Can I Get Sued for a Car Accident If I Have Insurance in Florida?

You might believe you are completely shielded from lawsuits after an accident if you have auto liability insurance. But, does having auto liability insurance mean you cannot get sued after an accident? No, it does not. Getting sued for a car accident is still possible even if you have insurance. In this article, we explain how auto insurance works, situations where you can still be sued, and how bad faith by your insurer could leave you exposed to even greater financial risk.

Understanding What It Means To Have Auto Liability Insurance in Florida

Florida law mandates motorists to carry minimum insurance coverage, which includes $10,000 in personal injury Protection (PIP) and $10,000 in Property Damage Liability (PDL). PIP covers your medical expenses, lost wages, and certain death benefits regardless of fault. On the other hand, PDL pays for damages you cause to someone else’s property in an accident where you are at fault. PIP does not cover property damage, whereas PDL does not cover injuries to other people.

Florida law does not require Bodily Injury Liability (BIL) unless your vehicle is registered as a taxi or you’ve been convicted of DUI. Taxis must carry $125,000 per person, $250,000 per accident in BIL, and a higher PDL coverage of $50,000. BIL covers injuries to others when you cause an accident, up to your coverage limits.

Can You Face a Lawsuit if You Have Auto Liability Insurance?

Even with auto liability insurance, you can face lawsuits for various reasons, including;

1. Disputes Over Fault

Your insurer may disagree with the injured party regarding who is responsible for the accident or the extent of your fault. If an agreement cannot be reached, the plaintiff may sue you to let the court decide. When this happens, the insurance company is gambling with your financial exposure. When they are wrong, an experienced bad faith attorney can help ensure the party responsible for placing the bet (the insurance company) pays out.

2. Disagreements About the Claim’s Value

Disputes may arise over how much the injured party should be paid. You may face a lawsuit if the plaintiff has severe injuries and your insurer offers less than they believe they are entitled to. Again, the insurance company is gambling that a jury will award less than the plaintiff is claiming their case is worth. When the insurance company is wrong, and the result is a Judgment in excess of your policy limits, an experienced Florida bad faith attorney can help.

3. Low Insurance Limits

If the value of the claimant’s damages exceeds your policy limits, they can sue you personally for the difference. Your insurance only covers up to the amount you bought. If you have assets like a home, investments, or savings, they could be at risk if a judgment exceeds your coverage. It is important to purchase sufficient insurance to protect your assets if the policy is properly employed for your protection. If you are facing the potential of an exposure in excess of the limits you have purchased, it is important to consult with a Florida bad faith attorney who can analyze the insurance company’s handling of the claim against you.

Your Insurer Should Defend You

In Florida, insurance companies have a duty to defend you against lawsuits that potentially fall within the scope of their coverage. Your insurance company should hire an attorney to represent you in court. However, this duty only applies to covered claims. If your insurance company claims the accident is not covered, they can defend you while reserving the right to deny coverage later. This is known as proceeding under a Reservation of Rights (ROR). If your insurance company has denied coverage, you should consult with a competent Florida Insurance Coverage attorney who can review the insurer’s denial and provide an opinion as to whether this denial was proper or not.

When the Insurance Company Acts in Bad Faith

Florida law protects you from insurance bad faith. If your insurance company refuses to settle when it reasonably could and should, refuses to defend and indemnify you when your policy required them to do so, or otherwise fails to comply with the broad duties of good faith claims’ handling practices under Florida Law, it may be acting in bad faith. If your insurer is acting in bad faith, it could result in you facing an excess judgment, personal financial loss, and unnecessary legal expenses. In such a case, you may have the right to sue your insurer for damages and hold them liable.

Legal Help Is Available

If your insurance company refuses to settle when it reasonably could and should, refuses to defend and indemnify you when your policy required them to do so, or otherwise fails to comply with the broad duties of good faith claims’ handling practices under Florida Law, contact our skilled Tampa insurance bad faith lawyer at Gunn Law Group P.A. for help protecting your rights.

Source:

flhsmv.gov/insurance/