After A Car Accident, Does The Insurance Company Or The Victim Sue?

Car accidents can result in property damage, injuries, and financial losses. In the aftermath of a collision, determining liability and seeking compensation are needed in the recovery process. But after a vehicular accident, does the insurance company or the victim sue? Here are the factors that influence who files the lawsuit after a car accident.

Assessing Liability in Car Accidents

In vehicular accident cases, liability is typically determined based on negligence and fault. The party responsible for causing the accident through negligent or reckless behavior, such as speeding, distracted driving, or failure to obey traffic laws, may be held liable for the resulting damages and injuries.

In some jurisdictions, comparative fault rules apply, allowing each party’s degree of fault to be assessed. Even if both parties share responsibility for the accident, compensation may still be available based on the percentage of fault assigned to each party.

Role of Insurance Companies

Following an accident, individuals involved typically file insurance claims with their respective auto insurance providers to cover damages and injuries. Insurance companies investigate the accident, assess liability, and negotiate settlements with the parties involved.

If an insurance company pays out a claim to its policyholder for damages incurred in an accident, it may seek reimbursement from the at-fault party or their insurance company through a process known as subrogation. This allows the insurance company to recover the costs it incurred by compensating its policyholder for the accident-related expenses.

Circumstances for Filing a Lawsuit

If insurance negotiations fail to result in a fair settlement or if the at-fault party’s insurance coverage is insufficient to cover the victim’s damages, the victim may choose to file a lawsuit seeking compensation for their losses.

In cases where liability is disputed, or if there are conflicting accounts of how the accident occurred, the victim may opt to file a lawsuit to present their case before a court and seek a judgment on liability and damages.

Factors Influencing Legal Action

The severity of injuries, property damage, and financial losses resulting from the accident may influence the decision to pursue legal action. If the victim’s losses exceed the limits of insurance coverage or if non-economic damages such as pain and suffering are substantial, filing a lawsuit may be necessary to recover adequate compensation.

Lastly, it’s important to be aware of the statute of limitations, which sets a deadline for filing a lawsuit after a car accident. Failure to file a lawsuit within the specified timeframe may result in forfeiture of the right to seek compensation through legal action.