What to do if I rear-ended someone but my auto insurer refused to settle the claimant’s demand and now I’m being sued for personal injury/damages?

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What to do if I rear-ended someone but my auto insurer refused to settle the claimant’s demand and now I’m being sued for personal injury/damages?

Why is my company allowing me to get sued? Why didn’t they just pay the claim? I thought this was one reason we’re forced to purchase liability insurance- to ensure compensation while minimizing burdens on the courts? What happens if the plaintiff wins the case? I cannot afford to pay. If the insurance company is forced to pay the damages, what happens to me? Will I be sued by my insurance company or forced to pay for anything or will my burden be limited to increased premiums and an unclean driving record?

Asked on August 22, 2012 under Accident Law, Georgia

Answers:

Leigh Anne Timiney / Timiney Law Firm

Answered 8 years ago | Contributor

Most personal injury claims are settled by auto insurance companies.  However, sometimes an injured party and an insurance company cannot come to an agreement on a settlement and a formal lawsuit is filed.  Most of the time this happens when the insurance company feels the injured party is not as severly injured as they claim to be or is being unreasonable in the amount they are demanding for settlement.  Your insurance company should handle this lawsuit for you.  They will provide a defense attorney to handle this matter on your behalf and ultimately when a resolution is reached, they will pay the amount that has been either agreed upon by the parties or ordered by third party, such as if the case were to end up in arbitration or trial.  Your insurance company does not come back to you after the fact and expect reimbursement.  This is why you pay for insurance, to cover you if instances like this arise.  You may face an increased premium and yes, if you are at fault for any accident, it could affect your dirivng record.  


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