, the judge has to have a good reason for allowing the case, and it certainly doesn’t mean the victim will win. For example, if there’s evidence that the victim faced fraud or was coerced to accept the settlement, they may be able to sue you to get more money.
Another situation where you may be sued is if you were initially not involved in the car accident claim, but you’re now considered an additional at-fault driver. Since this is new information that was not known when the victim agreed not to pursue legal action, a judge may allow them to sue you. In Texas, accident victims can only sue individuals, not the other driver’s insurance company, which is why you may get sued instead of your insurer.
What Should You Do If You’re Sued?
If you are faced with a lawsuit brought on by a car accident that you caused, try to avoid panicking. Help is available, but you must ask for it as soon as possible for the best results. First, contact your car insurance company to let them know you are being sued for a crash they settled. They are obligated to provide you with legal counsel, so they should assign you a lawyer as soon as possible.
In this state, you only have a few weeks to contact the court to file your answer to the lawsuit, so do not wait for legal assistance. If your insurance company hasn’t responded to you or offered you legal help, contact our Texas law firm at (972) 573-4532 to talk to a lawyer for the legal answers you need today.