If I've Been Sued By Another Driver, Will my Costs Go Up?

Getting into a car accident is always a terrible thing, no matter how small or big it is. You're likely going to have to deal with the stress from the crash as well as the stress from trying to deal with all of the insurance issues and, in some cases, you may even face a DUI. One thing that can happen to you have a car accident is that you can be sued by the driver of the other vehicle. This happens quite frequently to drivers all over America, and it's the reason that most insurance companies require liability protection.

When you cause an accident, there are all kinds of different damages that can result from this. It's highly likely that the driver of the other vehicle will suffer injuries to his or her person, and these costs can be extremely high in some cases. Furthermore. most accidents also result in some damage to property, and this will usually involve damage to the other driver's vehicle. Having to repair or replace a vehicle can be a great expense, and sometimes the great amount of damages involved in an accident will lead a party to sue you for whatever your insurance won't cover or sometimes the whole amount.

How Liability Coverage Works

Liability coverage is designed to help protect you in these cases. When you purchase a policy, you will be required to buy a certain amount of bodily injury liability coverage and property damage liability coverage. These two types of coverage are designed to provide you with compensation in the event that you cause injury or damage to another person's body or property, and they can also help to provide you with funds for legal services in the event that you are sued. In order to use any of these funds after you cause an accident, then you are going to have to file a claim.

Filing a claim means that you're asking your insurance provider to pay for these damages that you have caused in the accident. If a person is suing you after an accident, then it's likely that you have already filed a claim or will have to in order to get the money for legal protection that your policy provides. If you are asking your provider to come up with funds for you and pay out on your policy, then there is a good chance this could cause your rates to go up in the long run.

Simply put, making a claim on your policy means that you want to cash in on what your provider has promised to pay you in the event of a accident. This claim is going to go on file, and it's probably going to mean that your rates will go up when it's time to renew your policy. If you've caused an accident, that will likely signal to your provider that you are a risky driver, and this is a really good reason for them to want to raise your rates.

When It Isn't Your Fault

Sometimes you will get sued after an accident that was not your fault. In these events you may still be able to rely on the funds provided by your policy for legal protection, but your provider may be more understanding of such a situation. Just because you get sued doesn't mean that you are automatically going to have to pay higher rates. Some companies will have different rules and regulations regarding this, while others are going to have very strict policies. It's up to you to find out what your company does in these cases.

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