An insurance company payout after an auto accident in Katy does not automatically prevent a lawsuit. There are some situations in which courts permit a lawsuit to be filed against the at-fault driver. However, this usually only happens when the other driver seeks additional damages.
Can someone sue you after insurance pays in Katy?
Yes, after insurance pays in Katy, someone can still sue you for damages. This amount could be more than what the insurance coverage allows. A person might also sue if the insurance company denies the claim.
Why insurance payouts might prevent a lawsuit
Envision a scenario in which you receive a payout from a car insurance provider in Katy. If you know or suspect the opposing party is guilty of coercion or fraud, you can legally file a lawsuit even after the payout.
Coercion might happen if the other party offered a bribe or paid a bribe to reduce the settlement. If a party threatens another into accepting a low settlement, the offender might be found guilty of coercion or fraud.
The challenge lies in proving another party is actually guilty of coercion or fraud. Proving fraud/coercion is difficult unless one has sufficient documentation.
If you have emails, voicemail messages, or records of communication that demonstrate fraud, coercion or threats, it will be easier to prove guilt. Even a check that bounces when paying a bribe is a form of evidence. The courts might not permit a lawsuit for extra damages, but criminal charges might be possible.
Insurance settlements often require you to sign a release form to excuse the opposing party from additional liability. Absolving the other party creates the potential to obtain a settlement offer. Such waivers are legally binding contracts. They prevent someone from advancing later claims post-settlement.
Katy statute of limitations in car accidents
Car accident victims in Katy have two years to take legal action in the form of a personal injury lawsuit. If the two-year statute of limitations expires, the court will be asked to dismiss the lawsuit.
The Katy statute of limitations governing car accidents has a couple exceptions. There are certain unlikely yet possible scenarios that might extend the timeframe. It is possible that a second or third defendant exists yet their negligence is not known until later.
Maybe a negligent mechanic worked on the car that was wrecked. There is also the possibility of a defective part from the auto plant being installed. Even a negligent government employee who failed to trim greenery that blocked signage from view can be named as a defendant.
It is possible to file lawsuits against these negligent parties.
If the person injured in the accident is a minor or if the other party suffered mental incapacity, the statute of limitations could change.
Why it is possible to be sued after an insurance payout
The fact that Katy car crash victims can sue after an auto insurance payout is backed by logic and reason. Let’s take a quick look at the scenarios that allow for a lawsuit after a car insurance payout.
Fraud or coercion when settling
If the other person involved in the accident coerced you to accept a payout with the use of a threat or force, you have a solid basis for legal action. This would include a forced settlement or bribe.
Fraud that covered up wrongdoing also paves a path toward successful legal action. This might include additional compensation if the settlement offer was not enough to cover all expenses related to the incident.
A driver named as an additional at-fault party
Imagine a scenario in which an at-fault driver is identified after the accident. If new information comes to light after the victim received a payout, the judge might permit a lawsuit. However, Katy is a fault state for accident claims, meaning that the party at fault can be sued for damages. However, being sued for an accident in Katy is different from being liable for damages. The party suing you must prove their case in court before you are legally responsible for paying their damages.
Lapsed insurance coverage
The lapse of insurance coverage creates the potential for a lawsuit. For example, the insurance company might proceed with negotiations, make an offer, then learn that the driver has not paid monthly premiums. In such a situation, payment will not be issued.
If the insurance company pays the driver and later learns the driver didn’t pay their monthly premiums, the insurer can pursue repayment.
If the person at fault doesn’t have insurance coverage, then the victim can file a lawsuit for personal liability. Having insurance coverage can act as a deterrent for potential lawsuits. Individuals may be more inclined to pursue a claim through the insurance company rather than a lawsuit.
Moreover, if the car crash totaled the vehicle and/or caused significant bodily harm or death, the damages might surpass the limits of the negligent driver’s auto insurance coverage. The victim is legally empowered to accept the auto insurer’s settlement up to the policy limit, then file a personal injury lawsuit for property damage and financial losses. It is generally in a person’s best interest to purchase the highest amount of insurance coverage they can afford in order to avoid that scenario.
The plaintiff bears the burden of proof to show that significant harm was caused as a result of the negligence. The plaintiff must also prove a sincere effort was made to recover the entirety of the loss from the negligent driver’s auto insurance company prior to pursuing legal action.
If the negligent party lacks money, a home or other valuable assets, courts will not be able to enforce the entirety of a judgment right away. It might not be prudent to pursue legal action against a destitute individual regardless of the degree of negligence.
In cases involving complex or severe injuries, victims might file a lawsuit despite receiving insurance compensation to get more payment. This might be necessary to cover pain and suffering, medical expenses, and long-term care needs.
How to proceed if you are sued
If you are sued after a car insurance payout, do not panic. Reach out to your auto insurer to make it clear you face a lawsuit.
Secondly, contact an experienced Katy car accident attorney for a review of the lawsuit and car crash. Be aware that the clock is ticking after the service of the lawsuit. You might have less than two weeks to formally respond to the lawsuit with an answer.
Our Katy car accident attorneys are a call away
If you suffer an injury or vehicle damage, give us a call at (972) 565-6160. You can also contact our Katy personal injury law firm online to learn more about how we can help.