Caleb Meriwether, Haven Insurance Partners, visits with Dan Reaves, host of ‘The Dan Reaves Show,’ today, and each Wednesday at 3:30 p.m., to discuss all things insurance.
Rear-end collisions are one of the most common types of car accidents — and in most cases, the driver in the rear is found at fault. But what actually happens if the other driver decides to sue you? Here’s a breakdown from the insurance company’s side.
1. Claim Reporting
As soon as the accident happens, you’re required to notify your auto insurance company. They’ll open a claim file and assign an adjuster to your case. You’ll provide details of the accident, the police report, and any witness statements.
2. Liability Investigation
The adjuster will investigate the facts, review evidence, and determine who was at fault. In a rear-end collision, liability often falls on the rear driver unless there’s evidence of unusual circumstances.
3. If the Other Driver Files a Lawsuit
If the other party chooses to sue instead of settling directly:
- Your insurer’s duty to defend kicks in — they hire and pay a defense attorney for you.
- Legal costs are usually covered in addition to your liability limits.
- The attorney works for the insurance company but represents your legal interests.
4. Settlement Negotiations
Your insurer will try to resolve the case, typically aiming to settle within your policy limits. If an agreement is reached, they pay the settlement and close the claim.
5. Going to Trial
If no settlement is reached:
- The insurer’s legal team defends you in court.
- If you lose, the insurer pays up to your policy limit.
- If the judgment is more than your limits, you are personally responsible for the excess (unless you have an umbrella policy).
6. Possible Outcomes
- Claim closed after settlement — most common.
- Trial verdict — less common, but possible.
- Excess judgment — rare, but a risk if damages exceed your coverage.
- Subrogation — your insurer may seek reimbursement from another party if they believe someone else was partly at fault.
Key Takeaways
- Your insurer is obligated to defend you for covered claims, even if the lawsuit has no merit.
- They control settlement decisions and can settle within your limits without your approval.
- Higher liability limits or an umbrella policy can protect you from personal exposure in large claims.
- Report the accident promptly — late reporting can give your insurer grounds to deny coverage.
