companies have a stipulation in their policies that state they’ll defend you in court. In a majority of cases, this results in an out-of-court settlement. While you may still have to pay out of pocket, the damages may be far less than the $20,000 the other party is asking for.
If you’re facing a lawsuit, inform your car insurance company immediately. You may also want to contact a defense attorney of your own.
In certain situations, your insurer may drop you as a customer following this incident, but it’s a common occurrence after a serious accident or lawsuit. To make sure you’re still legal, shop car insurance on
to find the best rates from dozens of providers. You may also want to raise your liability coverage in the future to a higher amount than the state minimum to cover you from financial damages or lawsuits.”
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.