Having insurance does not provide absolute immunity from lawsuits. You are likely being sued because the damages from an incident (like a car accident) exceed your policy's liability limits, the claim is excluded from coverage (intentional acts), or to formally establish liability. Insurance covers costs up to your limit, but you are personally liable for amounts beyond that.
Even with insurance, individuals can still be sued for car accidents, especially if the coverage is insufficient, if fraud influenced a settlement, or if the claim process is delayed.
There are countless examples of unusual things that find their way into a lawsuit; however, two of the most common reasons are litigation due to physical or financial harm. These two issues have a wide array of topics and situations that fall under their umbrella term.
To protect your rights, you should take a few simple steps:
How can you avoid a potential lawsuit?
If you don't respond to a lawsuit by the deadline, the plaintiff can ask the court for a default judgment, meaning you automatically lose the case and the court grants the other party everything they asked for without your input. This judgment allows the plaintiff to take actions like garnishing wages, seizing property, or freezing bank accounts, and it can damage your credit, making it hard to get loans. You can sometimes get a default judgment canceled ("set aside"), but it's difficult, especially after the initial timeframe, and often requires showing a good reason for not responding, like not being properly served or a valid emergency, according to Illinois Legal Aid.
Yes, getting sued is a serious thing. You are out of your comfort zone and you face a professional litigator.
They could claim that they are judgment-proof: This means that they have no money or available assets to settle your judgment claim. Therefore, the judgment-proof person can be exempt from collection before the court's judgment or legal proceedings.
If an insurance company discovers that an insured has failed to pay insurance premiums as agreed, they can discontinue coverage during a lawsuit. As a result, it is important for parties to pay all insurance expenses when they become due.
Plus, insurance companies fear litigation; they would rather pay your claim than risk losing even more money in a lawsuit. Keep reading to learn about the top nine tricks insurance companies use to avoid paying you a fair settlement and how a legal professional can help you get the compensation you deserve.
Personal liability umbrella insurance helps protect all the things you work so hard for. If you have a liability lawsuit against you, umbrella insurance helps cover beyond what your primary liability coverage will pay for — keeping your assets, savings account, and future earnings safe and sound.
How To Emotionally Survive a Lawsuit
Plaintiffs who take their case to court win about 50% to 60% of the time. Your case type has a huge impact on the outcome. Car accident injury cases, for instance, have a 60% “win” rate. On the other hand, plaintiffs with a medical malpractice case only win about 27% to 37% of the time.
Once a lawsuit results in a money judgment, the winning party may pursue compensation through judgment debtors. If the debtor refuses to pay, a collection agency may use collection techniques, including wage executions, bank deposit levies, or installment payments, to enforce repayment and recover the unpaid judgment.
No, you cannot go to jail simply for failing to pay a civil judgment. However, you can face serious legal and financial consequences—especially if you ignore court orders or fail to appear in court related to the debt.
If you believe someone has filed a frivolous lawsuit against you, take the following steps to protect your rights:
Basic Principles of Insurance
In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.