What happens if a claim against is denied by your insurer and the other driver sues you personally?

A year ago I had a woman in front of me hit her brakes, so I ran into the back of her vehicle. My vehicle was totaled and I recieved minor injuries while the other driver drove away with no injuries. A few months later my insurance company advised me that she had a soft tissue injury in her neck, and that she clamied that she sneezed and had to go to the ER post accident. The other driver asked for the full ammount of my policy ($25,000) but my insurer denied her; she eventually dropped the suit. She is now possibly retaining another attorney but has not told my insurance company anything. I have no assets but was curious if my wages could be garnished? Also if my insurer denies her and it goes to trial, will they cover whatever she wins?

Asked on July 11, 2014 under Personal Injury, Colorado


Gregory Abbott / Consumer Law Northwest

Answered 6 years ago | Contributor

If you are sued, simply turn it over to your insurance company.  They should pay to defend you and pay any Judgment against you, up to your policy limits (which sounds like $25,000 in this case).  Unless and until you go to court and a Judgment is entered against you, no one can garnish your wages or bank account and, as noted, your insurance company should pay any judgment up to the amount of your policy limits.

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