I was in a car accident back in February in New Jersey. Other driver side-swiped me, but I was a bit over the traffic line so I was at fault. I paid my tickets and thought that was the end of it.
(Not saying the other driver wasn’t hurt, but EMS wasn’t even called. They drove home, so didn’t seem like there was serious damage to them or their car. That’s why I’m surprised I’m being sued.)
Around two months after the accident, I got a letter from my insurance saying the other driver claimed medical injury. They didn’t provide any medical proof, so the insurance company closed the case.
Yesterday, I got a summons for civil action. I’m listed as the defendant, as well as “ABC corp” (which I think might be my insurance). I don’t understand why there’s a lawsuit since I have $250k coverage for medical injury. I’m waiting to hear from my insurance on this, but I was curious so I decided to ask here.
This is pretty normal. You’re being sued because you’re the person allegedly responsible for the injury. Lawsuits happen when claims don’t get settled, usually because there’s a disagreement or lack of communication. Part of your insurance coverage is for them to provide a lawyer to defend you. These lawsuits often get settled before trial. For now, don’t stress too much.
@Clive
Just make sure OP notifies their insurance about the notice! I’ve seen some lawyers get sneaky, trying to suggest notice to one party counts for all parties, or that it ‘got delayed.’ Not familiar with NJ rules specifically, but I once saw an attorney claim they emailed notice but ‘accidentally’ missed a letter in the email address.
@Keats
I notified my insurance and am just waiting to hear back from the claims adjuster. The summons was delivered by a server and my dad signed for it. Not sure if they notified insurance but they have my insurance info.
ABC Corp isn’t your insurance company. It’s a generic name used so they can bring others into the suit later, in case you were working at the time.
Assuming there’s no coverage issue, your insurance will defend you. Probably, the other driver saw a billboard, called a lawyer, and here you are. It happens a lot.
This is pretty much how it goes. If you haven’t yet, call your insurance and let them know about this letter—they may or may not need a copy. If you get contacted by the other driver or their lawyer, don’t talk to them without checking with your insurance first. They might want everything to go through the insurance company’s lawyer. Also, if you get any future letters or emails from the driver or their lawyer, just send them straight to your insurance.
Plenty of ‘auto injury’ clinics are happy to run tests on anyone in an accident, recommend physical therapy, and then a lawyer they work with will sue to get the clinic paid and themselves paid, with maybe a little left for the accident victim. It’s a whole industry! Where I’m from, we even had a music venue named after a big accident referral service that fed ‘victims’ to ‘injury clinics’ and lawyers. Maybe NJ is picking up the trend?
This is typical with personal injury cases. Sometimes they settle before court, but no one’s required to. You’re the defendant, but your insurance will likely pay for the settlement or judgment, as long as it’s under your policy limit and they haven’t done anything to make them liable for more.
Insurance won’t just write a check. They’ll review the injuries to see if they meet state rules, and then both sides negotiate the injury value. If they can’t reach a deal, it might end up in court. Some plaintiff lawyers file cases immediately because they believe insurance companies pay more once a suit is filed.
You probably won’t have much involvement besides talking with the lawyer your insurance hires, maybe a deposition or trial if it gets that far. Right now, just give your insurance the paperwork.
@Skylar
In some states, if the plaintiff offers to settle for the policy amount and the insurance says no, the insurer may be forced to pay above the policy limit if a judgment later exceeds it. So, sometimes the plaintiff’s lawyer will demand the policy amount early on. But for you, it sounds like the insurance rate hike may already have happened. Let the insurance and lawyer do their thing.
@Asher
Thanks again, I understand it way better now. Also, Geico offers accident forgiveness for first-time at-fault accidents, so my rates didn’t go up. But if the lawsuit caused a rate increase, would they notify me?
Happens all the time. Send in the paperwork and let insurance handle it. Check your coverage—PIP is for your own injuries (standard is 250k) and bodily injury is for other people’s injuries you caused. Usually, it’ll be 25k/50k or whatever your limits are. You may be mixing up PIP and Bodily Injury, but your adjuster can explain.
Usually, a lawsuit happens because the other side couldn’t agree with your insurer on the blame, the damage amount, or both.
Also, they may file a suit to get the settlement clock going. There’s a time limit on suing (statute of limitations), so filing suit ensures they’re within that time. If they spend two years negotiating and then file, they might be waiting two more years for a court date. Starting the case sooner shortens the waiting time.
Plus, lawsuits can be used to push your insurance to settle by making you feel stressed and nudging you to call them frequently.
This is standard in tort states. They made a claim, your insurance denied it, so they sued you. Just tell your insurance, and they’ll handle the defense. You’re only really at risk if they win more than your policy limit. In no-fault states, the bar for suing is usually higher.
Any update, OP? I found your post because I just had a similar accident where we both walked away, and now the other driver’s claiming injury. I’m worried this is where my case is headed.
Cameron said:
Any update, OP? I found your post because I just had a similar accident where we both walked away, and now the other driver’s claiming injury. I’m worried this is where my case is headed.
Hey, so I’m feeling better about the whole thing. My insurance assigned me a lawyer (didn’t see any reason to get my own). Nothing big has happened so far. I just had to answer some questions from the plaintiff’s lawyer. They told me the discovery process could take up to a year (includes depositions, medical exams, etc.). After that, the attorneys might go to non-binding arbitration, where an arbiter decides who’s at fault and suggests a settlement amount. If both sides don’t agree, it could go to trial, which could be 2+ years out since courts are backed up.
Basically, it sounds like it’s all about getting a settlement from my insurance. Makes me feel better knowing they can’t just make up a random amount. They’d want to keep it within my policy limit. Hope this info helps!